Franchising has both pros and cons. Lets start with the pros! First of all, you operate with a recognisable brand. You don’t have to make your brand stand out since most of the times you will obtain a franchise license for a brand that everyone knows. In addition, the franchisor will have already built an effective business model which will be communicated to you. In addition, the franchisor is responsible to help you and transfer the know how that is necessary to operate your business.
On the other hand, there are disadvantages too. First of all, you need to be aware of all your obligations and legal advise is highly recommended for such movement. There is also the initial start-up cost since most franchisors request payments to buy the right to operate with their brand. There might be restrictions regarding the products that you sell, the offers that you run, the supplies that you buy and above all the suppliers that you use. It is essential that you know exactly where you are going to buy from, the degree of freedom that you will have to sell your products and the margins that you will have.