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What are your Alternatives to Owning a Franchise?

Franchises are tightly regulated as to what they can and cannot do. The Federal Trade Commission has oversight in the franchise world and Franchisors walk a tight rope when it comes to selling business models under the franchise brand.

Owning a franchise might not be for everyone.

A lot of business people would rather purchase an independent business themselves and run the business according to a business model they have chosen. One of the problems with this is that franchise concepts are already proven to work and for the most part, they make money.

Still, if you are not the type to follow along, you may seek other business ventures. For instance, when you buy a franchise everything is planned for you. Take the example of a restaurant in which menu items are already calculated and devised. You cannot go into your store and begin to create new items and offer them for sale. It defeats the reasons why you purchased a franchise model in the first place.

Taking the same example, you may want to invent a new recipe, but in doing so, you sway away from a plan that has already been proven to make money. Costs are already calculated and profit margins are set. If you change this system, you take the chance of losing money and making the franchisor very unhappy.

Alternatively, if you are a careful business person with a keen eye for costs and profit margins, you may be better suited to owning your own store with a concept that will allow you to be creative, to venture beyond the tried and true. Be careful though because what may be popular today may no longer capture your customer’s fancy tomorrow.

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