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Author: Flavia Totoli

Legal Guide

14 Must-Know Pros and Cons to Buying a Franchise Business

A franchise is a business model where the franchisor (the owner of the business) grants the franchisee (the individual who buys a franchise location) the right to operate a business using the franchisor’s trademark, products/services, and operational systems… or in other words, a franchise is a business in a box!

Buying a franchise can be a great opportunity for those who want to own and operate their own business, but it’s important to understand the benefits and drawbacks of this business model before making a decision. 

A franchise brings many benefits including access to an established brand, ongoing training and support, and a proven business model. Unsurprisingly, this leads to strong business and financial performance – franchises created $790 billion in economic output in 2021.

However, despite all their benefits, buying a franchise isn’t all sunshine and flowers. There are several drawbacks to owning a franchise, including limited autonomy and control and high dependency on the franchisor – making a potential exit from franchising a potential nightmare.

Want to know more about the pros and cons of franchising?

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