Owning your own business may have been your dream for a long time. Perhaps you felt the spark way back when you got your first part-time job working at a fast food or retail franchise. Like many, you probably learned a lot about work ethic, management and back-of-house operations when you were working during your teen years, and that feeling of success was something you wanted to share with your own future employees.
Of course, working part-time only scratched the surface of the information you needed to learn about running a business. When you began to seriously pursue the idea, one thing you may have realized quickly is that it would take you years to have the money, the knowledge and the skills to start your own business from the ground up. This is why many Ohio entrepreneurs turn to franchises.
Is it right for you?
A franchise allows you to use your skills in business and management to own a business in a way that could steer clear of some of the complications and risks of a startup. The franchisor may have done most of the hard work for you, including finding a location and building or remodeling to suit your business. You will likely already have vendors in place and a territory where other stores in your franchise will not crowd you out.
With a franchise, many factors could make it more likely that you will succeed compared to your odds of success as an original startup. Here are some of the elements that might improve your chances:
- Your business could have a brand name and corporate image that customers recognize and may be comfortable patronizing.
- You will likely not have to create a new system for running your franchise because the company may have one in place that is proven to work.
- Your head office will likely provide training for you to help you learn how the company runs as well as how to run your franchise.
- You will likely have access to support and advice from the home office as well as owners of other franchises.
- You will probably be responsible only for local advertising because your franchisor may handle most marketing details and costs.
Obtaining financing for a franchise is often easier than trying to get a loan for a startup. Since the franchise already has a history of success, lenders may be more likely to react positively to your loan application. Additionally, some franchise systems may handle the financing themselves.
Buying a franchise can have its advantages, but it is still a legal transaction with a complex contractual agreement. Before signing any legal documents, especially ones that have potentially major financial consequences, it is always wise to seek legal assistance.