After job-hunting for so long, buying a franchise can seem more and more appealing. Becoming a franchise owner can be an incredibly successful move if you make the right decisions and are working for the right company, but as with anything, things can easily go wrong. It’s easy to think that franchise ownership is right for you because it seems so flexible and seems as though you’re in total control, but sometimes this isn’t the career move for those with certain backgrounds or certain personality traits. This leads to that inevitable question: How do I know if franchise ownership is right for me?
The Pros to Taking a Job as a Franchise Owner
It’s first important to understand some of the responsibilities of a franchise owner. In general, a franchise owner is responsible for a specific location, or branch, of an already large and well-established company. A few of the pros include:
You have the branding finished for you before you even start work.
Working under a large corporation means that everyone already knows about your business (usually). This means that you won’t need to worry about quite as much branding or aggressive marketing, and it also gives you a sense of job security. You’re at a job where you already know the company is successful, and you could eventually benefit from any budget changes from corporate.
Banks are more likely to give you a loan to get started.
Starting a franchise is far less risky than starting your own business, so banks will surely give you a loan (a good loan) to get you off the ground. In some situations, the national branch of your company will also be more than willing to help.
Recruiting great employees is also much easier because you have the brand name.
Your staff will make or break a company. The really well qualified candidates will no doubt have a few choices when it comes to employment, so your brand name will help put you in the running. Startup companies struggle with this and are often left with a less-than-stellar staff that doesn’t help the company grow.
Training and guidance will come from corporate along the way.
For some this might be a negative to franchise ownership (as discussed below), but for many it’s a huge positive. If you’ve never run a business before, starting from scratch can be overwhelming. A franchise opportunity will offer training manuals and help you along the way. After all, the national branch wants you to be successful as much as you do.
The Cons to Franchise Ownership as Your Next Job
Although the franchise industry is very persuasive and often urges many that it is a booming industry where you will succeed, there are some downfalls that might not be right for you. A few of the cons to owning a franchise include:
You don’t have as much freedom to run the business the way you want it to be done.
As discussed above, it can sometimes be great to get help from corporate when you’ve just started your company. However, what’s important to understand is that this never ends. Once your company gets up and running, you might not be able to be quite as creative as you’d like. If you propose a new idea, it could easily get shut down.
Startup costs are still expensive.
It’s a common misconception that starting a franchise isn’t expensive. Although it may be a bit less than a startup, that’s not always the case. Most franchisors will ask franchisees to pay a certain amount just to start the business, and then it’s usually your responsibility to pay for all of the materials you need to run the business.
The reputation of other branches can affect your business.
It’s never good when the mistakes of others can affect your business. You might be doing a great job and taking extra measures to avoid mistakes, but if other branches are not, you could be in trouble. You rely a lot on your reputation, and other branches have that same reputation.
Making the Decision about Franchise Opportunities
If you do decide that taking over a franchise is something that might work with your lifestyle, there are quite a few steps to follow in order to get started. You can learn more about the process at the Bureau of Consumer Protection website.
Did you decide to go the franchise route when you were looking for a job? In the comments below, tell us your story and some of the pros and cons that you found.
Amanda DiSilvestro is a graduate of Illinois State University. Although she graduated with an English Education degree, she found herself working as a full-time blogger at Highervisibility, nationally recognized as one of the best SEO companies in the country. Connect with HigherVisibility on Google+ and Twitter to learn more!