What are the Advantages and Disadvantages to Franchising Your Business? | Franchise Law Blog

What are the Advantages and Disadvantages to Franchising Your Business?

This is a topic that comes up often for successful business owners and entrepreneurs looking to expand their business. In a recent video "The Advantages versus Disadvantages of Franchising" I discuss the following "Advantages of Franchising" that include:

  1. Expansion – Franchising is a business model that allows you to expand your business;
  2. Capital – Franchising affords you a ready source of capital. That is‚ franchisees invest their own money in expanding your business through the establishment of franchised locations; and
  3. Managerial Skill – Expansion requires management. And franchising offers a ready source of willing managers who will be your franchisees. Best of all‚ they will have a vested interest in the success of the business.

Some perceived "Disadvantages to Franchising" include:

  1. Regulation – Before you offer or sell a franchise‚ you must work with a franchise lawyer to prepare your FDD and satisfy franchise regulation; and
  2. Relationships – As a franchisor you will have "franchisee partners".

I go into more detail and you can learn more in my videos "The Advantages of Franchising" and "The Disadvantages of Franchising".


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Date: 04/18/2013 | Category: Start a Franchise

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