Is Buying a Franchise a Good Idea?

The single biggest advantage to buying into a franchise is brand recognition. Yes they give you a business plan and help you find suppliers but the true value of franchises are buying into a brand.

Instead of opening Jims Burger Shack and hope for customers you can open a McDonald’s and have guaranteed customers the first day.

So if youre thinking about buying into a franchise in our industry ask yourself this: can you list 1 or 2 brands that youve heard of that are big players in that industry? Dont look them up or google them – it only matters if you already have heard of them.  

If the answer is no youre probably better off opening up your own shop. Youll save a lot in franchising fees and your startup costs will drop substantially.  

If the answer is yes youre probably better off buying into the franchise. Youll dramatically reduce the risk of the business failing and you can usually rely on the franchiser to do most of your marketing.