Negatives of Buying a Franchise

Why should you buy a franchise? The main purpose is to get a valued company name and expertise. But you can probably acquire a suitable name and expertise at no franchising cost.

I have discussed this in the past. Buying a franchise may make sense only if you get a highly recognized brand name and you get special management expertise.

Understand that the usual upfront fees and the royalty you pay on sales, that cover whatever management training and materials you receive, will probably represent about half your net earnings.

Many franchisees eventually form groups with other franchisees, to sue over contract terms because they are unhappy with their arrangements.

Think clearly before you make an expensive franchising decision. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at twitter.)