I recently spoke to a small business owner in the food industry about opening a small business for myself.
He doesn't seem to happy about this franchise fees and other things they impose. What are you thoughts about opening a small business? Franchise vs non-franchise?
I know with a franchise, you get name recognition and they also do some marketing for you (to a certain extent), but is it worth it?
I'm trying to think of a small business to open, but have not narrowed it down to food, service or retail. Any pro's and con's to each that you can think of would be much appreciated.
Thanks!
2007-02-12 04:10:55 · 4 answers · asked by Anonymous in Business & Finance ➔ Small Business
There are pros and cons for both types of businesses. I would look into both and decide whish is best for you.
I own a franchise and this is what I can tell you from a franchise point of view.
With a franchise, there are royalty fees involved. A portion goes to 'headquarters' and a small portion goes to an ad campaign fund national ads but not your local ads. Depending on the business and the age of the company, you still need to do your own local marketing as well as pay for it. Our company takes 10% commission and 3% for the ad campaign fund.
However, in a franchise there is the support, ongoing training, vendor lists, etc. All things that that will make it easier for you to start up your business verses trying to start it on your own. So your some of your royalty fees are going towards those things.
Despite paying the royalty fees, there are other ways you can make money w/in your business. You just need to be creative about it.
Good Luck!
2007-02-12 10:43:24 · answer #1 · answered by Brianna C 2 · 2⤊ 0⤋
Franchising is obviously a massive industry and constitutes one of the main pathways into small business for those seeking to master their own professional destiny. Yes, franchises generally have a lower failure rate than `normal' small businesses.
For more information: http://soffront.com/resources/
2014-09-16 22:21:07 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I owned a franchise for 3 years, and I have to say that I felt very bad about the royalties and fees I paid out. I do all the work and I pay them? My franchise was not heavily advertised, but I still had to pay monthly.
Be sure of what you're going to get, how much you'll be paying and how long y ou have to get out of the deal. Check and recheck everything and never sign anything without reading it completely and making sure that you understand everything.
2007-02-12 04:19:45 · answer #3 · answered by Marvinator 7 · 2⤊ 0⤋
you might begin plenty of firms with those cash. It is well to shop for a franchise or to begin a brand new trade in a site that you simply like plenty, so that you wont need to paintings with out likeing it, Also it's well to begin a trade in a site that you recognize plenty of matters, so that you study approximately your opponents and figuring out what purchasers will like Good good fortune
2016-09-05 07:47:38 · answer #4 · answered by greenland 4 · 0⤊ 0⤋