Despite being seen as a relatively safe way to start up a new business franchising still has its risks and needs to be considered extremely carefully, industry experts claim.
Matthew Shay, president of the International Franchise Association, says those looking to buy a franchise need to be sure the business model is right for them before jumping in with both feet, otherwise things could turn sour.
He told the New York Daily News that despite all the advantages of investing in a well-established franchise there is no absolute guarantee of success.
Indeed there are some considerable costs to pay upfront when buying into a franchise, and franchisees will also have to commit to ongoing payments for advertising, supplies and other outgoings.
Mr Shay and other experts say that those who do not posses the skills and qualities necessary to run the businesses efficiently from day one, or who fail to plan sufficiently for every eventuality, could find they are losing money fast.
But despite the risks those within the industry stress that franchising has many benefits, and they advise potential franchisees to speak with a number of franchisers and conduct some thorough research in order to assess their compatibility with various franchise ventures.
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