Advantages and Disadvantages of Buying A Franchise
Owning a franchise business in Australia is a dream come true for so many entrepreneurial individuals who want to start a business but don’t want to start from scratch. However, with any franchise opportunity comes a set of advantages and disadvantages that influence one’s decision before becoming a franchisee.
Laser Clinics Australia lists down some of the more common pros and cons of buying a franchise:
Pros of Buying a Franchise Opportunity
Purchasing a franchise paves the way for acquiring more opportunities with fewer steps, as compared to creating a business from scratch. Here are the 3 most common advantages of buying a franchise:
1. Avoid the Startup Stage
While you still need to draft a business plan and conduct market research, especially when you buy an LCA franchise, you do skip several steps that you would otherwise experience when creating a startup from scratch. This is because the brand you’ve signed on with has already been tried and tested. All you need to do is execute their proven systems.
2. Work with and Established Business
There’s still so much work to do for you as a franchisee, even when working with a known brand. However, unlike a fresh business with no proven business model, the nationwide brand recognition of a franchise will make it easier for you to grow your business - this is why franchises are more likely to have a higher success rate compared to startup businesses.
3. Training and Support
From on-site training to assisting with marketing and advertising, a franchise business gives you access to all sorts of support you need in order to stay successful. You can be in contact with mentors who can bring you and your staff up to speed with the brand’s systems and procedures, thus minimising the time and effort it will take if you create your own staff training program.
Cons of Buying a Franchise Opportunity
On the other hand, there are certain aspects of a franchise business that could prevent you from signing on the dotted line. These top 3 common disadvantages have dissuaded potential franchisees from pushing forward with their plans:
1. On-going Costs
Buying a franchise may be more expensive than creating a business from scratch due to its long-standing brand recognition and reputation. A potential franchisee may also learn about the varying ongoing costs and royalty payments associated with a franchise business and, if they realise that they do not have the financial resources, veer away from the franchise opportunity altogether.
2. Abiding by Rules set by Franchisor
If you want to have free rein over your business and set your own rules, a franchise business might not be for you. Many franchisors have a set of strict rules that make sure all franchises are working efficiently. Most franchisees comply with these rules whether they agree with them or not.
3. Reputation Management Issues
Brand recognition has its own advantages and disadvantages as well. On one hand, the business might be well known nationally that it could be a household name. On the other hand, you may have to keep up and move within the expectations of a well-known brand, which could affect how you want to run your own franchise.
A franchise business makes it easier to be successful in a shorter time, compared to creating a startup. While there are some disadvantages to consider, overall, given how the pros clearly outweigh the cons, owning a franchise is worth all the effort you put in.
Laser Clinics is an award-winning franchise business in Australia that takes care of its brand and ever-growing network. We can help you run your business and set you up for success through our training programs, 50-50 partnership and attractive remuneration package that can get you from zero to a hundred in a short period of time. Visit our website for more information or to send an inquiry.
