Buying up a franchise can be a great opportunity. But before taking such a huge step, you need to consider the various advantages and challenges involved in the undertaking:
CHALLENGES
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- You have to work within a particular system of operation that you may not feel comfortable with. Making changes to the system across the entire franchise can be exhausting and time-consuming.
- There is an element of risk that falls on the shoulders of the franchisee and how well he or she is able to manage the established business and succeed.
- Having false expectations of the business being easy to manage or immediately profitable can result in disappointment for the new owner of the franchise.
ADVANTAGES
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- New franchisees need expert training to be successful, and this is provided by the franchisor. Training programs are specially designed to cover all the facets of taking on the new business and sets you up for future success with the enterprise.
- As the franchisee who bought an existing franchise, you have the right to use the franchisor’s purchasing power and advertising. You can also ask the franchisor for help managing the direction of advertising. Costs of advertising can be shared between two locations that are close in proximity.
- The franchisor is able to provide ongoing research and development results so that new products made available through the franchise have years of research and experience to ensure they are well received.
- Buying a franchise makes you a part of a large family of businesses that work closely together. This type of wholesome collaboration can produce the most effective ideas from employees who have been serving the franchise in multiple locations for years.
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©2017 Kahala Franchising, L.L.C. All rights reserved. All other trademarks reference are the property of their respective owners. The information provided herein is for informational purposes only and is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise; nor is it directed to the residents of any particular jurisdiction within the U.S. or elsewhere. The following states currently regulate the offer and sale of franchises: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, and WI. If you are a resident of one of these states, or of a jurisdiction that has similar requirements, we will not offer you a franchise until we have completed the applicable registration or obtained the exemption from registration, and completed the applicable disclosure requirements. Regardless of what state you reside in, an offering can only be made by a franchise disclosure document.
