Pros and Cons of Start-up Franchises

You're quite certain that buying a franchise business represents your ideal pursuit of happiness in business. One of the final questions remaining before you now is "What type of franchise arrangement will work best for me?"

As you mull your decision like Hamlet - "To be (a start-up), or not to be (a start-up), - that is the question!" - note that you can still choose the industry vertical, e.g. fast food. The crux of the matter is whether you want to be a big fish in a little pond or vice-versa?

It all boils down to a soul-searching, face-the-music gut-check that seriously weighs the pros and cons of going with a tried and true emporium with brand recognition, or taking more of a risk with the newest, hot entry into the market. Here are a few key tipping points that might help you to focus better and to help match your options with your overall goals, financial status and personality:

• If you can get in on the ground floor of a new operation, you will have the opportunity to be on the cutting edge, the first on your block. On the other hand...the franchisor has no experience to support this new system. So, do you have extraordinary marketing and business skills to overcome this issue?
• The "XYZ" corporation may have found an ideal niche that serves an unmet need in the market which could foretell growth. On the other hand...their product or service may turn out to be little more than a "me-too" concept with no uniqueness. Are you absolutely certain that this company does have a unique selling proposition?
• Purchasing a start-up franchise probably means that your upfront costs as a franchisee will be relatively lower than buying from a company with hundreds or thousands of locations. On the other hand... the franchisor will likely have lower financial reserves to support marketing/training.

Again, maybe you have prior business experience that can offset this disadvantage - do you have what it takes?

To assist with helping you measure the arguments for and against a start-up, is the advice of a FranFinders expert franchise consultant.