Advertising fees: You may have to pay into an advertising fund. Some portion of advertising fees may go for national advertising or to attract new franchise owners, but not necessarily to target your particular outlet.

Controls: To ensure uniformity, franchisors typically control how franchisees conduct business. These controls may significantly restrict your ability to exercise your own business judgment.

Terminations and Renewal: You can lose right to your franchise if you breach franchise contract. In addition, franchise contract is for a limited time; there is no guarantee that you will be able to renew it. A franchisor can end your franchise agreement if, for example, you fail to pay royalties or abide by performance standards and sales restrictions. If your franchise is terminated, you may lose your investment. Franchise agreements typically run for 15 to 20 years. After that time, franchisor may decline to renew your contract.

Before investing in a particular franchise system, carefully consider how much money you have to invest, your abilities, and your goals.

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You want to be your own boss.

You want financial independence.

You want creative freedom.

You want to fully use your skills and knowledge.

Next you need to determine what business is "right for you." Ask yourself these questions:

What do I like to do with my time?

What technical skills have I learned or developed?

What do others say I am good at?

How much time do I have to run a successful business?

Do I have any hobbies or interests that are marketable?

Then you should identify niche your business will fill. Conduct necessary research to answer these questions:

Is my idea practical and will it fill a need? What is my competition?

What is my business advantage over existing firms?

Can I deliver a better quality service?

Can I create a demand for my business?

The final step before developing your plan is pre-business checklist. You should answer these questions:

What business am I interested in starting?

What services or products will I sell? Where will I be located?

What skills and experience do I bring to business?

What will I name my business?

What equipment or supplies will I need?

What insurance coverage will be needed?

What financing will I need?

What are my resources?

How will I pay myself?

Having worked your way through above questions should have given you an indication of whether or not you still want to go into business. If you have decided against, then at least you have learnt something. If you are going ahead with your venture then congratulations and have a successful business.

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