Training and Support
Franchises are also known for the vast training and support that they offer to their franchisees.
In fact, the training that is provided is oftentimes one of the biggest reasons for opting to buy into a franchise.
Franchisors will typically offer initial training prior to getting your company up and running.
They will usually also provide ongoing support to you – and to your employees, if applicable – should you ever have any questions or concerns.
Although there are a number of great advantages to working with a franchise, there are some aspects of this model that some people feel are drawbacks. These can include the following:
One of the biggest drawbacks that most people feel that a franchise presents is cost.
In most cases, franchisees must first come up with an initial down payment in order to buy into the franchise.
In addition, there are typically ongoing fees that are required for use of the company name and/or branding.
These fees are oftentimes taken as a percentage of the franchisee’s revenue or sales performance.
Control – or lack of control – is another of the drawbacks of the franchise model.
When you own your own company, you are generally able to control each and every aspect of the business.
However, with a franchise, you are usually required to sign an agreement stating that you will follow their rules and operate the business in the manner that is set forth by the franchisor.
This requires that you abide by the set operating system and use their required equipment. You – and your employees, if applicable – may even be required to wear a specific uniform that is mandated by the franchisor.
While many cleaning franchises can be operated out of one’s home, there are some that have a retail location that you operate from.
If this is the case and you buy into a franchise, you will not likely have a say in where your physical site will be.
This is because with the franchise model, the franchisor generally already has the site locations chosen.
In fact, often, the main office of the franchisor will have a team of real estate experts that use advanced site selection techniques that are based on traffic patterns and other demographic factors for the purpose of choosing the best locations for their product or service.
Resale Value / Profit Sharing
If you are seeking a big payday for the sale of your business, then franchising is not likely the way to go either.
For those who own their own business – and if that company becomes highly profitable – there is a chance that you can sell that business for a tidy profit in the future.
But unfortunately, this isn’t the case with a franchise.
The good news is, however, that if your franchise location is unprofitable, the franchisor will usually step in as the buyer of last resort.