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Buying a Franchise

Pros and Cons of Buying a Franchise

Whether you’re looking for an investment option after retirement or as you engage in entrepreneurship, going for a Franchise always proves to be a good choice. Apart from having the opportunity to establish a business that’s already been ‘established’, franchising generally entails less work compared to having to put up a business of your own, from scratch.

Like every other venture, there are pros and cons to engaging in a Franchise Business.


Established Operating System. The franchisor makes everything easy for the franchisee in terms of operating system. Franchised businesses usually have a protocol to follow, composed of procedures and methods in its operation.

Training Program. Franchisor also offer training for the franchisee. This involves personnel and staff training, teaching them everything they need to know to operating the business from the pre-opening, daily operations, hiring and marketing practices, and so on.

Pre-Planned Marketing Strategies. Franchisees gain substantial advantages in having an established marketing plan laid out for them, allowing them to market their products and services most efficiently. There is no need to brainstorm, do a trial-and-error, and incur in unnecessary expenditures along the way.

Consistent Supply Line and Support. In a franchise agreement, the franchisor has the obligation to supply the franchisee with everything necessary for the business, eliminating the need for the franchisee to market for their supply.


Stringent Rules. With the great support that franchisors usually provide their franchisee with come the responsibility on the end of the latter. These rules could include, among many others, the need to maintain a specific volume/amount of sales and maintenance of an inventory.

Legal Documents. The franchise agreement usually carries with it a myriad of other documents and legal requirements that the franchisee may have to fulfill and oblige to. This requires the assistance of a legal professional, or a keen eye for reviewing the stipulations in every contract.

Dependent Reputation. As much as a franchise business benefits from the brand, this also implies that infractions in the reputation of the same may affect its franchisees. Even if a specific branch performs so much well than the others, as one branch becomes amiss in customer service, the rest could suffer the same consequences.

It is important to note that engaging in a franchise usually requires greater investment than having a start-up of your own. With this, studying your options in terms of franchising after retirement is a must.





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