Pros and Cons of Franchising
Canada has a wealth of franchise opportunities available for individuals with a strong work ethic, solid business skills and a desire to work for themselves under the guidance of a franchising company. Food, senior care, cleaning and pet grooming are just a few examples of the many franchise industries through which you can realize your full earning potential.
As with any business model, the franchise industry has its pros and cons, both of which should be taken into consideration before you proceed in making an investment into starting your own franchise location.
Pros of Franchising
1. The franchising business model is solid and proven. You need only look at the prevalence, popularity and growth of franchised businesses over the years to see that the franchiser/franchisee relationship is a reputable and profitable one.
2. Franchisers want to help franchisees succeed. Unlike owning an independent business where you are solely invested in your performance, working as a franchisee means that your franchiser has a stake in your success and will do what it takes to help you along the way.
3.Franchising provides a certain amount of flexibility. Operating your own business often allows you to have more control over your daily schedule than you would when working in a subordinate career role. Some franchises even involve working out of your home so that you can spend more time with your family.
4. Franchising is a less risky way to run a business than starting from scratch. Franchisers have contracts and guidelines in place that are designed to set you on the right path when opening your new location. This poses less risk on your part than would occur if you go it alone as a business owner.
5. Reputable franchisers provide plenty of mentoring services. Although you are managing the day-to-day operations of your individual franchise location, you have access to training programs, professional support, marketing assistance and other tools to promote the success of your business.
6. Lenders appreciate successful franchises. If you need to apply for a home, car or other type of loan, the fact that you are a franchise owner can work in your favor with many potential lenders. This is particularly true if your business is a lucrative one.
7. Locations are typically protected by the franchiser. In order to ensure that two or more locations of the same franchise are not splitting a customer base and therefore hurting one another's profit margin, franchisers take care to not crowd a territory with business opportunities.
Cons of Franchising
1. Some franchise industries are competitive. Although your location may be the only one of its specific franchise in your territory, chances are that different franchises within your industry may be operating in the same area. For example, when various food-service franchises are in close distance to one another, they may compete for customers and profit.
2. Investment money is required upfront, and when additional fees are factored in, your total investment into a franchise opportunity can reach $100,000 or more. You will need to have initial access to a lump sum of money in order to start the franchising process.
3. People with poor time management and customer service skills may struggle with the responsibilities of operating a franchise. Though this industry does allow for more flexibility than many traditional career positions, franchisees need to be organized and prepared to act as team leaders in order for a business to thrive.
Because there are so many benefits to becoming a franchisee in Canada, this type of opportunity certainly outweighs any cons and is well worth pursuing if you have an interest in managing a business.
Start your search today for the right franchise opportunity for you!