The Truth About Franchising
Many Florida residents have been bitten by the entrepreneurial bug. They think it’s fun and exciting to own their own business and basically do what they want. However, once they think it over, they decide that operating a franchise would be easier.
While statistics seem to paint franchises as nothing but sunshine and rainbows, they come with challenges, just like any other business venture. There have been horror stories over the years about franchises involving fast food businesses.
While franchises can be great money-making opportunities, they can also be frustrating to operate, to the point where they can fail and cost a budding entrepreneur a lot of money. Here’s what you should know about franchises before committing to one.
You Can’t Have High Expectations
Some people expect to do little work and make six or seven figures every year. However, there are no guarantees when buying a franchise. Even if it is a proven business model, if it’s not run properly or it’s in a bad location, it may not make much money. Talk to current franchise owners to get an idea of what to expect.
There’s a Lack of Control
One of the biggest downsides of a franchise is that it is pretty much under someone else’s control. A franchise is technically not your business. You are essentially running someone else’ business under their guidelines. You don’t have the freedom that comes with running your own business, so keep that in mind. There are some aspects, such as marketing tactics, management changes, and supply chain issues that can greatly affect your profit.
You Need to Know Your Legal Obligations
Running a franchise comes with legal obligations. For example, you may be prohibited from badmouthing the company or its products or services. You may also be asked to sign a noncompete agreement, which means you cannot share proprietary information with competitors. You’ll be aware of your legal obligations up front.
It’s More Work Than You Think
One of the upsides of franchising is that you follow a proven system that will make running a business —and your entire life, for that matter — easier in the long run. The processes involved in a franchise are there to eliminate many of the challenges associated with starting a business. Still, franchise owners may be expected to run operations themselves for a certain timeframe, which will require being on-site. Plus, you may have to meet certain timelines in order to open on time, so you will definitely need to put in the work so you can stay on track.
Learn More About Franchising
Running a franchise may be easier than running a full-fledged business, but there is still a lot involved. Make sure you are aware of what a franchise entails before signing any paperwork.
With Orlando franchise lawyer B.F. Godfrey from Godfrey Legal on your side, you can make the right decisions and avoid serious mistakes. To schedule a consultation, fill out the online form or call (407) 890-0023.