The small business franchise can be a good option for the small business owners to start their own business. Getting franchise from a famed and established company may be beneficial for the small business owners. The biggest advantage of starting own business is that there is no one to report to.
There is always a great opportunity for the small businesses to grow. The government also grants some tax deductions for the small businesses in order to promote the small business industry. The most profitable small business franchise sectors are fast food, travel business, healthcare, restaurant, IT, healthcare, retail, health and beauty care and business services.
Granting small business franchise is profitable for the franchiser companies also. This system helps them to expand their base and cover a larger portion of the country. The companies provide training while granting franchise to the small businesses.
In order to run a successful small business franchise, the business owner must be aware of some of the guidelines necessary in order to run a franchise business. The franchise businesses are now expanding in the international level also.
The global food giants are now opening the franchise service in almost every big city of the world. Some of the most famous food chains having franchise in international level are – McDonald’s, Sub way, Pizza Hut, Domino’s, Kentucky Fried Chicken, etc.
The biggest advantage of small business franchise is that the franchiser company is generally a successful company and hence can support in the operations of the business. The system suffers from some disadvantages also and they are � loss of control over the business, big up-front and ongoing fees to the franchiser, risk of unprofitable location, etc.
While going for a franchise business, some information that the small business owner should know are – financial statement of the franchiser, information on whether the franchiser is experiencing any franchisee lawsuit, profit and loss statement copies on the franchise location, etc.
Last Updated on : 29th July 2013