Why Franchise?

Hey Rohan,

I understand you have some interest in Franchising. While there are many different types of business ownership, this email will solely entail some of the advantages and drawbacks of becoming a franchisee. So, what is a franchise? A franchise is a business where the franchiser licenses it’s name, operating designs, and business expertise to you, the franchisee. What you should consider with franchising is that although there is a reliable business in your hands, there are large upfront costs. The franchise you work for probably will have a ready made, fully operational business with brand recognition that is appealing to consumers. Some of the requirements for becoming a franchisee are paying the initial franchise fee, agreeing on a monthly royalty on all of your profits, purchasing all inventory for the business directly from the franchiser and taking the franchise training course. One of the main advantages of franchises are that they are much less risky then starting up your own business. Consumers will already be attracted to your business because it is under a well known, established brand for quick, reliable food. Some of the disadvantages are that you might have less freedom, there might be a very long contract, and the initial start up costs are quite high. Remember: If you franchise, although there is a recognized brand, it does not mean automatic success. There is still a small chance that your business could fall through.