Franchising Advantages and Disadvantages

Are you curious in going further into understanding the advantages and disadvantages of handling a business in franchising? In this article, it will discuss the specific benefits of the pros and cons of franchising.  –in my own words


If you want to start your own business, buying a franchise is the best way to go about it. It helps in getting some quick success, without having too much business knowledge or business experience.

Advantages of buying a franchise

  • The Federal Government keeps the Franchiser business tightly regulated.
  • Franchisors will have a genuine interest in your success.
  • The franchisor takes care of the marketplace review and determines the system to be successful.
  • The advertisement and marketing for the franchise is also done by the franchisor.
  • Franchisor also provides you with the supervision, training and any type of consultation.
  • All the systems are already there for you. These include the managerial, operational and accounting systems. These are already in place for you.
  • Franchisor provides the ongoing research and product development.

Disadvantages of buying a franchise

  • There are the franchiser royalties that you have to pay.
  • The contract also needs to be renewed with the franchiser after certain period of time, usually after a year.
  • The franchiser’s problems also become your problems too.
  • You have to buy the products supplied by the franchiser. You cannot go for the cost effective products available.

The advantages clearly outweigh the disadvantages, but before buying a franchise, you must take a note of these, and then decide whether buying a franchise will be good for you or not.

If you decide to buy a franchise, proper franchise management will lead you to quick and long lasting success. The franchise technology has grown significantly lately. You can use different franchise software, available in market, to make your franchising experience a much better and efficient one. These softwares simplify the nature of running the franchisor business model. The main features, good franchise software provides are data collection, corporate communications, administration, new store management, and marketing management, thus making your life easy.

Netsolace provides customized franchise management software and Franchise Software Technology solutions to optimize and automate the way your franchise system operates.

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What is Franchising? Basics of Franchising

What is Franchising? Basics of Franchising

The best way to break down the understanding of Franchising is improving the knowledge of what the basics of Franchising is. Gathering the right information and talking to the right people. You will succeed in Franchising your own business. – My own words.

The rest is an article that I found

In today’s world franchising is playing the biggest role in the entrepreneurial zone. When one thinks about franchising, food franchises like KFC and McDonald’s come to mind. But franchising is not just about foods. These days, where ever you go, you will find some business which is a part of some franchise network. In this article, I will help you explore the basics of franchising.

Franchising is a system, in which a business can expand. It helps in distributing the goods and services. It also helps in operating a business under a popular brand name. A franchisor or a business owner licenses its trade name (the brand) and its business methods (the way it operates) to a franchisee, who may be a person or a group of people. The franchisee has to agree with the franchise agreement.

The franchisor provides the support needed by the franchisee. The franchisee has to pay some initial fee and also a royalty, so that it could use the brand name and the business methods of that franchise.

Buying a franchise normally is a faster way to succeed as compared to starting your own business from scratch. But before starting, you should keep the following in mind:

  1. You will have to work hard to make it successful. Getting to work under a popular brand and with proven successful business models does not guarantee your success.
  2. If you think that buying a franchise will make you rich over night, you are thinking wrong. Not all franchises will be successful.
  3. You must have a good interest in the franchise you have bought. If you get bored with it later on, it will fail.

If you do franchising the right way and do proper franchise management, you will be successful, and your business will flourish. The franchise technology has grown significantly lately. You can use different softwares, available in market, to make your experience a much better and efficient one. These softwares simplify the nature of running the franchisor business model. The main features, good franchise software provides are data collection, corporate communications, administration, new store management, and marketing management, thus making your life easy.

Netsolace provides customized franchise management software and Franchise Software Technology solutions to optimize and automate the way your franchise system operates.

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The Roles and Goals of Franchisors

If you have ever wondered why franchising was different from buying a business or starting your own business? Well I wanted to share with you a article I found to highlight the goals and role of a franchise, and how it might be beneficial to you.

To browse franchise and other opportunities, visit our You Tube channel and take a look:

A franchisor is the entity that owns the franchising company. The franchisor is the one who grants the franchisee the rights to use the brand name, the trademarks and the business methods. The franchisee is the one who uses the franchisor’s brand and the franchisor’s business model and runs the business under franchisor’s business trademarks.

Different Types of Franchisors

Franchisors may be huge companies owned by someone having a lot of business experience, or they may also be the ones with no prior experience and they may have only one or two franchisees. So the franchise size and age varies:

· There are franchises which are owned by large public or private companies.
· Often the franchises are owned by someone who earlier was a franchisee. Later on he bought the franchise from the franchisor. Tom McDonnell is an example of such a franchisor.
· There are many small franchises too, who have just recently started to offer franchises.
· There are also some large franchise systems, which seem to be brand new.

Franchisors give the franchisees the necessary training and system so that the franchisees don’t have to do everything on their own. Franchisor has established the business over the time, and knows about the common mistakes, a new franchisee can make. So a franchisee gets to use the franchisor’s experience, and gets the success much earlier.

New businesses never fail because of the low quality of their products or services. The main reason of their failure is that they often make mistakes which they can’t recover from. A great franchisor on the other hand has made these mistakes but has survived. And as a result, now they have an established business process. A franchisee purchases the rights to use this successful business process.

The main reason a franchisor will assist you in getting success soon, is that he wants the whole system to grow and be profitable. A good franchisor provides a great system to the franchisee, which as a result gets long lasting success soon through effective franchise management.

The franchise technology has grown significantly lately. You can use different franchise softwares, available in market, to make your franchising experience a much better and efficient one. These softwares simplify the nature of running the franchisor business model. The main features, good franchise software provides are data collection, corporate communications, administration, new store management, and marketing management, thus making your life easy. You can get great success if you have effective franchise management.

Netsolace provides customized franchise management software and Franchise Software Technology solutions to optimize and automate the way your franchise system operates.

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Business of the 21st Century

Are you looking for the a profitable business without all the risks, franchise fees, or having to be in business on your own? Or maybe your looking for a business to build assets instead of liabilities just like Robert Kiyosaki always says.

Well, we are all looking for additional income these days, and the people who are involved in the business of the 21st century are winners, these people must win, winning takes sacrifice, and these are the people who will do the best.

So if your a person who must win, if you know the economy has moved on, if you want a business model of the future, if you want financial freedom than this business would be perfect for you.

Just take a few minutes and watch what Robert Kiyosaki has to say about it.  Its people helping people, which is a fabulous form of doing business, especially in these economic times.


Skype: Entrepreneurshop

Below are the top 5 reasons why success in Network Marketing  and Direct Sales is so atrocious.

Reason 1

The Rejection Razor

The Network Marketing business model, like most businesses, is based on relationships. In network marketing a new recruit is taught to contact people they know and have a preexisting relationship with. The trust factor is already built in because of the relationship that has long a go been established. The new MLM recruit approaches people they know with a mistaken belief and expects how their friends and family will react after seeing the presentation.  The new recruit feels they’ve located  the map to the golden treasure. They can’t wait to show their friends and family. After presenting the business to them, he is unprepared for the rejection, skepticism and  total dismay at how he could’ve become involved in such a scam, or industry. Many new recruits are not prepared for the objections they hear and then the perceived ridicule they encounter. The new recruit, who’s sole intention is to  share this new wealth generation strategy and system, gets slammed by people closest to him in his life. He just cannot understand why his warm market can’t see this glorious wealth opportunity he has shown them.

Reason 2

Network Marketing Opportunities Easy In Easy Out

In a majority of Network Marketing Opportunities it is just way to easy to get into. Start up costs are much lower in relation to a typical bricks and mortar industry. Even the entrepreneur who goes to the extend of setting up a company name, incorporating the business, getting business cards etc… his start up costs are still considerably quite low. With such low start up costs a majority of people view getting into a network marketing opportunity as a low risk investment. The start up costs usually depend on what the opportunity is, the structure of the business (sole proprietorship vs. incorporation), etc. Generally start up costs can range anywhere from several hundred to several thousand dollars. When the business does not do as well as planned, and cash flow gets tight, going out business is relatively easy. The new business owner uses up or gives away any inventory that is on hand. There are no lease or rental contracts to worry about, no employees to terminate. All you have is the owner who shuts down the business and walks away.

Reason 3

Network Marketing And Greed

A majority of people who see the opportunity right off the bat are blinded by the potential income they can make. They see the potential income and their greed glands begin to pulsate. I mean look at the scenario being drawn out for them: they recruit three people who go out and recruit three and in six months they have a network of people selling product and recruiting. They can now live the high life and sit back and collect income. The network marketing industry must accept some responsibility for getting every ones greed gland swelling. How many ads are there, or presentations that show a potential prospect how easy it is to make a considerable income in such a short period of time. Sure it can actually happen, (and has) however it must also be recognized that a lot of hard work, time and effort go into creating such success. It is really funny that the majority of people who sign up for their MLM business rarely see or pay attention to the earnings disclaimer shown. You know the one that shows how much the average Network Marketing representative actually makes in a year. Always ensure any new potential recruit sees and  understands what that earnings disclaimer means. Failure to do so usually leads to the scenario I described in reason two of easy in / easy out in the network marketing industry.

Reason 4

Lacking in Necessary Business Skill Sets

A majority of new Network Marketers basically are not business minded or oriented. They lack the necessary communication or marketing skill set to get their businesses up and running quickly. Keep in mind that the Network Marketing business model is not the normal business model people are accustom to. So they jump in with both feet and tremendous exuberance. Unfortunately they are offered limited training on how to effectively invite people, how to handle objections etc. Then when the new recruit decides to go the cold market route, by advertising on the Internet, he is stunned when he suddenly realizes he must learn how to purchase and operate the following: a domain name, web hosting, auto-responder programs and learn copy writing and advertising techniques to name a few. Realistically the majority of people who become involved with Network Marketing have no real concept on how to effectively operate a business. Then there are the individuals who don’t see it as operating a business to begin with. They view their network marketing or direct sales opportunity as a hobby rather then a potential income producing business. Learning to operate a business is a skill anyone can learn, they must be prepared to learn new things and build their business over a realistic time frame.

Reason 5

Mind Set and Undying Faith

This reason to me is the number one primary reason the success rate in Network Marketing is so low. We know there are individuals with some tremendous success stories in the Network Marketing industry. Ask any one of these successful people and they will gladly tell you at what cost this success came with. They will speak of the many hours of work, sweat and toil they put into building their organizations. All the trainings they attended and all the over and above’s of doing this business. Many have done this while still working 40 hours a week, tending to family and household matters.They went in with the proper mindset to develop a huge profitable organization. All the while having an undying faith in the role they play to generate success in Network Marketing for themselves and their team.

Learn to avoid these pitfalls in your Network Marketing or Direct Sales business and you will generate enormous success.

If you would like to learn more about generating and actually achieving success in Network Marketing go to resource box below and sign up for your Free10 Day Success Plan.

Learn more business building strategies at and be sure to pick up your FREE report “The 7 Myths of Network Marketing” Ron Bragagnolo is a successful home based business entrepreneur in the field of network and internet marketing.

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These 6 Steps To Network Marketing Success:

can make a significant difference in your life if you choose to take action by implementing them daily. They were distilled from the teachings of one of my mentors by the name of Bill Bartmann who happens to be a Multi-Billionaire and was recognized by INC. Magazine as the 25th wealthiest person in the Unites States so please make sure you pay close to attention to them since they are without a doubt one of the pillars of not only success in network marketing but in fact success in life itself.

One of the truly fascinating things about these steps is that you don’t have to buy anything nor do you have to purchase admission to an overpriced seminar to obtain them. They are in fact within your grasp right now and more than likely in some measure you have used them without being cognizant of doing so.

Without any further hesitation here is how you can create Network Marketing Success in 6 steps:

1. You have to expand your horizons and think BIG:
I am often amazed at how many people sell themselves short in life and in business. You can achieve anything that you want in life if you are willing to pay the price for it. Why not shoot for the stars?

I hear it in the voices of so many people that I speak to on a daily basis that seem to have lost their zest for life. Like they don’t deserve to be wealthy or travel the world via 1st class accommodations.

2. Undoubting belief in yourself is required:
Guess what? There is only one shot at making it big in this life and your living it right now. If you don’t believe in yourself how can you expect anyone else to? All success in network marketing first starts with that little seed of faith that maybe just maybe this industry can work for me too.

3. Create Your Mastermind:
There are so many opportunities for powerful partnerships and collaborations all around us every day with people who truly want to help us succeed. It is our responsibility to ourselves and our families to make sure that we are sharing what it is that we want since these same individuals do not have ESP.

4. Execute the plan:
Bottom line is that the best laid plans are useless unless you get up off your butt and hustle. There are plenty of wannabees out there who are building empires in their minds with no real world results. Do you really want to be one of those folks?.

5. Focus is the key:
There is no heavy hitter in this industry who is worth their weight that did not focus all of their energies into one goal & one company. Because there are so many tempting ways to take your business focus is truly essential to creating true success.

6. Giving Up Isn’t An Option:
In life and most particularly this industry you will run into things that you do not expect. You will experience the ups, downs, and everything in between but as long you remain diligent in the development of your skills and the application of what you have learned success is not only likely it is guaranteed.

The really great part about this formula to success is that each and every step is entirely up to you. If you really want to experience the life of your dreams, travel the world, achieve financial independence or just bring your spouse home to stay with the family then guess what? It is entirely up to you.

These 6 Steps to Network Marketing Success will give you what you need to get started down the road to success in the industry but the cold hard truth of the matter is that if you don’t know what the MLM Prosperity Secret is and how to apply it…. you might as well call it quits right now.

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Are you a Ace of Sales?

Have you ever wondered how to increase your sales?

Well, I have provided a clip, to share some principals with you to help you with your philosophy. I hope this finds you well.

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Guest Post – Todd Weiss CFA

The follow post was written by Todd Weiss, CFA.

Sunshine Consulting LTD

The Franchise Disclosure Document (FDD) – An Overview

If you’re serious about buying a franchise, at some point you’re going to receive and review a Franchise Disclosure Document (FDD). The purpose of the FDD is to give the potential buyer detailed information on the investment details, ongoing fees and obligations of both the franchisor and franchisee.  According to federal law, governed by the Federal Trade Commission (FTC), you must receive a copy of the FDD a minimum of 14 days prior to signing any agreement with the franchise.

The FDD provides an overview of:

– The management structure and history of the franchise

– Experience of key personnel

– Litigation history

– The initial investment and ongoing fees

– Obligations of all parties

– List of current and former franchisees

– Trademarks, patents and copyrights

– Details on training and support

– Financial performance (If the franchise elected to provide)

– The Franchise Agreement

The FDD format is standard and contains 23 items.  Each item provides specific details on the franchise opportunity.  This document is typically drafted by an attorney and will contain a lot of legal phrases and definitions.  You should have a qualified franchise attorney review the document as they can help explain what is being disclosed and more importantly, negotiate the franchise agreement.  Some of the more seasoned franchise systems will not negotiate the document.  In any instance, you will want to understand what you’re signing to be aware of the risks and obligations of the franchise agreement.

Here’s an overview of each item:

Item 1. The Franchisor and Any Parents, Predecessors, and Affiliates: This section explains the history of the franchise.

Item 2. Identity and Business Experience of Key Persons running the franchise.

Item 3. Litigation History – Details of any outstanding lawsuits

Item 4. Bankruptcy History – Details of any bankruptcy history of the franchise

Item 5. Initial Fees – Franchise Fee and any other fees required when signing the agreement.

Item 6. Other Fees and Expenses – Details on the ongoing royalty, advertising and any other ongoing fees.

Item 7. Initial Investment: An Estimate of the initial investment to start the business

Item 8. Restrictions on Sources of Products and Services

Item 9. Obligations of the Franchisee –

Item 10. Financing Arrangements – Details of franchise provided financing.

Item 11. Obligations of the Franchisor

Item 12. Territory – Details on the territory awarded and what protections are provided.

Item 13. Trademarks – Details on franchise trademarks.

Item 14. Patents, Copyrights, and Proprietary Information

Item 15. Obligation to participate in the Actual Operating of the Business – Details on how much time you are required to operate the business.

Item 16. Restrictions on Goods and Services Offered by the Franchisee

Item 17. Renewal, Termination, Repurchase, Modification and/or Transfer of the Franchise Agreement, and Dispute Resolution

Item 18. Public Figures – Are their any public figures endorsing the franchise.

Item 19. Financial Performance Representations (FPR or Earnings Claim) – Details of the financial performance of the model.  Franchises can elect TO NOT make an FPR.

Item 20. List of Franchise Outlets – Number of current franchise locations as well as the number who have entered or left the franchise.

Item 21. Financial Statements of Franchisor

Item 22. Contract – The Franchise Agreement

Item 23. Acknowledgment of Receipt

The FDD is only part of your due diligence process.  When considering franchise ownership there are several items to consider.  Will the franchise work in your market?  Do you have the ability to own and operate the business?  Is the business viable?  Will you be happy owning and operating the business and does it fit with your ideal lifestyle?  I recommend speaking with a qualified franchise attorney, CPA and Financial Advisor.  They can help you with your due diligence, determine suitability and formulate a strategy for financing.

Sources –, Franchise,

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