Franchising makes bad business sense for entrepreneurs.

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Why? I can’t believe you are asking that question. Look, for the people who started the particular business you are looking to franchise, it makes good business sense perhaps, but not for an aspiring entrepreneur who wants to make something out of nothing. Here are the reasons why I think it sucks, big time.

1. It kills Creativity : The franchiser would tell you how to make your visiting cards, the colours you ought to be using, the business processes, the type of sofa sets you got to be using. Everything. So what is your role here? Purchasing agent?

2. It really isn’t your baby : hell, it isn’t even adopted. I mean, your business would like a military school where the chain of command really sets the protocol. You just follow orders.

3. It is indeed expensive : You just don’t pay up the actual expenses, you also have to add the so called goodwill for the brand and the know-how. If you just thought about it over coffee for a day, you would thought of a better idea.

4. It is common place : Hear this, you aren’t even unique. There are many others doing the same thing you are doing. You don’t have competitors, you have a brotherhood. Doesn’t excite me.

5. It is no challenge : It is an exercise. An expensive one at that. You should be called as an operations manager and not an entrepreneur. You put up cash, you run the show as they ask you to. A mere manager you are for a job you own. Quite a price for a job like that.

Try the cheapest and easiest of businesses to run. Even something like a lemonade stand would do. Not this franchising thing. Never.

One Response to “Franchising makes bad business sense for entrepreneurs.”

  1. on 06 Feb 2008 at 8:43 pm Deepak

    One of the most different articles I have read on franchising so far.
    Keep it coming. Cheerz..!!!

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