April 11, 2016
Owning a franchise is a potentially lucrative career, especially for someone who prefers to work for themselves instead of having a boss. The ownership of a UPS franchise, for example, is a great way to avoid the typical pitfalls of starting a small business, such as the lack of capital, assistance or brand recognition. However, owning any franchise, even one with a successful company’s name, is not for everyone. Here are three things to consider before making a commitment.
When you own a franchise with UPS or a similar company, you own one store in one location. Most contracts do not allow you to own other stores in different cities. This means that you are tied to the city in question for the duration of your franchise contract. If you value stability, this is a great arrangement. If you are young and want to explore different cities, maybe you are not ready for a franchise yet.
Even though companies provide assistance for franchise owners in terms of the finances, there are a lot of costs that go into opening a franchise. For one, you will no longer have a steady income. What you earn depends on how the store is performing. This is not a small commitment and it should only be made if you have decent savings that can get you through the first few months of starting the franchise.
3. Record of Success
The only time you should consider owning a particular franchise is when that company has a long record of success. Having a record of successful franchise owners means that this company has a system in place to help new franchises. They provide assistance, guidance and support throughout the process. This makes everything a lot easier, because you are no longer “alone” when you run into trouble.