Advantages of a Franchise Business

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Franchises are the same as other businesses in many respects: the franchisee is similarly busy with everything from staff training and management to vital expenses such as Florida business insurance. What are some of the potential advantages and limitations of franchise business?

  • Branding. Sometimes franchisors can offer the franchisee a sense of security through branding strength and reputation.
  • Support. Franchisors can offer the franchisee support with a ‘ready-made’ business system. The franchisee might also be able to obtain help with lease negotiation, choosing a site, and other setup essentials. The franchisee might have additional support in the form of access to research.
  • Training. Franchisors often offer the franchisee initial training as well as ongoing assistance with managing the franchise.
  • Finance. Franchisors can sometimes offer the franchisor access to suitable finance.

Some potential limitations of franchises might include the following.

  • Less discretion. There might be less opportunity for franchisees to make their own business decisions as franchisees usually need to follow set operation guidelines.
  • Fees. There are usually fees that are payable to the franchisor.
  • Geographical limitations. Franchisees are usually confined to their area of operation; the choice to expand to other geographical areas is often limited.    

These are just some of the potential advantages and limitations of franchises. Franchises are not that different from standard business structures; business owners still have responsibilities ranging from employee management to budgeting for fundamental expenses such as Florida business insurance. Intending franchisees will want to carefully weigh up the benefits and limitations before signing on.


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