A new Franchise is started every 17 seconds in the United States.  There are over 300,000 franchised small businesses operating in the United States.

What is a Franchise

A right granted a third party or independent operator under a license agreement to do business under the umbrella of an existing organization (Franchiser) thereby selling the organization’s goods and services while utilizing the organization’s trademark, marketing methods, name recognition and business process to do so.  The third party or independent operator is known as the Franchisee.
 

What are the advantages to buying a Franchise

1.  You are buying into a business that has an established track record.  You know up front whether or not it is a successful enterprise.

2.  The business already has an established name.

3.  Marketing cost is normally shared with the Franchiser.

4.  Cost of owning and running the business is established up front.

5.  You get assistance in establishing the business.  For example, finding a location, registering the company, financial help, etc.
 

What are the disadvantages to buying a Franchise

2.  Some Franchiser may not provide financial help.

3.  You have to come up with the whole start-up cost upfront.
 

Things to consider when buying a Franchise

1.  Not all Franchiser include in their startup cost charges for all the things you are required to established the business, such as the facility, furniture, equipment, personnel, business registration, etc.  Be sure to check what is included.

2.  Most Franchiser will allow you to buy more than one Franchise while others may not.

3.  Some will allow you to be an absentee owner while others will not.

4.  Some Franchisers will provide in house financial aid, while others will help you to find third party financing.  However, some provide not financial assistance at all.

5.  There is a Franchise renewal period which also requires a renewal fee.  The renewal period usually range from 2 to 10 years.

6.  You are be allowed to sell your franchise.

7.  Some Franchisers require that you have a certain amount of Net Worth and/or Liquidity.

8.  Most Franchiser provide training.  This is either free of charge or the cost is included in the Start-up Cost.

9.  Some Franchises take longer than others to establish.  It can take a couple of weeks or a couple of months.  Check with the Franchiser.