B2B Lead Generation

The Pros and Cons of Franchise Ownership

Franchise opportunities are more structured than business opportunities. If thinking of purchasing a franchise, just like with any business venture, there are pros and cons of franchise ownership. For instance, purchasing a franchise can be a little more expensive than buying a business, but it comes with a ton of "built in trial and error work" that you will not need to do. Someone else has pioneered that trail for you.

It is true; generally, buyers operate under their own name not featuring the seller's trademark, run their business the way they want and call all the shots. In the case of a franchise, with the initial fee you pay, along with future royalties, you gain the advantages of using the franchisor's brand, trademark, logos, operating systems, signage, expensive demand generation marketing and other marketing practices - website with B2B content creation, real-world content creation and lead generation to name a few.

Support being a phone call or email away is another huge asset for a franchisee. For an owner of a business, there is no ongoing support from the previous business owner making you the responsible proprietor; basically. you are on your own. As the owner of a franchise, however, there is continuous support from the franchisor and you are able to utilize their existing operations system and sell their services or products; and you also have use of a proven track record and training program. With both a business and franchise purchase, both may or may not require lead generation, but most certainly will involve demand generation. So, should you buy a business or franchise?

The Pros of Franchise Ownership:

Unlike a business purchase, many benefits come with the purchase of a franchise. The purchaser does not have to "go it alone" and start all business aspects from the ground level, essentially getting a business package.

The Cons of Franchise Ownership:

When considering the purchase of a franchise, do not let the excitement of owning one influence your decisions. Do not let impulses control how you proceed without the proper planning for success.

Strict guidelines and expectations are par-for-the-course, and hard-driven independent entrepreneurial personalities may find it hard to adapt to the restrictions of a franchise. If you prefer things to be done your way or it's the highway, then you might want to consider a business purchase where you have complete control. It is a good idea to hire an experienced CPA to help you set up a good cash-flow projection and to better control expenses.

Associated Costs: