What Makes The Top Franchise Opportunity?

puzzle of a business handshake, choosing the best franchise opportunityMany people facing retirement consider buying a franchise. But which is the top franchise opportunity?

First, let's be clear about what a franchise is.

Basically, you pay a fee, or a series of fees, to join a company as a franchisee. In return, you get the use of a brand name and a proven format.

Or course, there's more detail, but the fee(s) and the system are at the heart of the franchise system.

Before you decide on which is the top franchise opportunity, let's look at the general pros and cons of any franchise business.

Franchise Opportunity Pros

Franchises are popular because of the positive features associated with them. There are two major benefits of becoming a franchise owner.
  1. Name Recognition
    With busy lives, many people look for a well-known brand when buying goods and services. When you join a franchise as a small business owner, you have instant recognition because you operate under a recognizable brand. Potential clients know what to expect when they come to you, so they come willing to take you at face value.

  2. Training and Support
    For someone just starting out in business, a franchise offers the chance to own a small business with the support of a large organization. The following is a list of things many franchises offer.
    • Help finding and evaluating a location,
    • Initial and on-going training,
    • Help with management, marketing, and personnel issues,
    • Newsletters,and
    • A toll free number for emergency help.

Franchise Opportunities Cons

Like anything in life, franchises come with a cost. Before you decide which is the top franchise opportunity, consider the downside of any franchise.
  1. Cost
    You will pay an upfront fee, usually thousands of dollars. After that, you may also pay royalty fees. In addition, most franchisees pay into an advertising fund. You have little or no control over these costs.

  2. Control
    You will have limited control over things other than costs. Some of the other things you may not control are. . .
    • Where you can operate. This includes both the site of your business and in some cases the territory you cover.
    • The look of your business. Everything from the building to the stationery to the napkins follow company standards.
    • What you sell. In most cases you will not be allowed to expand your business to include other products or services.
    • Your methods.
    • Franchise success depends on predictability. The cookie cutter approach guarantees a measure of success, but it is restricting.

  3. No Guarantees
    Most people going into a business understand that no one can guarantee their success. But when you buy a franchise, you are not even guaranteed that you will be allowed to keep your business. Each franchise has its own rules about how the relationship will end.

Now that you know about franchises in general, how do you decide which is the best franchise opportunity for you?