{"id":14955,"date":"2022-06-27T16:04:20","date_gmt":"2022-06-27T15:04:20","guid":{"rendered":"https:\/\/www.franchiselocal.co.uk\/news\/?p=14955"},"modified":"2022-06-29T10:02:25","modified_gmt":"2022-06-29T09:02:25","slug":"the-pros-and-cons-of-franchises","status":"publish","type":"post","link":"https:\/\/www.franchiselocal.co.uk\/news\/the-pros-and-cons-of-franchises\/","title":{"rendered":"The Pros and Cons of Franchising"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #101010;color:#101010\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #101010;color:#101010\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-pros-and-cons-of-franchises\/#the-pros-of-purchasing-a-franchise\" >The Pros of Purchasing a Franchise<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-pros-and-cons-of-franchises\/#1-effortless-name-recognition\" >1. Effortless Name Recognition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-pros-and-cons-of-franchises\/#2-skip-the-startup-stage\" >2. Skip the Startup Stage<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-pros-and-cons-of-franchises\/#3-extensive-training\" >3. Extensive Training<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-pros-and-cons-of-franchises\/#4-much-easier-financing\" >4. Much Easier Financing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-pros-and-cons-of-franchises\/#5-help-with-marketing-and-advertising\" >5. Help With Marketing And Advertising<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-pros-and-cons-of-franchises\/#the-cons-of-franchising\" >The Cons of Franchising<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-pros-and-cons-of-franchises\/#1-rules-and-franchise-agreements\" >1. Rules and Franchise Agreements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-pros-and-cons-of-franchises\/#2-high-startup-costs\" >2. High Startup Costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-pros-and-cons-of-franchises\/#3-royalty-fees\" >3. Royalty Fees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-pros-and-cons-of-franchises\/#4-reputation-management-issues\" >4. Reputation Management Issues<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-pros-and-cons-of-franchises\/#find-your-franchise-with-franchise-local\" >Find Your Franchise With Franchise Local<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>One of the first decisions you\u2019ll have to make in starting your business is whether to join with an established brand or sink or swim with a brand entirely of your own making.<\/p>\n<p>In many ways, <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchising-101-how-does-a-franchise-operate\/\" target=\"_blank\" rel=\"noopener\">opening a franchise<\/a> is just like starting any new business. To find success, you\u2019ll need sharp business acumen, a resolute work ethic, and tremendous self-belief.<\/p>\n<p>That said, there are <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/advantages-disadvantages-of-franchising\/\" target=\"_blank\" rel=\"noopener\">some key advantages<\/a> and considerations to keep in mind if you\u2019re considering opening your franchise location.<\/p>\n<p>Let\u2019s explore some of the top pros and cons of franchises and discover which business model is right for your career aspirations.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" td-center aligncenter wp-image-15117 size-large\" title=\"The Pros Cons Franchising\" src=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/The-Pros-Cons-Franchising-1024x715.png\" alt=\"The Pros Cons Franchising\" width=\"1024\" height=\"715\" srcset=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/The-Pros-Cons-Franchising-1024x715.png 1024w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/The-Pros-Cons-Franchising-300x209.png 300w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/The-Pros-Cons-Franchising-768x536.png 768w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/The-Pros-Cons-Franchising-150x105.png 150w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/The-Pros-Cons-Franchising-600x419.png 600w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/The-Pros-Cons-Franchising-696x486.png 696w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/The-Pros-Cons-Franchising-1068x745.png 1068w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/The-Pros-Cons-Franchising-602x420.png 602w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/The-Pros-Cons-Franchising-100x70.png 100w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/The-Pros-Cons-Franchising-200x140.png 200w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/The-Pros-Cons-Franchising-20x14.png 20w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/The-Pros-Cons-Franchising.png 1202w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"the-pros-of-purchasing-a-franchise\"><\/span>The Pros of Purchasing a Franchise<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>First, let\u2019s dive into some of the top benefits you\u2019ll find in opening a new franchise location in your local neighbourhood.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1-effortless-name-recognition\"><\/span>1. Effortless Name Recognition<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Subway. <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/what-is-a-mcdonalds-franchise-and-do-they-sell-in-the-uk\/\" target=\"_blank\" rel=\"noopener\">McDonald&#8217;s<\/a>. <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/can-i-start-a-kfc-franchise-in-the-uk\/\" target=\"_blank\" rel=\"noopener\">Kentucky Fried Chicken<\/a>.<\/p>\n<p>Simply reading each of these names likely stirred up a reaction in you. Perhaps it was an image of colourful packaging or the aroma of fresh bread popping out of the toaster.<\/p>\n<p>This is one of the key advantages of opening your own franchise: instant and effortless name recognition.<\/p>\n<p>If you\u2019ve ever travelled in a foreign country and been less than satisfied with the culinary options on offer, you may have turned to one of these franchises to bring you a meal you could trust.<\/p>\n<p>Whether you enter the food and drink service or not, your business could provide that same familiarity and comfort to your customer base.<\/p>\n<p>From the moment you open up your doors, you can trust that people in your neighbourhood will already have countless positive associations with whatever brand you choose.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2-skip-the-startup-stage\"><\/span>2. Skip the Startup Stage<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The lengthy, laborious process of the startup stage puts many potential business owners off from taking the leap into business ownership.<\/p>\n<p>Before you\u2019ve earned a single penny, you\u2019ll need to:<\/p>\n<ul>\n<li><a href=\"https:\/\/www.franchiselocal.co.uk\/news\/writing-a-franchise-business-plan\/\" target=\"_blank\" rel=\"noopener\">Create a business plan<\/a><\/li>\n<li>Conduct market research<\/li>\n<li>Develop and test a minimum viable product<\/li>\n<li>Scale intelligently<\/li>\n<\/ul>\n<p>Each of these stages has dozens of steps that can derail your progress if you get them slightly wrong. If you\u2019re hopping into a franchise that already has several (or several thousand) locations, then all of this hard work is already done for you.<\/p>\n<p>It\u2019s been proven that this business can work somewhere.<\/p>\n<p>Now, it\u2019s time for you to prove that you\u2019re the right owner to make it thrive in your local neighbourhood.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-14958 size-large\" title=\"FLprosandcons1 min\" src=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons1-min-1024x683.jpg\" alt=\"Business people seated in a circle\" width=\"1024\" height=\"683\" srcset=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons1-min-1024x683.jpg 1024w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons1-min-300x200.jpg 300w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons1-min-768x512.jpg 768w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons1-min-1536x1024.jpg 1536w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons1-min-150x100.jpg 150w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons1-min-600x400.jpg 600w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons1-min-696x464.jpg 696w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons1-min-1392x928.jpg 1392w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons1-min-1068x712.jpg 1068w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons1-min-1920x1280.jpg 1920w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons1-min-630x420.jpg 630w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons1-min-1260x840.jpg 1260w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons1-min-20x13.jpg 20w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons1-min.jpg 1999w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3-extensive-training\"><\/span>3. Extensive Training<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If you decide to start your own brand, you\u2019ll quickly understand the meaning of the phrase, \u201cYou\u2019re on your own.\u201d There\u2019s no teacher, no experienced partner to lean on.<\/p>\n<p>Your success or failure will be entirely in your hands.<\/p>\n<p>What if you\u2019ve never managed a team of more than a half-dozen? That\u2019s a big leap to then hire and motivate thirty or forty employees.<\/p>\n<p>Fortunately, as an owner of a franchise location, you\u2019re not alone.<\/p>\n<p>Franchise owners want every location to succeed. So, they\u2019ll invest heavily in training your employees and even yourself in tried-and-tested management techniques.<\/p>\n<p>Your team will quickly gain daily operational skills that have led to success at other locations. Granted, you\u2019ll still have to motivate and create camaraderie between all of your employees.<\/p>\n<p>But that daunting mountain just became a little easier to climb, didn\u2019t it?<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4-much-easier-financing\"><\/span>4. Much Easier Financing<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>We can\u2019t talk about starting up a new business without thinking of the <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-much-should-i-pay-for-a-franchise\/\" target=\"_blank\" rel=\"noopener\">startup costs<\/a>.<\/p>\n<p>If you have an idea for your own brand, it can be incredibly difficult to secure financing for an experimental new brand. Think of the questions your lender might have:<\/p>\n<p>What experience do you have? How can we trust that this model can repay our business loan?<\/p>\n<p>Now, imagine that a lender can look at hundreds of examples where your business model has already proven successful. They\u2019ll likely be more forgiving if your location isn\u2019t an immediate success.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-14962 size-large\" title=\"FLprosandcons5 min\" src=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons5-min-1024x686.jpg\" alt=\"Mcdonald's french fries\" width=\"1024\" height=\"686\" srcset=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons5-min-1024x686.jpg 1024w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons5-min-300x201.jpg 300w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons5-min-768x514.jpg 768w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons5-min-1536x1029.jpg 1536w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons5-min-150x100.jpg 150w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons5-min-600x402.jpg 600w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons5-min-696x466.jpg 696w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons5-min-1392x932.jpg 1392w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons5-min-1068x715.jpg 1068w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons5-min-1920x1286.jpg 1920w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons5-min-627x420.jpg 627w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons5-min-1254x840.jpg 1254w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons5-min-20x13.jpg 20w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons5-min.jpg 1999w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"5-help-with-marketing-and-advertising\"><\/span>5. Help With Marketing And Advertising<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>One of the most difficult challenges with any new brand is also one of the simplest: how do we notify the world that we exist?<\/p>\n<p>As a franchise owner, this hurdle is already largely covered by your established brand. They\u2019ll promote your business using national campaigns on TV and online.<\/p>\n<p>If you want to create local campaigns, your established brand might be able to provide a budget, market analysis, and strategy to help it succeed.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"the-cons-of-franchising\"><\/span>The Cons of Franchising<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Now that we\u2019ve covered many of the pros of opening a franchise, let\u2019s cover some of the drawbacks of this type of business model.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-14964 size-large\" title=\"FLprosandcons6 min\" src=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons6-min-1024x683.jpg\" alt=\"a hand signing a contract\" width=\"1024\" height=\"683\" srcset=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons6-min-1024x683.jpg 1024w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons6-min-300x200.jpg 300w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons6-min-768x512.jpg 768w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons6-min-1536x1024.jpg 1536w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons6-min-150x100.jpg 150w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons6-min-600x400.jpg 600w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons6-min-696x464.jpg 696w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons6-min-1392x928.jpg 1392w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons6-min-1068x712.jpg 1068w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons6-min-1920x1280.jpg 1920w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons6-min-630x420.jpg 630w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons6-min-1260x840.jpg 1260w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons6-min-20x13.jpg 20w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons6-min.jpg 1999w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1-rules-and-franchise-agreements\"><\/span>1. Rules and Franchise Agreements<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Being a business owner comes with risk and responsibility and <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-good-is-the-franchise-model-business\/\" target=\"_blank\" rel=\"noopener\">some tremendous upside<\/a>.<\/p>\n<p>Sure, you might have to go into substantial debt, but at least you get to be your boss. Yes, you might have to manage others, but ultimately, your success or failure depends on your own acumen and work ethic.<\/p>\n<p>When it comes to franchising, the truth is a bit more complex.<\/p>\n<p>If you agree to open a franchise, you\u2019ll likely be asked to sign a Franchise Disclosure Agreement. This document will outline in detail all the rules and standards you agree to uphold as a representative of the established brand.<\/p>\n<p>While you might have a great idea for how to drum up business in your local neighbourhood, you better make sure first that it doesn\u2019t violate your agreement. If it does, you risk losing your franchise and your business.<\/p>\n<p>If you decide that the conditions are too restrictive and want to <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/can-you-sell-a-franchise-10-steps-to-success\/\" target=\"_blank\" rel=\"noopener\">sell your business<\/a>, you might find it\u2019s a bit harder to exit than you imagined. Consult with a trusted legal professional to fully understand the agreement of your franchise contract.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2-high-startup-costs\"><\/span>2. High Startup Costs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>While you\u2019ll likely find it easier to secure financing to buy a franchise as opposed to starting your own independent business, some brands can charge substantial franchise fees.<\/p>\n<p><a href=\"https:\/\/www.franchiselocal.co.uk\/green-machine\/\" target=\"_blank\" rel=\"noopener\">Green Machine<\/a> requires a minimum investment of \u00a321,000, while <a href=\"https:\/\/www.franchiselocal.co.uk\/goliathtech\/\" target=\"_blank\" rel=\"noopener\">GoliathTech<\/a> charges a whopping \u00a3100,000.<\/p>\n<p>Taking on debt is nearly a certainty with any business, but those eye-popping sums might discourage you from opening your location.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3-royalty-fees\"><\/span>3. Royalty Fees<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>While you can certainly accrue a great deal of wealth operating your own franchise, those potential profits will never be quite as high as they could be with your own startup.<\/p>\n<p>Why? <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchise-royalty-fees-what-are-they-and-how-much-should-they-be\/\" target=\"_blank\" rel=\"noopener\">Royalty payments<\/a>.<\/p>\n<p>Your parent brand will take out a recurring chunk of revenue in exchange for your lease of their name and system of business. In addition, you\u2019ll be asked to contribute to advertising and marketing costs at your brand\u2019s discretion.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4-reputation-management-issues\"><\/span>4. Reputation Management Issues<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Let\u2019s imagine you\u2019re the best franchisee owner imaginable. You run a tight ship, motivate your team members well, and form an unbreakable bond with your local community.<\/p>\n<p>Business is thriving.<\/p>\n<p>Now, what if a national scandal erupts? Your parent brand makes a major gaffe that has nothing to do with your actions.<\/p>\n<p>Like it or not, your business might plummet. Of course, this hypothetical could apply in the other direction as well.<\/p>\n<p>A competing brand could experience a media disaster, and your location will benefit for reasons out of your control. That\u2019s a much better scenario, isn\u2019t it?<\/p>\n<p>When you become a franchisee, you must accept that some percentage of your success (or potential failure) is out of your hands.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-14961 size-large\" title=\"FLprosandcons4 min\" src=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons4-min-1024x683.jpg\" alt=\"Business people shaking hands\" width=\"1024\" height=\"683\" srcset=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons4-min-1024x683.jpg 1024w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons4-min-300x200.jpg 300w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons4-min-768x512.jpg 768w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons4-min-1536x1024.jpg 1536w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons4-min-150x100.jpg 150w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons4-min-600x400.jpg 600w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons4-min-696x464.jpg 696w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons4-min-1392x928.jpg 1392w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons4-min-1068x712.jpg 1068w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons4-min-1920x1280.jpg 1920w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons4-min-630x420.jpg 630w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons4-min-1260x840.jpg 1260w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons4-min-20x13.jpg 20w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons4-min.jpg 1999w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"find-your-franchise-with-franchise-local\"><\/span>Find Your Franchise With Franchise Local<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>From instant <a href=\"https:\/\/www.investopedia.com\/terms\/b\/brand-recognition.asp\" target=\"_blank\" rel=\"noopener\">name recognition<\/a> to restrictive contractual agreements, there are tremendous upsides and sizable considerations to keep in mind in starting your own business.<\/p>\n<p>It\u2019s one of the toughest decisions you\u2019ll make in your whole life.<\/p>\n<p>That\u2019s why we\u2019re here.<\/p>\n<p>Browse our expansive catalogue of UK-based Franchises, from the <a href=\"https:\/\/www.franchiselocal.co.uk\/best-franchises-uk\/\" target=\"_blank\" rel=\"noopener\">most popular brands<\/a> to <a href=\"https:\/\/www.franchiselocal.co.uk\/low-cost-franchise\/\" target=\"_blank\" rel=\"noopener\">low-cost franchises<\/a> fit for any budget.<\/p>\n<p>To learn everything there is to know about franchising, read through our news and resources page to discover <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-much-should-i-pay-for-a-franchise\/\" target=\"_blank\" rel=\"noopener\">how much you should pay for a franchise<\/a> and the <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchisor-interviews\/\" target=\"_blank\" rel=\"noopener\">top tips of the trade from successful franchise owners<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>One of the first decisions you\u2019ll have to make in starting your business is whether to join with an established brand or sink or swim with a brand entirely of your own making. In many ways, opening a franchise is just like starting any new business. To find success, you\u2019ll need sharp business acumen, a [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":14960,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1467],"tags":[],"class_list":["post-14955","post","type-post","status-publish","format-standard","has-post-thumbnail","category-franchise-information"],"acf":[],"jetpack_featured_media_url":"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/06\/FLprosandcons3-min.jpg","_links":{"self":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/14955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/comments?post=14955"}],"version-history":[{"count":0,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/14955\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media\/14960"}],"wp:attachment":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media?parent=14955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/categories?post=14955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/tags?post=14955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}