Is Franchising a Good Idea for a Newbie Entrepreneur?

Franchising is where today’s smart money is being invested. How great it is to get the benefits of running a business without having to take care of marketing, branding, business modeling, having to choose a location for your business, etc.  Franchise owners do everything for you in exchange for a royalty and a small initial investment. However, it is imperative to find out which franchises are worth investing your money in?

Pros of buying a franchise

1. You can start a business today

You can literally start a business today without having to invest a lot of money. There are home healthcare companies who let you become a partner by paying a nominal fee. You can sell their products from the comfort of your home.

2. Training and set-up are provided by the franchise owner


Franchising is a good idea if you buy a franchise like Mc Donald’s or Subway–which are popular worldwide. As a newbie entrepreneur, you are not risking any money by buying a franchise that has a proven track record of success. Moreover, they also provide training and set-up for your shop or outlet.

3. You can jump into unexplored territories without any hassles

Another reason why franchising is a good idea is: you don’t need to have a culinary degree from a reputed college to own a franchise like Mc Donalds or Burger King. Once you buy a franchise, they provide all the recipes and machinery required to produce the end products.

Cons of buying a franchise

1. You have less flexibility

Even though you are your own boss and the CEO of your own organization, you still have to follow the rules and protocols provided by the franchise owner. You cannot fiddle with the products or services. This makes you less in control of the administrative side of the business. So, franchising is a good idea only if you agree with the terms and conditions of the franchise owning company.

2. Not enough learning

As a newbie in business, you better start something of your own and learn from your mistakes. Owning a franchise is very similar to being an upper-level management person who is responsible to lead a team and make a certain amount of money per month. You will also have to send sales reports to the franchise owner which, in a way, makes you their employee. Hence, your mind won’t grow as you don’t have to do any creative thinking in this role.

3. You are not the true owner of your company

After buying a franchise, you may feel like a boss for a few days but are you really the true owner of your company? You were not involved in the business model or idea creation. You are basically a partner to the franchise owning company.


The is no one answer to whether franchising is a good idea or not. It depends on which franchise you select and if the right location is available or not. You may buy a franchise for Subway but the people in that area hate sandwiches then you are not going to make enough money.