Benefits & Risks

Consider the benefits and risks of owning a franchise.

Benefits

• Opportunity to be a small business owner
• Support network from franchise and other franchisees
• Branding, power of cooperative advertising
• 97% of franchised businesses are still open after five years, unlike 7% of non-franchised businesses

Risks

• Unlike being a true entrepreneur - franchise rules have to be followed
• Can’t change major components of the business
• Still lots of work involved - this is not an easy business
• Baseline financials - correct amount of capital