Ep.218: Franchising 101: What You Should Know

Sean: First question would be from Erika. And she asks, what are the pros and cons of investing in a franchise? First, if you're going to invest in a franchise, you're going to need money upfront. So that is a con, because if you're going to be starting up on your own, you don't need to give upfront money, which might be a big amount, depending on what brand you want to franchise. If it's already a big well-known franchise chain, of course, you're going to need to pony up more cash upfront. The big pro of buying a franchise is you already have the system, you already have the brand name. All you got to do is apply everything and it's quite proven to work. So your risk of losing a business or having your business failing is a lot lower. The risk is a lot lower. That is the big pro. Another con is there are restrictions, of course. It's not your own brand and it's not your own business. It's a franchise, so you can't do pretty much anything or everything you want to do in it. You have to be agreeable to be under the authority of the brand. That for me is a con, but it depends on the person. Some people will find it a pro because they're just following the parameters or the guidelines. Some people will see it as a con. I personally see it as a con because I am the kind of person who I'm excited to set the direction and pace for the business. And yeah, I think those are the major pros and cons for me. I'm not going to make it long. What do you think, JM? JM: I think I can just share based on experience. I haven't had experience with franchising yet, but right now I am currently helping my brother with their startup business. So thinking about starting a business as well, I think with franchising one of the pros is that you'll be able to already skip the most crucial thing and that is, planning everything from scratch. So I think that's one of the pros when it comes to franchise. But the rest, you already mentioned with the cons. And if you're someone who is really into the creative side as well, you get some kind of fulfillment as well when it comes to starting your business from scratch. So as you mentioned earlier, also, it's very fulfilling for you knowing the direction where you want to go. Right? And I think you mentioned it very well with the pros and cons of franchise. Youtube: https://www.youtube.com/leadershipstack Join our community and ask questions here: from.sean.si/discord Facebook: https://www.facebook.com/leadershipstack