question.jpgIn Business Law

What are the advantages of buying a franchise?

The greatest advantage to making your business a franchise is that it gives you access to the larger company’s knowledge and expertise. For example, you get to follow their established business model, and have someone to turn to for help with starting and running the business. You also get to use their trademarks and get to take advantage a marketing campaign that is likely much larger than anything you could do on your own.

In exchange for these advantages, of course, you will have to pay an ongoing franchise fee, which may cost you thousands of dollars per month. Another disadvantage is that you are not really your own boss, as you have to answer (to a certain extent) to the franchisor, and this may defeat the purpose of why you wanted to start your own business in the first place.