LEARNING ABOUT FRANCHISING OPPORTUNITIES

Franchising is a growing option for small business entrepreneurs seeking a “head start” into a profitable business venture. The benefits of franchise ownership are only as strong as the franchise selected. There are competitive advantages that include brand identification, consistency of product, benefiting from franchisors’ experience (including training, operations manuals, site location, store design, reduced cost of equipment, and more). In exchange for an “up front” fee and ongoing royalty payments, franchisees benefit in group purchasing power, advertising, marketing materials and more.

There are disadvantages also that include a loss of independence, perhaps an over-dependency on the franchisor, and even sometimes bad “rub off” from problems within the franchise system. Who can forget the “hot pickle” or “finger in the chili” problems associated with some major franchises. Customers may suffer at any franchise location because of the misfortunes of a single unit.

If you believe you might be interested in franchising as a way to establish your new small business, be sure to go to the following websites that speak to the subject quite well: www.franchising.com  and www.franchising.org. There are many more, but these will help. Also, some of our SCORE Counselors have experience in the franchising area. Be sure to request their help!