Franchise or my own business
by Lazaros Chasomeris
When you want to run a business unit the question that obviously arises is whether to take franchise? It depends on a host of factors whether you should run a franchise or go on your own. Take for instance you want to run a restaurant. You have the option of taking the franchise of a reputed chain of restaurant or run your own.
Now in the case of running a restaurant, taking a franchise means you trust more in the brand name of the franchiser rather than in your own brand name. If you have experience in the service industry and know that you can only take good care of customer service but cannot offer great dishes, then franchising is the right option for you.
You take the franchise for a particular group of restaurants, in exchange of a considerable amount of money. They give you trained cooks and chefs and secrets to their recipes, which you use to prepare dishes in your restaurants and sell to customers.
But on the other hand if you have great culinary skills or know great cooks and chefs who are ready to work for you, why should you go for franchising? If you can prepare lip-smacking dishes yourself wouldn’t it be unwise and a waste of your talent by not letting it bloom. You would do well to start off on your own and market your dishes. If customer service is not your strong point then you can hire people who are good at it.
Whether you should opt for a franchise or do it on your own is simple: if you can prepare or produce the product you want to market then there
is no need for franchising. But if you cannot prepare or produce the product but are good at marketing and customer service then you should prefer running a franchise.
Running a franchise would require you to pay an initial amount to the franchiser, where in they will give permission to use their logo and brand name in your business. They will specify the design of your shop or business establishment. They will train your personnel. Of course you will benefit by way of advertisement, which they will cover. At the end they will take a share of profit on each of their brand named item sold by you.
Franchise ensures a steady business, assuming that you run the franchise of a good moving product or service. Running your own business involves taking more risk but higher returns and more freedom.
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