9/26/2005
Buy a Franchise? What Entrepreneurs Should Consider
by Herb Lawrence, Center Director, ASU SBDC
When considering starting your own business should you start one from scratch or buy a franchise? How do you know which is the best choice? If predictability and security are important to you then being a franchisee may be a better route. Some things to consider include:
1. Your comfort level with the unknown: The franchisor usually has procedures in place to reduce guesswork.
2. How you feel about bosses: With a franchise you will answer to the franchisor especially where there are brands or trademarks to protect. You will have to do some things “their way”.
3. How much help you need: Franchisors usually provide a lot of marketing and advertising experience, they know what works for their franchise.
4. Consider the costs: Buying a franchise is usually more expensive than going “solo”.
5. It is often easier to get bank financing where a franchise has a good track record. The U.S. Small Business Administration maintains a list of franchises that qualify for a streamlined review process for SBA loans at the SBA Franchise Registry at http://www.franchiseregistry.com/registry/.
For more information about franchise opportunities contact your local Arkansas Small Business Development Center at http://asbdc.ualr.edu/locations.
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