Without doubt, business franchises provide many ways for people to enter into entrepreneurial pursuits. The strengths of franchising generally outweigh a few significant downsides. Naturally, people with previous management experience often achieve particularly great success through the exploitation of existing brands. In a time when corporate staff cuts are fairly common, victims of downsizing can establish new careers as managers of franchise locations. As reported by the International Franchise Association, franchises create jobs at a faster rate than non-franchise businesses. Deep-seated trends in the modern economy seem to ensure that franchises will remain economically viable into the foreseeable future.
One of the great advantages of joining a franchise is the ability to access to a proven, turnkey business opportunity. In other words, franchisees are the beneficiaries of established business models that can create profits very quickly. Of course, not all franchises passing as turnkey operations provide equal support for franchisees.
The U.S Small Business Administration (SBA) is one public office that disseminates important tips and advice for people considering franchise opportunities. Although this federal organization is fairly positive towards the benefits of franchising, the SBA deeply emphasizes the importance of fully understanding franchise rules and regulations before adopting any franchise model. In many cases, contractual relationships between franchisors and franchisees will provide lopsided benefits for franchisors. For example, franchisors often insist on selling all inventory, supplies and business equipment directly to franchisees.
For a traditional entrepreneur creating a business from scratch, building a customer base can prove a long, expensive process. Some new businesses drain money for months or years before they establish sufficient brand recognition for profitable operation. By becoming a franchisee, a business owner can bypass this long branding process and start making profits much faster. In the long run, however, combined franchising costs can limit overall returns. Business franchising remains a fine option for people with managerial talent but little ability to conceptualize new business models or innovative methods.