By Liz Kudwa
A: Franchises can be a less risky path in the world of small business but there are definite advantages and disadvantages to operating a franchise. Some key advantages include having established brand name recognition, marketing support from the corporate office, you don’t have to re-invent the wheel because you’re working with a proven business concept, and training assistance and managerial “know-how” are usually part of the package. Some key disadvantages include a lack of independence. Your creativity will be somewhat limited and the corporate office usually calls the shots. That will also be some inflexibility. Franchisees are bound by their franchise contracts to operate the business in a certain way. And it takes considerable time to thoroughly research a franchise. Choosing a more established franchise can be a more financially secure choice.
If you would like to read more on franchising, I recommend the following titles.
o Franchise Times Guide To Selecting, Buying & Owning A Franchise by Julie Bennett
o The Unofficial Guide To Opening A Franchise by Jason R. Rich
o Better Business Bureau Buying A Franchise: Insider’s Guide To Success by the Better Business Bureau
The January 2009 edition of Entrepreneur Magazine also includes the Franchise 500 which is a list of the top 500 franchises in the country. The list contains information such as how long the franchise has been in existence, the number of franchises, start-up costs, etc… They also have selected some markets that are “hot” for franchises in 2009.
Senior Care: Very viable category due to growth in the baby boomer population. The U.S. Census Bureau projects there will be a substantial increase in the number of seniors between 2010 and 2030, after the first baby boomers turn 65.
Frozen Yogurt: Pinkberry and Red Mango are the two hot franchises in this category. This is a great market due to consumers becoming more health conscious. Consumers want a healthy diet without sacrificing taste and frozen yogurt offers both!
Children’s Services: According to Entrepreneur Magazine, even in the worst of times, franchises serving children’s needs continue to grow. “If you’re taking care of the children, then consumers will take care of you”.
Fitness: Health and wellness have been a top concern ever since headlines warning of obesity began to regularly appear. Niche fitness concepts will become more popular, like boxing, prenatal fitness, and postnatal fitness.
Elizabeth Kudwa is the Business Reference Librarian at the Capital Area District Library located at 401 S. Capitol Avenue in Lansing, MI. Contact her at 517-367-6301 or by e-mail at kudwae@cadl.org.
