Nearly everyone dreams of owning there own business at some point in there life. Owning a franchise can make those dreams come true for most. There a number of benefits that a franchise can offer that a start up business lacks. In addition, there are also some drawbacks that must be considered.

A franchise can be wonderful for eliminating the learning curve in an industry. The majority of businesses fail within the first few years. Many of these businesses were opened by people that had no prior experience in the industry and had no idea what it took to make the business viable. A good franchise will have a much higher success rate than a comparable start-up.

Some of the benefits of owning a franchise include training, support, and coop advertising. Franchises offer new owners comprehensive training in all aspects of the business to ensure success. In addition, after the initial training, most franchises offer ongoing support through franchise reps and often times other franchise owners. Finally, a great advantage of franchises is coop advertising. Many franchises will match advertising dollars to help build business.

There are certain costs associated with a franchise. Franchises make their money by charging fees for the use of their name and business systems. Fees can vary between franchisors. Some charge a flat monthly fee while others charge a percentage of sales. In addition, some franchises produce of supply the products used by the franchisee. They may mark up the products for additional profits. If buying a franchise that forces you to buy your products through them, it is a good idea to shop similar items at competitors to make sure the costs are reasonable.

Franchises do have their limitations. Franchise fees can push the cost of owning a business higher, but you should be benefiting from the training and support. Also, before making any business decisions a franchise will often require the franchisee to obtain permission. Finally, when planning to sell a franchise, a franchisor will often have to okay a sale before the purchase can be completed.

So owning a franchise can have its ups and downs. Franchises offer training, support, and a shortened learning curve. On the other hand, franchises do have some limitations such as increased fees, set boundaries, and limits on selling. No two franchises are equal, even in the same industry. Owning a Subway franchise can be totally different from owning a Quiznos franchise. A franchise can be a great investment but must be carefully evaluated.