Professionals planning their exit strategy from the c-suite seem to be moving away from startups and into franchising. In theory it should be easier to buy an existing brand compared to building a new business from the ground up. A franchise has already been tried and tested and comes with corporate support as well as customer loyalty. So why isn’t everyone with money and business savvy jumping on the franchise bandwagon?
According to FranchiseWire, 2023 will be the “best year ever in franchising”. There are more franchising opportunities today with lower start-up costs than ever before, and today’s technology can help enhance customer experience which is integral to the success of any business. Yet there are some downsides to franchise owning and the biggest one is the lack of control a franchisee will have over their day-to-day.
- A franchise owner can’t make independent decisions based on market changes as products, services, and prices are set by the Franchisor.
- Franchise owners must pay royalty fees to the corporate office which can cut into monthly profits.
- Most franchise agreements are written in favor of the Franchisor giving them the ability to make unilateral changes which can result in the franchisee incurring additional fees.
Experienced professionals have what it takes to own a business. And investing in a business can be profitable. Choosing between a startup or franchise comes down to personality. Can the business owner enjoy the benefits of running a business while accepting direction from the corporate office? Or will he or she have to have complete and total independence to feel fulfilled?
Alloy Wealth Management is a Carolina based company and one of our neighbors made Entrepreneur’sFranchise 500 List for 2023, Zen Massage® USA. That is a pretty big deal so we congratulate them. But there are many resources for those searching for franchise opportunities. Franchise.org , Franchise Direct, and Franchise Opportunities, to name a few.
No matter the direction you choose, reach out to us for services that can help make your business more financially sound. We offer Tax Planning, Retirement Planning, Estate Planning, Insurance, and Investment Management services.