Three Reasons to Never Buy a Franchise

Many people who are considering going into business often look at the franchise opportunities available as a safer way to get started than going it alone. What many of them do not realize is they will be forced to pay dearly for this so-called safety and will not even have the freedom to make their own decisions. Here we will discuss three of the most persuasive reasons why you should never consider buying a franchise.

The first reason why you never want to go into business as a franchise is, depending on the exact deal you enter into, you will be paying between one and ten percent or more of your revenue as a royalty fee to the franchiser at some predetermined time, usually every month or quarter.

The second reason to avoid going into business as a franchise is that you will have little say in major decisions that will affect you greatly. Want to change your menu or offer a different line of products? In almost every case, you will not be able to because these decisions, as well as every other, will be made by the franchiser only and then implemented by the franchisee whether they agree with the strategy or not.

The third reason you do not want to open a franchise business is that you will likely be forced to buy your supplies and products from the franchiser or only franchiser-approved vendors. The reasoning here is this keeps everything uniform and consistent, which it does, but also is likely to cost you considerably more than if you were able to shop around on your own.

Don't be fooled by the nice brochures and empty promises of many of the franchise offers you will see in the marketplace. People who are looking to open their own business should take the time and make the effort to come up with their own business plan. Often, you can find a way to operate a similar business without giving up any of your profits or decision making control.

Aldar_Nagy

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