Multi-Unit Franchise Experts

Franchise Guide

Franchise Business: Problems Free Ownership

Starting a business from scratch is a difficult task, with owners having to manage everything from marketing to payroll to operations. One of the best ways to get into business ownership is through franchising. Franchising, when done correctly, offers the business owner security and the chance to hit the ground running. But before diving into a franchise agreement and making the commitment to become a franchisee, it’s important to understand the pros and cons of franchising.

In this article, the International Franchise Professionals Group (IFPG) – a membership-based franchise consulting network – examines the most common frequently asked questions (FAQs) about franchise businesses and explains why there aren’t any downsides to becoming an owner.

What Is a Franchise?

A franchise is a business relationship in which a franchisor allows a franchisee to use their name, brand, and system in exchange for a fee and other considerations. In most cases, the franchisor provides marketing, training, and other services to the franchisee in return for the royalty payments they receive.

What Are the Benefits of a Franchise?

Franchises provide many benefits to prospective owners, including a recognizable brand and established business system that is already in place. Here are some of the major advantages of owning a franchise:

• Reduced financial risk: Franchisees can start out their business knowing that they are starting with a concept that has already proven successful.

• Instant credibility: Established franchisors have established customer-base makes it easier for the business to get off the ground and build a solid customer base.

• Support: Franchisors provide experienced support, from training and business development to marketing and operational services.

• Brand recognition: Franchisors typically provide their own marketing campaigns and strategies that help drive customers to the franchise location as well as increase brand recognition.

Which Is Not a Disadvantage of a Franchise Business?

There are no disadvantages to owning a franchise business. It’s important to keep in mind that entering into any business agreement, including franchising, means a certain level of risk. But, because a franchisor has already proven that their business concept is successful, and they provide continued support and services to the franchisee, franchisees are able to manage their risks with minimal disruption to their business operations.

Are Franchise Fees Negotiable?

In most cases, the franchisor sets the fee structure and they are not negotiable. However, many franchisors are willing to provide financing to qualified franchisees in order to make the franchise agreement more affordable. It’s also important to note that the franchise fee is only a one-time payment and does not re-occur with the exception of some renewal fees and royalties.


Investing in a franchise business is an excellent way to transition into business ownership. With the support of a franchisor, franchisee owners can focus on the daily operations of their business without having to worry about navigating all the complexities that come with launching a business from scratch. By following a proven business system and leveraging the brand and recognition of the franchisor, franchisees can reap the many benefits of franchise ownership with minimal risks.


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