Ten reasons not to buy a franchise
October 4, 2006
If you’re considering buying a franchise, you should know that many of the franchise advice sites on the Internet are set up to make you believe that investing in a franchise is the best thing since sliced bread.
Check out the list of ten reasons not to buy a franchise on forbes.com before making a decision. Forbes cites high start up costs, lack of legal recourse and limited independence as some of the reasons for thinking twice before starting a franchise.
If you still want to go it alone, but think you would feel more secure having a franchise, then setting up on your own, because you don’t have any business experience, consider taking a business course instead. Sure, some of them are expensive, but they’re usually a whole lot cheaper than paying a franchise licence fee.
If you think it sounds as though I have a downer on franchising – you’re right. I have been a franchise owner, and I would not invest in a franchise again – ever. Not because I didn’t make any money – I made quite a lot. But, for me, the cons – many of which are highlighted in the forbes article, outweighed the pros.
So before you go tying yourself into a restrictive franchise agreement, consider whether your chosen business is something you could set up on your own – if you had the necessary training, and consider taking a business course instead.
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