Thousands of new businesses start every year in the U.S. and many of those are franchises. With over 3,000 franchise brands, there are many options to choose from. Owning a franchise, like starting any other business, requires a business plan, an effective working team, and satisfactory financing. 

Advantages of Owning a Franchise 

The appealing advantages include: 

-Owning a franchise is not like starting a business from scratch. A franchise owner doesn’t have to create a brand name, create viable products or services, develop an operating system, find suppliers, and test the concept to determine its viability. Those things are ready at the get-go. 
-A franchise offers a defined identity and name recognition.  
-A franchise offers a defined operating system and a training program with operating and ongoing support.  An owner will get training on opening and daily operating practices, point of sale software, and more. 
-Guidance and assistance are provided for marketing and advertising the business. 
-A key aspect of owning a franchise is the purchasing power that a franchised brand offers.  
-Very importantly, a franchise owner benefits from easier access to financing. Most franchisors offer some financing assistance. Plus, many financing sources will be more willing to lend money to the owner of a recognized franchise versus a “from scratch” business. 

Disadvantages of Owning a Franchise 

First, it is important to know that not all franchises are equally appealing nor are they equally successful. It is important to choose wisely. The disadvantages of owning a franchise include: 

-Franchise owners need to know that they will have to abide by a franchisor’s rules, directives, systems, and contractual agreements. 
-There can be high startup costs and there are ongoing royalty payments. 
-Your operation will be linked with the success and reputation of the franchised brand. 

Seek Expert Franchise Financing Assistance 

Contact Capital Funding Source, for a wide variety of commercial funding solutions to help you realize your business dreams. We are a leading provider of alternative funding solutions for businesses of all sizes. 

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