Franchise Business Ownership Essay

(Why would you prefer to buy a franchise than to start a new business or buy an existing business?),
I would prefer to purchase franchise than to start a new business or existing business because as a first time business owner I will be able to gain experience with a guiding hand. A franchise offers a product or service that has been proven to sell and you do not have to reinvent the wheel.   The customer is familiar with the products and services and they have already been proven to sell. (Hatten, Pg 113).   When purchasing a franchise you receive marketing expertise from the franchisor.   The franchisor spends a lot of money to advertise nationally and regionally to build an image.   A startup or existing business would not be able to afford that type of exposure alone.   There is usually an advertising fee for franchises based on gross revenues. Depending upon the franchise you choose, the franchisor provides financial assistance to new franchisees.   The financial assistance is usually in the form of inventory, overhead, trade credit and the procurement of real estate for the business site. (Hatten, Pg 113)   Beginning a startup you would have to sell your idea profitability potential receive funding from a financial institution or investor and an existing business you would have to either find financing yourself or work a deal out with the current owner.
There is a great opportunity to learn how to own and operate a business that you might not otherwise be completely familiar with a franchise.   In starting a new business you must know all the ends and outs of the business and create a business plan before getting started.   An existing business requires a lot of research of the business before you purchase. In order to start a company from scratch one has to be extremely self motivated, network, research, have an entrepreneurial spirit and have good business skills. (Newport, 2009) A franchisor offer assistance for the franchisee to get started quicker and easier....