Disadvantages of Franchise Ownership

                                        

Do you know what should be the two major reasons for buying a franchise? Advantages it’s hard for most franchise seekers to get?

                       

One is name recognition. The other is the training that they ought to give you. However, few franchisers give you real name recognition and training.

                       

Moreover, franchises are not cheap. You pay up front for a license, and the royalties thereafter will be a big cut of your bottom line. In fact, those royalties may equal half your net profits, if you ever manage to get any real returns for yourself.

                       

I usually don't recommend the purchase of a franchise because franchisees hardly ever get true name recognition, nor the required training from the average franchiser. Only a handful of franchises are worth buying. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)