Understanding Disadvantages of Franchise

Do you  know that there are many disadvantages of franchise? Like other businesses, franchise has its own opportunity and risk. The success in this business is determined by your own effort. If you only trust the system without hard work, you cannot get success. Franchise only gives more opportunity since the system is proven. But, it does not guarantee success or profit. If you want to choose this business, you should be prepared with its consequences. Moreover, you should also understand the disadvantages of franchise.

Is franchise easy way to make money? Is franchise always profitable? The franchisers may persuade you with amazing fact and success related to their business. They make franchise sound so awesome and easy to do. The investors may think that the system can give them a lot of money instantly. The perception is wrong. There are many disappointing facts related to franchise. Is it easy to start franchise? The answer is “NO”. You should know the disadvantages of franchise. Whenever you buy franchise, you will get manuals or other documents that can help you start the business quickly. However, you must spend a lot of money to buy the manuals or the instructions every year. It may make franchise relatively expensive for common people.

Disadvantages of franchise may make you feel unhappy. When you decide to buy the franchise, you let your “freedom” taken away from you. The franchisers want you to do whatever they say. If you break the rule, you do not have chance to get opportunity from their business. You must do it and you are not allowed to change anything. You have no freedom to modify product and service from the franchise. Actually, every business should be modified in order to meet the local demand or expectation. If the franchise is not flexible, it cannot be suitable with the market. As the franchisee, you only get little flexibility to decide your management or marketing. The disadvantages of franchise show that this system is not interesting for true business owner. The real businessmen always have right to do anything for their business. They can use several marketing strategies or modify the products to meet local demand. The disadvantages of franchise may not let you use creative idea or different marketing strategy. You are not allowed to modify or change anything.

If you do not want to waste your money, you must not choose franchise as your business. Excessive expense is one of disadvantages of franchise. Every businessman has right to manage their finance or expense whenever they run business. Franchise encourages you to spend more budget since it make all systems look the same. You may spend more money to renovate the store and synchronize its appearance with all the rest.

What do you think about these disadvantages of franchise? You may think twice before you spend your money on this business. Franchise may not be suitable for true business owners since they have right to do anything to their business. Disadvantages of franchise may encourage new businessman to look for another opportunity.


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