Franchises:
Purchasing a franchise is buying the right to use a name, product, concept and business plan. The franchisee will receive a proven business model from an established business.
Advantages:
All of the business operation processes have been established. The franchisee receives help from a network and customers may already familiar with the name. The marketing strategy has already been put in place. Most all of the risk associated with starting a retail business has been reduced.
Disadvantages:
Franchisees pay a fee, or royalty, based on sales each year. Startup costs relating to the franchise may be high. One of the biggest disadvantages of owning a franchise is the lack of flexibility and freedom.
Support:
Franchisors usually provide all the marketing, training and on-going support needed to run a successful business.