7 Significant Pros and Cons of Buying a Franchise


Around the country there are over 3,000 different franchise companies in over 300 business categories.

As rewarding as it can be to buy into an established franchise, there are a few things to consider first. Here is a list of seven significant pros and cons to help you decide if this is the right type of business opportunity and investment for you.


  1. Your reputation relies upon that of the franchiser
  2. It may not matter how well-managed your particular location is if the brand has a bad reputation or is involved in a public affairs nightmare. Your customers will view every location the same.

  3. Start-up costs and royalty payments
  4. There can be a high initial investment (average is $250,000 plus real estate) and royalty payments range from 3-5 percent of monthly gross sales.

  5. Limited creativity and flexibility
  6. You will need to strictly follow the set business model and won’t have the flexibility to be creative or the authorization to make policy changes.

  7. >Marketing fees and contracted suppliers
  8. You’ll need to pay fees for your local marketing campaign materials. Also, you don’t have a choice in suppliers, as they are approved and contracted by the franchiser.

  9. False expectations
  10. If you don’t do enough research, you may see yourself stuck in a long-term contract with a company that doesn’t fit your ideals or suit your needs. There are no guarantees of success and you’ll still need to put a lot of work into running your new business.

  11. Restrictive guidelines
  12. You will be required to operate your business by strict guidelines. These rules can cover everything from the prices you charge to the color of your decor. You’ll also be required to share financial information.

  13. Possibility of inadequate support
  14. Though most franchisers offer plenty of market and field support, there is always the risk that their level of support doesn’t match what you feel you need. In the end, the success of your franchise rests solely with you.


    1. A framework for success
    2. By already having a strong business model and culture in place from the start, you won’t have to work through the trial and error phase of startup. A recognized name will make it easier to recruit qualified staff, and some franchisors provide management and technical training.

    3. An established brand and customer base
    4. Since your brand is already well known by a base of customers, you’ll spend less time attracting new ones, allowing you to immediately focus on making a profit.

    5. Financial Assistance
    6. In some cases, franchisors may provide loans and other financial assistance to help franchisees with startup costs.

    7. Access to R&D and new products
    8. Your franchisee has the motivation and financial capability to research and develop new techniques and products. They also have proprietary methods to which you’ll have access.

    9. Provided marketing materials and supplier list
    10. Franchises will provide you with all the materials needed for a marketing campaign. With contracted suppliers, you may receive supplies at a price below market value.

    11. Work for yourself
    12. You’ll have more freedom and flexibility, allowing a more fulfilling work-life balance. You’ll choose the people who work for and alongside you. You’ll feel the pride of building something of your own and then be able to reap the rewards.

    13. Low risk
    14. Franchises are a proven business model. A system of profitability has been established. You will get the support you need from your franchisee so you can enjoy your own success.

    Learpexels-photo-86753-largen more about the Bruges Waffles family and why we are one of the nation’s best franchise opportunities. Or, if you’re ready, just go for it!  


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