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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  1. Great collection of helpful points regarding franchise purchasing! Thanks for the post.

  2. Of course if the franchise advantage goes to you automatically the franchise disadvantage will affect you & in bot h conditions we should be careful to keep the level of a good franchise & try to make it more successful & careful to ovoid or eliminate all disadvantages by treating all problems affecting the franchise !!!

    Thank a lot Mike

  3. I think proper franchise management is the key phrase here! Great advice!

    • Social Media Guru
    • August 6th, 2010

    Nice vid. :]

  4. Great Video and very simple advice!! Thanks for the information always that even I (non-business person) can understand! 🙂

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