Franchise: What Is Its Status?

The Franchise model of business has its own advantages and disadvantages. I have never owned any; so don't have a first hand experience. The big downside is that it needs lot of seed capital to start; but the parent company will take care of establishing your business with a known brand and operations. For example, I've heard that if you're setting up a restaurant, franchise model works the best if you don't have prior experience (but then getting accepted in the franchise program becomes a little difficult).

For those with little money; start small & think big.

The_Big_KThe Franchise model of business has its own advantages and disadvantages. I have never owned any; so don't have a first hand experience. The big downside is that it needs lot of seed capital to start; but the parent company will take care of establishing your business with a known brand and operations. For example, I've heard that if you're setting up a restaurant, franchise model works the best if you don't have prior experience (but then getting accepted in the franchise program becomes a little difficult).

For those with little money; start small & think big.

Say if you can arrange seed capital and get selected in franchise model, what are the other drawbacks that one faces in your opinion?

The biggest drawback is that you can't call it your brand and depending on the contract, you'll be working for another (parent company); which might require you to share your profits with them. In a case when the original brand gets negative publicity; your local business suffers for no reason! In short, the biggest advantages are 'High Initial Costs' & 'Dependency'.

Here is something for general public.
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Meanwhile I am looking for responses from other CEans. Has anyone availed franchise option?