Franchises

Franchises have really become a popular business opportunity in the US over the last few years.

A franchise is simply a business that someone has duplicated and gotten to work at other locations. If you don't believe me, grab a copy of Entrepreneur or any money making opportunity magazine, franchises litter the pages. You will find hundreds of business franchising opportunities ranging from small espresso carts to opening your own McDonalds.

The great thing about franchises is that they have a much higher success rate than the average business. US Government statistics say that three out of five small businesses are out of business within two years. This is not true with franchises. They boast an impressive success rate of over 85%.

You also receive a complete business plan and training in the new business that you are going to be operating. This can be a big benefit for people who want to start their own business, but don't want the risk of trying new things for the first time. With the ability to pick what you want to do, your chances of success, and the training you receive, you would think that a franchise would be the ultimate business... NOT SO

There are three things that people selling franchises don't like to talk about.

1. You are tied to the business. So many people nowadays want to own their own business, but they don't realize the huge sacrifice that they are making. I have friends that have had their own business and worked ten to twenty hours a week more than they did when they worked for someone else. They were actually relieved when their businesses failed. They could go back to work for someone else and get back on a normal schedule.

Did you know that in the US, the average small business would be closed in under 30 days if the owner/operator didn't show up? That is a pretty scary number. What if you are sick or need some time off for that dream vacation? You can forget about it with a franchise.

2. What kind of business are you going to open? You may have a hard time figuring out what kind of franchise you want to buy into. It is going to have to be something that you really enjoy doing. You are going to be working more hours than you are now, so it is important that you choose something that you can stay passionate about, more than the money. The franchise solution doesn't make that any easier.

3. Plan on spending $50,000 to $100,000. A lot of franchise marketers in the US would have you believe that you can spend $10,000 and open a great franchise. This just isn't the case. You are probably going to have to spend at least $50,000 to get any good franchise up and running.

After reading this I think you can agree that franchises may not be for you. You are better off looking for something else.

Matt Gagnon