Purchasing a Franchise: Pros and Cons
Are you looking to buy a business? Have you considered purchasing a franchise? At Lakes Business Group, we have been able to get an up-close view of the pros and cons of franchise ownership. Some franchises are easy to work with and some have a lot of hoops to jump through and unexpected costs. Here’s what we’ve learned:
- Guidance and support of the franchisor
- Access to a recognized name/corporate level advertising
- Ability to obtain better employees because of recognized name
- Recipes/formulas for success have already been developed and outlined
- Training programs already developed for new employees
- Strict guidelines
- Limited products and services allowed
- Franchise fees/hidden fees
- Risk of franchisor or other business owners ruining the company’s reputation
Before entering into a franchise agreement, it is vital to have an understanding of the Franchise Disclosure Document (FDD) and heavily research the company you are buying into.
Our team at Lakes Business Group can help direct you in buying the right business for you.