The Cons of Franchising

<h1>The Cons of Franchising</h1>Author: <a title="mattmossop" href="http://www.articlesbase.com/authors/mattmossop/163332.htm">mattmossop</a> The Cons of Franchising Since beginning my internet marketing business, I’ve spoken to and dealt with a few former franchise owners... none of whom had anything particularly positive to say about franchising. In particular, I’ve discussed the subject extensively with my current personal mentor (one of the current top internet marketers in the world... yes officially... it is ranked). This is a guy who lost two franchise stores and went USD $500 000 into debt soon after the recession began. The following article will discuss some of the major cons involved with franchising. First and foremost, investing in a brand-name franchise is going to set you back somewhere in the hundreds of thousands of dollars. Now I understand that you’re investing in a potentially lucrative business, however, this is quite a massive sum of money to be investing in something with such an uncertain future. Why did my mentor fall $500 000 into debt? Well, the economy took a turn for the worse, and his franchises went with it. This was only a few short months after making his initial investment, and there simply wasn’t anything he could do to keep the business afloat... the economy was bad and people were spending less and saving their money. Many other franchisees and small business owners were forced to sell their businesses soon after the economy went down the tubes. Now if you do get your franchise up and running, it’s certainly not the cakewalk many people believe it to be. Yes there are company systems in place to facilitate the running of the business, and a brand name will help you attract extra customers... but that doesn’t mean you can simply “plug in” to the system and let it run for you... there’s still going to be quite a bit of hard work involved. Franchises are definitely NOT “get rich quick” opportunities, and are by no means a guarantee of success, no matter how well-known the franchise you may be buying into. Moreover, the hassle of dealing with employees exists. Who do you generally see working in franchise stores? That’s right... teenagers... most of whom like to fool around on the job, and don’t care which way business goes... good or bad. Lastly, if you’re looking at buying into a franchise, it’s likely you’re looking to be your own boss. While as a franchisee you may not have to answer directly to anyone, you’re far from being able to fully-control the business. Simple rules such as wages, hours of operation, suppliers (you’re generally relegated to buying from the franchisor... no shopping around for cheaper and better deals), and so on, are out of your control. This system which helps you run the business is also going to greatly limit your flexibility as a business owner. This article is not to say that every franchise is bound to be a failure, or that they’re impossible to run, just that they are simply not the sure-fire way to success many people think they are. Other, simpler, options do exist in the form of self-owned businesses. Online home-based businesses can be one incredibly lucrative option... an essentially recession-proof option without the requirement of a massive investment, employees, and overhead. Do your due diligence however and search out a legitimate home-based business as there are quite a few scams out there today.About the Author: Matt Mossop is a professional internet marketer and successful home-based business owner. Looking for an Alternative Buying a <a href="http://mossopblog.com/main/franchising?t=abfranchisingcons">Franchise Store?</a> Check out Matt's Popular Blog to see how he's helping people like you start their own lucrative home-based businesses => <a href="http://mossopblog.com/main/franchising?t=abfranchisingcons">MossopBlog.com</a>Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/franchise-articles/the-cons-of-franchising-1305774.html" title="The Cons of Franchising">The Cons of Franchising</a>

The Cons of Franchising

Since beginning my internet marketing business, I’ve spoken to and dealt with a few former franchise owners... none of whom had anything particularly positive to say about franchising. In particular, I’ve discussed the subject extensively with my current personal mentor (one of the current top internet marketers in the world... yes officially... it is ranked). This is a guy who lost two franchise stores and went USD $500 000 into debt soon after the recession began. The following article will discuss some of the major cons involved with franchising.

First and foremost, investing in a brand-name franchise is going to set you back somewhere in the hundreds of thousands of dollars. Now I understand that you’re investing in a potentially lucrative business, however, this is quite a massive sum of money to be investing in something with such an uncertain future. Why did my mentor fall $500 000 into debt? Well, the economy took a turn for the worse, and his franchises went with it. This was only a few short months after making his initial investment, and there simply wasn’t anything he could do to keep the business afloat... the economy was bad and people were spending less and saving their money. Many other franchisees and small business owners were forced to sell their businesses soon after the economy went down the tubes.

Now if you do get your franchise up and running, it’s certainly not the cakewalk many people believe it to be. Yes there are company systems in place to facilitate the running of the business, and a brand name will help you attract extra customers... but that doesn’t mean you can simply “plug in” to the system and let it run for you... there’s still going to be quite a bit of hard work involved. Franchises are definitely NOT “get rich quick” opportunities, and are by no means a guarantee of success, no matter how well-known the franchise you may be buying into.

Moreover, the hassle of dealing with employees exists. Who do you generally see working in franchise stores? That’s right... teenagers... most of whom like to fool around on the job, and don’t care which way business goes... good or bad.

Lastly, if you’re looking at buying into a franchise, it’s likely you’re looking to be your own boss. While as a franchisee you may not have to answer directly to anyone, you’re far from being able to fully-control the business. Simple rules such as wages, hours of operation, suppliers (you’re generally relegated to buying from the franchisor... no shopping around for cheaper and better deals), and so on, are out of your control. This system which helps you run the business is also going to greatly limit your flexibility as a business owner.

This article is not to say that every franchise is bound to be a failure, or that they’re impossible to run, just that they are simply not the sure-fire way to success many people think they are. Other, simpler, options do exist in the form of self-owned businesses. Online home-based businesses can be one incredibly lucrative option... an essentially recession-proof option without the requirement of a massive investment, employees, and overhead. Do your due diligence however and search out a legitimate home-based business as there are quite a few scams out there today.

Matt Mossop is a professional internet marketer and successful home-based business owner. Looking for an Alternative Buying a Franchise Store? Check out Matt's Popular Blog to see how he's helping people like you start their own lucrative home-based businesses => MossopBlog.com

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Article Tags: online business, home based business, franchising, franchise, franchise business, buy a franchise

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