Why Buy a Franchise Basics

So you're thinking of buying a franchise?

Chances are, if you've thought of striking out on your own and starting a business, somebody has suggested that you buy a franchise. Odds are also good that someone you know has urged you not to buy a franchise.

An individual can buy into the franchise, often spending tens/hundreds of thousands of dollars to run a retail store, a home service business, and so on. The franchisee then pays an ongoing franchise royalty fee out of its sales to the corporation. Whatever's left over, and hopefully it's a lot, the franchisee keeps.

That sums up franchising in its most basic sense, and your friends and colleagues are all right. There are good reasons to buy a franchise—and good reasons not to.

As you explore franchise opportunities – here are some basic things to be mindful of as you go through the process. 

For more information on this topic, please reach out to Wayne Scherger, the President of Next Steps Systems.