Why would anyone buy a franchise vs. starting their own business?

i am talking about a buiness that isn't on the level of McDonads. Something small, like a doggy daycare, or a coffeehouse (not starbucks) . this is more something community level.

And would i be infringing on their *idea* legally? or is it an ethical issue?

7 Answers

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  • 1 decade ago
    Favorite Answer

    I started working with smaller franchises because I appreciated the stability and the track record associated with the businesses I began. Also, I thought the research and information available was extremely helpful in helping me decide which franchise to go with. I primarily used FranchiseGator to research potential franchises to buy. They really specialize in the smaller franchises and that information is so valuable. It truly is a fabulous resource. Here is the url: http://www.franchisegator.com/

  • 1 decade ago

    There is a perception that you receive great support by going with a franchise as a new business owner versus starting your own. The level of support varies by franchisor though (from full-on training to regional marketing to nothing at all) so if this is something you are considering definitely interview the franchisor, check out the paperwork, and interview other franchisees.

    If you do plan to venture off on your own and want to start the next "Best Friends Pet Resort & Salon" without buying in as a franchisee, make sure you do not infringe on any trademarks, copywrited material, etc. And anyway, try to put your own flavor in it so that it is yours and not an imitation. Otherwise, I don't think you would be infringing on their idea legally or morally. There seems to be nothing truly unique in this world nowadays.

  • 5 years ago

    The previous answer is pretty spot on. One con to add is that you will be expected to operate a franchise business exactly as the franchisor dictates in the franchise agreement, so you will not have much flexibility to operate the business as you please. A pro to add is that generally franchises are more successful than independent start-ups because the franchisee has the benefit of the franchisor's experience.(That's why financing is usually easier to obtain) There are pros and cons to both franchises and independent businesses. The main question to ask yourself is how well you are able to follow a system, and whether that is something you want to do; and whether you are willing to pay some of your revenues in exchange for utilizing the franchise system.

  • d00ney
    Lv 5
    1 decade ago

    The main disadvantage of franchises is that they can be expensive.

    The advantage is that they work, and banks like them.

    As far as I can see there is no problem in mimicking a franchise operation, provided you do not let people think you are that operation. In other words the operation has to be seen to be independent.

    A good name gives a flying start. Many people buy a franchise rather than taking the time to build up their own goodwill.

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  • LD
    Lv 4
    1 decade ago

    I think a franchise is a bad idea, if you're good, you don't need a franchise. If you have no idea of what you're doing a franchise would help, but then you shouldn't go into business.

    Look on the Internet how many people have franchises for sale. Why are they selling them? Because THAT doesn't guarantee anything. Oh boy, they give you a sign, I make my own sign!

  • Anonymous
    1 decade ago

    Franchises offer a proven marketing system and their success rate as advertised by them is much, much higher. Starting your own business without a brand name can be difficult but "you" are in control and pay no royalties. Almost all businesses are copyable as long as you do not use copyrighted materials, logos or brand names or obvious variations of registered brands. Read "Blue Ocean Strategy" by Kim and visit my free non-profit website www.wmeu.org to get my contact information as I love to mentor and help new business owners.

  • jdkilp
    Lv 7
    1 decade ago

    Franchises are "turn key." And, most companies offering them also provide training, marketing, and have the benefit of name recognition.

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