3 Reasons Why Franchising Might Not Be For You
From a consumer standpoint, franchises can be great for products or services consumers shop or use nationally, or on impulse, such as restaurants like Subway or McDonald’s. Pet boarding and daycare tends to be a different type of decision though—-people are not going to let their precious pet stay just anywhere. Ask your friends if they know the name of a national dog franchise; you’ll probably find brand awareness for many dog boarding franchises appears to be very low, and, for some of their locations, they are not always held in the highest regard.
So rather than following the cookie cutter franchise formula, and pay out a lot of money, utilizing Best In Show can provide you with the resources and knowledge to help you create a resort in your own vision. Here are some comparisons to consider in your decision.
Franchises can also be very costly to set up and run:
Initial franchise fees are usually about $40,000 – $50,000.
Additional monthly franchise fees can run over 7% of your gross sales!
2% or more of this goes to “national marketing funds”…..check out this recent article :
Franchises can have strict limitations on your business:
Where you can locate your business – or expand your business.
How you market , advertise, and run your business.
How and when you can sell your business.
Negative publicity on the franchise and other franchisees can be negative publicity to you.
A final word- franchising is a viable solution for some people, but its not for everyone. If you are interested in franchising, at least try to talk to some of the existing franchisees under the same brand. Try to get a good feel for how they feel about the support they receive, and ask them ” if they had it to do over, would they do the franchise route again ?”
If you would rather consider another route to get industry expertise…………..