Written By: Brandy Miller | August 1, 2017 | No Comments
For entrepreneurs who don’t want to reinvent the wheel, purchasing a franchise can seem like a great option. Franchises often advertise themselves as businesses that take the guesswork out of setting up a new company. By buying into a franchise, you’re buying into an established brand and business rather than having to create a company yourself from scratch. Before deciding to purchase a franchise, however, you will want to consider both the pros and cons of this type of business model.
The Pros of Franchises
A good franchise lawyer near Reading, PA can tell you local franchises have many benefits. One of the biggest benefits is that you will get support and systems. For example, you may get financial software, marketing and advertising templates, marketing support, real estate support and other forms of systems you can follow to build your business. You won’t have to research each part of your business separately, and much of the decision-making is already done for you.
Franchises also offer training to help you get started, which can be valuable if you have never set up your own business before. You can learn from the company and even from other entrepreneurs who have their own successful franchises with the same company.
Finally, franchises often are attractive because they help you build on a known brand. By purchasing a franchise, you’re essentially purchasing into an established company that may already have a loyal following.
The Cons of Franchising
One of the biggest drawbacks of franchises is the cost. The average franchise comes with a $25,000-$35,000 fee, and some come with much larger fees than that. In addition, you will need to pay royalties or a percentage of your sales, which can quickly add up.
While many new business owners are attracted by the systems of franchises, the rules of franchises can also feel stifling. You need to purchase from approved suppliers as well as follow advertising rules set forth. These rules can even affect to whom you can sell your franchise. If you decide to close your business, the franchisor will generally need to approve the buyer, which can make it harder to get out.
Before deciding on a franchise, you will want to speak to a business lawyer near Reading, PA to review your options and to make sure your business is protected. If you’d like to speak to an attorney, contact Miller Law Group, PLLC for a consultation. Local businesses and franchises turn to us when they need legal support and representation.