If you own a business in Georgia and are looking for ways to expand your reach, franchising may be one option that you consider. Establishing and selling franchises can be a viable and financially feasible way of growing your operations, even beyond the borders of the state. However, before you take the leap and start promoting franchises for sale, you should carefully evaluate the pros and cons to this path.
As explained by Entrepreneur, one of the reasons some business owners choose to franchise is because it can reduce the need to rely on business loans or seek other forms of investment capital. The funds received from the sale of every franchise provide a welcome flow of capital into the corporation. Because of this, there is also a reduced level of risk insofar as there are no lenders or investors to be concerned about repaying if a business is struggling.
On the downside, as a franchisor, you will have less control over your business than if you owned every aspect of it. You naturally have to cede control of some elements over to your franchisees. This includes day-to-day management of employees who are the face of your business to the public. And, while franchisees should be highly motivated to succeed with their businesses, you will not have the synergy of everyone working toward a common goal that non-franchise organizations have because each franchisee may focus just on their individual business rather than the corporation as a whole.
To learn more about the pros and cons of buying and operating a franchise, please feel free to visit the entrepreneur opportunities page of our Georgia business and commercial law website.