Franchise businesses aren't for everyone. Some people love them and have made a real success out of buying into one. Other people would rather make their own way in their own business; there is nothing wrong with either model when it comes to starting a business.
But there is no denying that franchises do have some distinct advantages over other businesses that are started from scratch. As such, they do suit some people over others, so let's see what advantages you can look forward to if you decide to try your hand at investing in a franchise business.
Firstly there is the question of branding. Creating and developing a strong brand, including brochures, leaflets, marketing material etc. - is no small task. In fact trying to do this on your own with a self made business can be very expensive and time consuming if you want to go up against the bigger companies that form your competition.
With a franchise you have less to worry about because you are purchasing a brand that has already spent a fortune on branding. If they had not, you wouldn't be investing in them in the first place, would you?
You may also find you have an exclusive territory as part of your franchise agreement. For example let's suppose you buy into a franchise which allows you to set up a coffee shop. The company selling you the franchise will probably make sure that no other franchisee within their company will set up within a certain radius of your coffee shop. Of course this doesn't stop the competition doing the same thing, but at least you are not competing directly with another branch of the same company.
You should also be able to benefit from the fact that you are not starting a business from scratch. This means a lot of tasks you would normally have to think about and do as a newbie business owner will already have been taken care of on your behalf. If you bought a franchise from McDonald's for example, you know already that all the products are there, the costings have been worked out carefully and you can make a profit. You know roughly how the business works and what goes on simply from visiting a branch yourself.
When you create something from scratch you don't have any of this. If you were to open your own burger bar you would be in competition with McDonald's. And since the company is already well established you would have an uphill climb to try and ensure you get the level of success you want.
You can see then that buying into a franchise comes with many benefits. The real task is in finding the right business model for you. If you don't pick the right opportunity for you, you could end up making an expensive mistake. There are definitely plenty of advantages to becoming a franchisee, but you need to ensure they are profitable and will work in your area. Choose one that also complements your skills and talents.