Small Business Opportunities | Pros and Cons of Franchising

Starscapes home-based business opportunity

Franchising is a multi-billion dollar industry and there are more than 5000 different franchises one can launch. Millions of us spend at least one third of every dollar on a franchise product or service. There is still room to get in on the incredible franchise boom.

There are plenty of different independent and interdependent ways to start a business. Have you been thinking of starting your own business this year, but don't want to launch a business completely from scratch? Then consider a business opportunity often referred to as a turnkey business, or consider a franchise. With a business opportunity package you are purchasing a system of doing business that often comes with an instructional manual or a video. There are no royalties to pay but there is often no support or follow-up opportunities.

With a franchise, you are getting involved in a long term relationship with a franchisee. You are purchasing their signage, logos, uniforms, and systems of doing business. There is no originality that you can bring to the business. You must support the proven franchised system of doing business.

There are fundamental differences between a business opportunity and a franchise. A franchised business is based on a proven method of doing business. Most often, franchised businesses are "look-a-like" businesses, meaning that signage, outfits, offerings, menu, vans, logos, etc. are identical. When you pay the franchise fee, you are purchasing the rights to use these clearly identified logos and business symbols from that particular franchise corporation.

In order to run the franchise, you must follow the rules and regulations as set forward by the franchisor. They will want you to attend training classes, perhaps attend an annual convention, and will want to make sure you keep up with their standards. According to the International Franchise Association, you are in business for yourself, but not buy yourself.

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