The Franchise Business Model: The Pros And The Cons – Episode 2 – Part 2
Making the decision to move into franchising, whether you’re buying in or wanting to allow others to purchase your business model, is a big decision and it’s not one that should be taken lightly. Before you make the move, there are some important things that you need to know. In this video series, franchise coach, Terry Powell, and business coach, Clay Clark, discuss all of the pros and cons that you need to know about the franchise business model. When you’re trying to decide how to invest your money, there are a few different options you may look at. You might consider the stock market, or mutual funds, or a number of other investments, but more often than not, you might consider investing in a business opportunity. With franchising, you have the opportunity to make a larger return on your investment than many other avenues allow. Another benefit to franchising is that when you buy into a franchise, you receive an incredible amount of support and training from the corporation. The franchisor wants to get the business up and running as quickly and effectively as possible, because the sooner the business turns a profit, the sooner the franchisor gets their initial investment back. Most franchises start out with low royalties in the beginning and the rates rise as the business becomes more profitable. Essentially, the more support that is provided to the franchisees, the more profits the franchisor will make so it ends up being a win-win for both members. The only negative to this, is that sometimes franchisees will complain that they receive more training than they want from corporate. It’s easy for someone to say that they have all of the training that they need, but good franchisors have ongoing training to help the franchisee with consistency in their operations. Want to hear the rest of the pros and cons to the business model? Tune into the rest of the series here on Thrive15.com.
