A franchise is a business model that allows individuals (franchisees) to operate a business under the name and system of established company (franchisor). The franchisee generally pays for the right to use the franchisor’s brand, business model and operating procedures. Here are the key advantages and disadvantages of owning a franchise business:
Franchising can be a lucrative business model, offering the benefits of brand recognition, support and a proven business system. However, it also comes with significant costs and restrictions. Prospective franchisees should carefully evaluate the franchise opportunity, understand the terms of the franchise agreement, and assess their willingness to operate within the franchisor’s guidelines before committing to a franchise business.
