The Franchise Business Model: The Pros And The Cons – Episode 2 – Part 1
Have you been thinking that franchising might be the next best step for your career? If you’re curious about what all franchising entails, you’ve come to the right place. In this series with franchise coach, Terry Powell, and business coach, Clay Clark, they discuss valuable information on all of the pros and cons to franchising. One thing that may need to be considered when purchasing any franchise is that if for some reason the public recognizes your brand in an unfavorable way, that may reflect poorly on you. Situations are going to arise that may be troublesome no matter what industry that you’re in. One of the major reasons why you have strict guidelines and guardrails that you’re held to in a franchise is to protect the brand from getting a bad reputation. When you’re thinking about investing in a business, a benefit to franchising is that it’s often easier to secure financing to open a franchise business versus an independent business. There are many reasons why this is the case, but most often it’s easier to secure funding because there’s already a sense of security for the lender because the business has already been replicated and duplicated before and there’s a track record to prove it. The only downside to this is that franchises often require more money initially than an independent business would. One of the biggest fears that many entrepreneurs face is the thought of, “How am I going to get that much money to buy in?”, but what they often don’t realize is how easy it is to get funding from lenders, especially when you’re leveraging your reactive investments to turn them into proactive investments. For more helpful tips and nuggets on the pros and cons to the franchise business model, check out the rest of the series right here on the Thrive15 platform.
