Franchising Pros & Cons
The advantages of franchising are widely advertised by franchisors. Increased earning potential, a more flexible work schedule, a proven track record of success. However, the franchise model isn’t for everybody. Although you are in business for yourself, you will need to follow concrete business systems and operate within brand guidelines which for some isn’t suitable.
Our guide to the pros and cons of franchising should help you make an educated decision on how to proceed.
Pros & Cons of Franchising
Advantages of Franchising
Reduced Risk of Failure
- The 2018 Natwest Franchise Industry Report conducted by the British Franchise Association states that fewer than 1% of franchises per year are failing due to commercial failure.
- Franchise brands only exist due to their proven business models. They have made the mistakes and are aware of what is required to build a business within a specific industry.
- Due to the proven nature of their business models, established Franchisors will have existing relationships with high-street banks and funding partners.
- When you start a franchise you own and operate your business> However, you can be safe in the knowledge that there is a team of professionals behind you to guide you in the right direction.
- Most franchise brands provide training upon purchase of the business to ensure you start in the best possible position to succeed. The best franchises will also provide ongoing training and development.
- Neighbourly brands benefit from an in-house marketing team to support franchisees in their local campaigns. Franchisees benefit from national marketing campaigns conducted for the benefit of the whole group.
A Fast-Track into Business
- With the systems, branding and support structure already in place, a franchise enables you to achieve business ownership, and ultimately success much quicker than if you were to start on your own.
- With a franchise, there is no need to worry about creating a logo or crafting expensive marketing materials. This has already been done by the franchisor!
Network of Like Minded People
- A franchise network puts you in touch with other like-minded business owners. You can discuss shared challenges within your business as well as celebrate achievements.
Legal and Accreditation
- One of the biggest challenges facing startup businesses is attaining the required accreditations. If your franchisor doesn’t already have the necessary qualifications or memberships, they will help you to achieve them.
“Every franchise comes with different benefits, perks and challenges, therefore it is important to consider every aspect and make an educated, timely decision.”
Pros & Cons of Franchising
Disadvantages of Franchising
Following a System
- For most, following a franchise system is exactly why they chose a franchise, but it does create restrictions on what you can do within your business.
Risk of Failure
- As with any business, it is still possible that your franchise will fail. It’s important to fully apply yourself and understand the brand you’ve bought into.
Length of Franchise Agreement
- Typically, franchise agreements last between 5 and 10 years. For those unfamiliar with franchising, this can seem like a lengthy commitment. Without a doubt, a franchise is a long term investment and will require a significant commitment to achieve your long term goals.
Costs to Start Up
- Starting a franchise demands a significant investment. Regardless of ambition, not everyone is able to raise the funds required to start their own business.
Yasser began his Drain Doctor journey as a plumbing apprentice but recognised the franchise business as an opportunity for the future.
The Neighbourly franchise group holds five UK brands for you to explore. Aire Serv, Bright & Beautiful, Countrywide Grounds Maintenance, Drain Doctor and Mr. Electric all have available areas across the UK for you to begin your journey as a franchise owner.