by Erik Van Tongerloo

Created on: May 09, 2006   Last Updated: October 22, 2009

There are many people who want to start their own business but they are afraid of all the risks associated with this decision. Owning a franchise can be a good idea for them because they get help for the start up procedure and the advantage of a proven business strategy and name recognizing.

Owning a franchise might seem wonderful there are still pros and cons and it is important to understand very well the basics and your obligations if you own a franchise. A franchise is an agreement between the franchiser (the owner of a certain brand name) and the franchiser (the person who wants to set up his business) and allows the franchiser to sell and produce the brand name product.

There are fewer risks than starting your own business but there is still no guarantee for success and all profit is not yours; you have to pay fees and royalties for the rights to use the operating systems. You always need to accept the controls and procedures of your franchiser and you can't take all decisions you want to take. It is possible your franchiser will restrict promotions, pricing, territory, marketing and some other rules which can be important for the expansion and even success of your business.

Before you consider owning a franchise it is important to do some research about the initial costs which can be very expensive. You need also to check the factors which may influence your potential growth. It is not possible to expand your business without an agreement of your franchiser. You need to be aware that owning a franchise is hard working and you can only succeed if you can find the necessary time and have the courage to work more hours than people who work in a company.

However, there are disadvantages of owning a franchise; it is often the best solution for people who are afraid of taking too many risks and they have the benefit of guidance, training and support of the franchiser. You can compare owning a franchise with cloning a successful business in your area but you need to possess the talent, motivation and willpower to succeed in business.

Here are some advantages which may help you to decide if owning a franchise is a good idea for you:

* Business strategy

When you own a franchise you can start with a business strategy which works in other areas. You don't struggle with a business plan which is one of the main reasons why people don't succeed in business. There is already a business plan with a proven business strategy in other areas. Franchise companies will teach

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