The bottom line is Franchising is not for everyone. Below is a list of some of the major disadvantages of buying a franchise business that you might want to seriously consider before starting the process of finding and buying a franchise.
Lack Of Control: When you buy a franchise business you are going to be subject to significant restrictions, rules, and procedures (as per your franchise agreement) about how to run your business. So if its absolute freedom you are seeking when owning a business, franchising is probably not for you.
Franchise Fees: When you buy a franchise business you are more than likely going to be subject to ongoing royalty fees that in most cases are going to be deducted off the top of your your monthly gross sales. Depending on the terms of your franchise agreement, you may also be subject to other fees regarding marketing, products, etc.
High Up-Front Costs: Because its a turn key business opportunity, starting a new retail franchise such as fast food business is going to entail a significant up front investment that may take many years to pay back.
No Guarantee For Success: Although buying a franchise business is considered less risky than doing a start-up business on your own, it is certainly does not provide a guarantee for success. Franchise businesses do fail all the time for a number of reasons.
Ready to start research franchise opportunities? You can star there by reviewing this list of top franchises for sale.