Taking a franchise is a wise and profitable decision in many ways but an aspiring entrepreneur has to be cautious while taking it. Read below to know more
One cannot deny the fact that a business through franchising is like an icing on a cake. This is because franchising gives an entrepreneur or an aspirant franchisee with excessive leverages. But with such leverages also comes responsibilities. As Shahnaz Husain, Founder, Chairperson and Managing Director, says, “The franchisee enjoys several benefits of being associated with a renowned and established business. But, benefits also imply responsibilities. The franchisee has to ensure that the franchisor’s brand name and goodwill are not devalued. The franchisee is responsible for protecting, enhancing and promoting the brand name. In fact, the franchisee’s own success depends on it. It is important that all franchisees operate in accordance with the principles and standards of the franchisor’s business.”
Benefits of owning a franchise
Franchising is the easiest and quickest way to establish a successful business. Starting a new business through franchise route is a good option in number of ways. These are –
The other side of the coin
But being a franchisee can be a bit difficult at times. Let us discuss the various drawbacks of taking up a franchise business, which include –
But if you take an overall view of the franchise model, you will find it a better option than running a business independently. You can have the best franchise deal if you do extensive research before locking up on a particular franchise business. Also, you must review the franchise agreement thoroughly and negotiate the onerous provisions with the franchisor. To conclude it is always necessary to measure the pros and cons of a franchise before venturing into this route.