The desire to own your own business is something many in California feel. Those with entrepreneurial experience, capital or investors may start from scratch and build a business based on an original idea or an invention. For many, those early stages of startup quickly become discouraging. Starting a new venture means creating a business plan, researching the market, testing and adjusting your product or service long before you can sign a lease on a building and welcome your first clients.
Many give up when they become impatient with the slow startup process, and others fail in their venture because they did not have the funds to keep going long enough to build a reputation for their businesses. For these and other reasons, you may be considering buying a franchise instead. However, it is important to step into this world with a solid understanding of the drawbacks as well as the benefits.
The good news first
While many people think of franchises as restaurants, you have hundreds of industries to choose from if you are considering this method of starting a business, including health and fitness, technology, pet care, and even education. Some of the factors that make franchises attractive include the following:
- You can skip the frustrating startup phase and jump right into operating your business.
- Your franchise may offer support for local marketing and advertising as well as national ad campaigns.
- You will have the support of your franchisor as well as the opportunity to network with other franchise owners.
- Your franchise may provide access to vendors and suppliers, which can cut your operating costs.
- You already have the name recognition and brand reputation established for you.
- The franchise corporate office takes care of researching the most effective methods of operation.
Of course, if one of your reasons for owning a business is to exercise your creative business mind, a franchise may not be for you. Franchisors are usually protective of their brands, and they don’t always appreciate when an owner thinks outside the box.
Are you financially and legally ready?
More practically, the startup cost of a franchise can be quite steep, and you will probably have to make royalty payments for the support you receive. You will also want to investigate a franchise thoroughly and read the paperwork carefully. Franchise contracts can be quite rigid, and you don’t want to be legally bound to fine print you do not understand. This is why it is a good idea to work closely with an attorney before agreeing to any business contract.