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Well known, established franchises typically have a National Advertising campaign in place that provides TV, radio, and printed material advertising. This way, you don’t have to spend a lot of your own money locally advertising your business.
6.(Con) Loss of promotion/advertising freedom.
Great national advertising promotions are typically accompanied by blanket: “You will promote this product or service during this campaign” ruling. Hopefully, their advertising campaigns will make sense, won’t cost you too much money, and bring in more business. Sometimes it works and sometimes it doesn’t.
7.(Pro) Name recognition.
Who has not heard of Baskin Robbins, Subway or GNC? If you haven’t, you’ve been living in a cave. Franchises typically have wonderful name recognition benefits to them. In other words, people will actively seek out a particular franchise wherever they go.
8.(Con) Customer holds other franchise experiences against YOU.
If a customer has had a bad experience at one franchise location, he tends to hold all of
other franchise owners responsible for that one bad experience somewhere else. In other words, I’ll never go to another Subway because I didn’t like meatball sub I got at Joe Blow’s location.
9.(Pro) Potential for higher sales.
With national advertising campaigns and name recognition, your franchise business has a better potential for much higher sales than a similar business with a no-name, no experience rating history.
10.(Con) Handing over a percentage of your sales to “Big Daddy”.
Yeah, higher sales! But ouch, you have to hand a large bulk of your sales over to “Big Daddy”. For every dollar you earn, your franchise fee rips away anywhere from .04¢ to .25¢. Pull your wallet out and hand it over to “Big Daddy”.
As with any situation in life, there are resulting pros and cons. Simply study nature of franchises completely and talk to other franchise owners to get a feel of whether you will want to purchase that particular franchise. If it’s a good fit, go for it!
Good luck and good business!
As a Mind Power Leadership coach, trainer, and speaker, Ronya Banks has helped others become leaders and business owners since 1992. Frequently featured in radio, magazine and newspaper articles and interviews, Ronya helps you find the great leader within by accessing the natural power of your minds. Discover more of Ronya’s proven leadership success secrets by subscribing to her Mind Power Leadership ezine newsletter at: http://www.livinginaction.com/newsletter.cfm.
