About.com: Buying a franchise is a dream for many aspiring small-business owners.
There are conflicting opinions as to whether franchises tend to be more successful than independent small businesses, but this much is clear: Franchises are expensive to buy, carry the same risks as any startup business and require plenty of sweat equity to make them profitable.
“Buying a franchise is a serious, serious business, and one should contemplate the downside,” says George Naddaff, chairman of the KnowFat! chain of restaurants, who created franchises including Boston Market and Sylvan Learning Centers. “The danger … is that every franchise is a startup.”
Franchising allows entrepreneurs to take advantage of a proven business model and do business under a brand name that already enjoys market recognition and a loyal customer following.
As a franchise owner you will probably get support from your franchisor, which is one advantage over owning an independent business.
Buying a Franchise is Serious Business [About.com]
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