The Downside to Franchising

For many of us our time here at SUU will be drawing to an end fairly soon. As students of business we have a few different options one of which includes being an entrepreneur. For those of you thinking about taking this route you may be interested in this article on franchising. There are a few perks to franchising, but for the most part it is a rough road to travel. As a franchisee you get all the financial exposure, headaches and stress of business ownership, but the company that has sold you the franchise collects royalties on every nickel that comes through the door, not to mention charging fees for marketing, and other fees to recoup some of the company’s overall costs, some of which offer no benefit to your individual store. The franchisor usually dictates virtually every detail of what you can do, including how you price your wares, what kinds of signs you can put up, how much overtime you may pay your employees, and who will be your suppliers. My suggestion to you is find a way to make money doing the thing you love most and start your own business from scratch. For those of you who find making out or sitting on the couch eating potato chips as your favorite thing to do I suggest reverting to the second thing you love to do most. :)