People who have the capital or money for starting a retail business can either start from scratch or buy a franchise. There are advantages and disadvantages to both scenarios. However, franchise owners enjoy certain benefits that can increase their chances of success.
Significance
People who own franchises share the benefits of a common brand name with which potential customers can identify. Those who start traditional businesses must work at gaining brand awareness and acceptance.
Function
Existing franchises usually come with their own unique operating systems for running the registers as well as tracking inventory and costs.
Benefits
Franchise businesses almost always provide training for new franchise owners. The new owners also have the continued support of the company as they build their business.
Effects
Franchise owners can benefit from national advertising exposure and marketing support for their business, unlike traditional businesses.
Considerations
Some franchise businesses, such as restaurants, can be very expensive. Those who operate their business on a smaller scale can often start with less capital and build their business at their own pace.
