When buying a franchise, what you’re doing is buying a developed business model that someone else has put together. People like them because it makes becoming a business owner easy and seamless. But that ease comes at a cost. That cost comes in the form of higher start up costs starting around $250,000, royalty payments around 8%, marketing/advertising fees and limited creativity.

On top of all that there’s no guarantee the business will do any better than it would if you had started your own from scratch. Should you buy a franchise or start your own? That’s a decision only you can make.

Here’s some pros and cons of buying a franchise.

PROS

- The brand is already established and recognized
- Good marketing support already in place
- Established and dependable suppliers
- Good training. The franchisor succeeds only if you do
- Supplied market reasearch
- Less risk

CONS

- Start up cost are often more
- Royalty and Marketing payment chew up profits
- Limited/No flexibility
- Locked in suppliers often at higher costs
- Often come with nasty contracts with poor terms