Decided to start your own business? Great! In that case, you may already be considering buying into a franchise. Not only does owning a franchise location provide a certain level of business safety, other advantages include:
- Trusted brand recognition
- Associating with proven products or services
- High levels of quality and customer service
- Joint advertising and market campaigns
All great benefits to owning a franchise!
However, that doesn’t necessarily mean franchising is the right option for you.
To buy a franchise… or not to buy?
What do you want from your business life? What do you value the most?
Some people place independence at the top of their list of work goals. Others want to make as much money as possible.
Answering this question first—why do I want to own my own business?—will help you decide whether to buy a franchise or choose another option.
When you buy a franchise, you’ll find a number of restrictions in your agreement with the franchiser.
Because franchises are first and foremost brand names, which means they have a company voice and image to uphold—no matter what.
That means you’ll probably be limited in one or all of the following areas:
- Territories. To avoid placing too many locations in the same vicinity (or in the “wrong” area), franchisees are often told where they can and can’t set up shop.
- Ongoing royalty fees—generally 4-6% of gross profits. Though it’s not a restriction on how much money you can make, franchisors will often set up weekly, monthly, or quarterly royalty fees that cut directly into your sales.
- Limits on hiring/firing employees. Before you buy a franchise, remember that they may control who you hire and what skill sets they need to have. Franchisors may even restrict who you can fire, and when.
- Service expansion. Due to the franchise’s brand and image, most companies do not allow franchisees to expand their services beyond their normal scope of operations. That means even though you want to sell an additional product or service, they may not allow it.
Buying into a franchise or purchasing a license?
Before you buy a franchise, consider purchasing a license to a business model.
What’s the biggest advantage to licensing a business model over buying a franchise?
When you license a business model, you have few restrictions on what you can and cannot do. You are not associated with the licenoer’s brand in any way—and that means you’re free to:
- Work where you want, with few exceptions
- Hire and fire who you want
- Design and construct your place of business, your way
- Expand your services as you see fit
- Pay low set fees
The ECS Business Model License
Click here to learn more about licensing the ECS Business Model. We are a utility bill auditing company with a proven energy auditing and client management system—you can earn $100,000 or more in 24 months or less. Watch this exclusive video to learn more about your earning potential with the ECS Business Model.