Start Up Business Opportunities: Franchises

Start up business opportunities are difficult ventures to succeed with. You will need a great business plan, operating knowledge, funding and marketing support, among other essential functions. If you are not prepared to take this on yourself, consider a franchise option. With a franchise, you are given the basic outline of a successful business. You gain the benefits of ownership and independence, but you are supported by a much larger corporate network.

Franchise Business Expense

Starting a business is expensive regardless of whether you pursue a franchise opportunity or not. One difference with a franchise, though, is the expense is predictable. You will be given an exact cost quote to purchase a franchise location of your company of choice. This figure is non-negotiable, and you will know exactly what you are getting for the price. In comparison, when you start your own business from scratch, you will only have a cost estimate to operate off of. You may know your initial expense to build a website, sign a lease or even purchase your equipment. You will rarely be able to anticipate costs that go out the window for marketing, insurance and other necessities.

Franchise Business Application

When a company decides to sell a franchise, it need to keep its company name in good standing. After all, franchise owners are primarily buying the right to use a business's name, so the name must be protected and remain valuable. For this reason, a company will not give out its name to just anyone. You will have to apply in order to purchase the rights to the name. Your application will include information such as your business experience, education and other qualifications. You may need to provide your own unique business plan.

Franchise Business Benefits

If you can afford a franchise and you are approved for purchase, you will realize immediate benefits. These benefits include:

  • The reliance on an established brand: You will not have to work to create brand awareness. For example, purchasing a franchise location of a Starbucks, Pinkberry, McDonald's or other location provides you with immediate recognition the day your sign is in the ground.
  • The support of a corporate marketing effort: You will not be designing your own advertisements, creating your own logo or purchasing nationwide commercial spots. This is all done for you. You will only be responsible for marketing the services of your unique location.
  • The backbone of a successful business plan: You will be shown just how to put the corporate plan into action. You will not need to recreate the wheel in order to get your franchise on the ground.

Franchise Business Drawbacks

When you purchase a franchise, only one location is yours for the owning. Within this location, there will be many restrictions as to your independence with the corporate name. If you are truly looking for an "entrepreneur's" environment, a franchise will not give you that freedom. Instead, you will always be following a corporate manual to keep brand consistence. Some franchisees may eventually become frustrated with these limitations.

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