The Basics of Small Business Franchises
A Home Business Article Contributed by Sarah White
The Basics of Small Business Franchises
If you're looking for a small business opportunity but aren't sure you want to take on the risk, time, effort and financial obligations of starting your own small business from scratch, you should consider small business franchise opportunities. The franchise is a combination of your enthusiasm and business savvy with an established name, product and marketing plan, which can be a perfect fit for your needs.
What is a Small Business Franchise?
There are basically two kinds of small business franchises. You can buy the right to use the name of a larger company for your store or business but basically run and manage your franchise the way you like, or you can buy into a business format franchise, which gives you rights to the name, marketing plans and products of the larger company as well as often including site selection and training help.
Starting your small business as a business format franchise really gives you all the help you will need to get your business off the ground quickly. There will be less room for creativity in this type of agreement, but there is more security because you feel the presence and support of the home office of the franchise.
Why Should I Start a Small Business Franchise?
As in any decision of what small business you would like to start, getting into a franchise agreement has its pros and cons. On the positive side is that you can start a business relatively quickly, you will have the name and product recognition of the franchise and usually the support of a larger business structure that is looking out for your success as well.
If your first franchise of a store or restaurant is successful, you may have the opportunity to turn your small business into your own mini-chain of regional franchises. The initial cost might be less than starting up your own small business, and your risk is probably reduced by opening a franchise rather than starting your own business.
You might find the lack of flexibility in a franchise stifling, as the franchisor might have the right to select sites and tell you what products you can serve or sell, what hours you must be open and exactly where in your region you can operate.
How Do I Know a Small Business Franchise is Right for Me?
Consider your business goals. Is it more important to you to have control of your own small business or do you just want to start a new business quickly? Will the franchise provide you with training? Do you have enough money to pay the franchise fee? Is it a business you like and think you will be comfortable and happy working for in the long haul?
Only you can make the decision which business opportunity is right for you, but if you want to get off the ground quickly, require security and don't mind working for a larger corporate entity, starting a small business franchise could be the right opportunity for you.
