A franchise gives franchisees (individual owners/operators) with a certain level of

independence where they can run their business, as the saying goes, "Owning a franchise
allows you to go into business for yourself, but not by yourself." A franchise offers a well-
known good or service that may already have a well-known brand name. As a result, the
franchisee gains access to a customer base that would typically take years to build up. By
partnering with tried-and-true items and business practices, a franchise boosts your chances
of company success. Franchises may draw customers with the promise of a specific level of
consistency and quality since the franchise agreement requires it.

Important pre-opening assistance is provided by franchises, including site selection,

design, building, finance, training, and a grand opening program. Franchises provide
continuous support in the form of instruction, local and national advertising, operational
guidelines, operational assistance, ongoing supervision and management support,
enhanced purchasing power, and access to bulk purchases. On the other hand, the
franchise is not entirely self-sufficient. The processes and limitations outlined by the
franchisor in the franchisee agreement must be followed by franchisees when operating their
enterprises. These limitations often cover the range of goods and services that can be
provided, the cost, and the geographical area. This may be the most significant drawback of
owning a franchise for some people. Franchisees must also pay continuing royalties and
advertising costs in addition to the original franchise price. Franchisees need to be careful to
strike a balance between the franchisor's requirements and available assistance and their
own managerial skills. If other franchisees are performing poorly or the franchisor
encounters an unforeseen issue, a damaged, system-wide image may ensue. A franchise
agreement's term (duration) is typically finite, and the franchisee may have little or no control
in how it will be terminated.

Purchasing a franchise is similar to purchasing any other type of business in that you
must conduct a thorough investigation into the franchise. Being a franchisee, however, can
be the fast track to success if you are well-suited for a franchise operation and choose the
correct franchise.

Reference:

Ward, S. (2020, April 8). Pros and cons of owning a franchise. The Balance Small Business.
Retrieved June 30, 2022, from https://www.thebalancesmb.com/should-you-buy-a-franchise-
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