What you will get once you put your business into franchise

There are two different perspectives people have about franchise: either company starts the franchise when they have reached the success of the business or franchise is a way to reach the success. Well, disregarding that option you choose, there are some important thing you should put in your mind ‘bank’ before you make your decision, especially regarding possible advantages and disadvantages you will get from turning your business into franchise mode.

This section begins with an important fact. You should know about the success of a franchise business. As Dow Group UAE reports, the world knows no way to determine whether you have made the right decision or not by putting your business into a franchise instead of thorough business evaluation which you cannot do by your own. Unless you are also an expert in the franchise business, you require help from a franchise attorney or consultant in evaluating your franchise business.

Like other businesses, franchise offers both benefits and risks at the same time. There are many of them which are worth all of your concern, but we have concluded them into three options for each benefit and risks.


By choosing franchise as your business strategy, you have opened your own access towards better talent than you have today. Franchise allows you to gain two things at once: people with the best talent you are looking for and people with dedication to developing your business. In a franchise business, people usually come for a job because they want to dedicate their time in developing their skills by growing the company. For these people, salary is important, but not the most important one.

Second benefit talks about easiness you will gain in expanding your capital. There are various reasons experts believe to lie behind this fact. However, we know one thing for sure. Franchise allows companies to gain more access than normal to develop a business without risking current capital or borrowing money from financial institutions.

Third benefit talks about business growth risk. Unlike other business strategies, franchise allows you a unique rare in reducing risks your business should face, while at the same time increasing financial return. It is because people put less money in a franchise business than typical companies, including in business development. In addition, if you ‘luckily’ developed not only your business capital, but also business model, you will also be able to earn loyalties from your customers who come to your outlets.


Some people describe franchise as business development strategy when instead of building branches by yourself, you ‘invite’ people to do it for you. Well, it surely reduces development cost you should spend. However, you should know that it also means that you are not eligible to tell your franchisees about what they should and should not do. Even though your franchisees know your business name, they stand completely as independent companies. In addition, they may also have a different perspective about how to develop the business that leads to different goals with the main company. Sometimes, these differences cause conflict and legal problems when both sides do not perform a clear communication.

Another risk about franchise that is worth your concern is weak business core community. You should understand that, due to its business nature, it is difficult to ask both your franchisees and store manager whom you hired yourself to work together as a team at one desk. There is always a strong competition among franchisees like KSL Logistics which they believe will determine the best among the best. At the beginning of the franchise, it is good to see the competition among your franchisees, but it will turn to ‘nightmare’ if you just watch and do nothing. Everyone will only come to your franchisees and leave your company. So, even since before you decide to start a franchise, you should consider about this competition possibility. There is, of course, available solution you can use to deal with the problem, but it requires money and sometimes you should also compromise with contract both your franchisees and you have established through legal process.

Innovation becomes the next risk you should deal. Through some business studies, experts found that franchise increase difficulty in performing business innovation. The problem is even higher than if you choose to do it with your own business outlets. In a franchise, there is one universal law. Any time you come with an idea, you should take it into the the negotiation with your franchisees just in order to get their permission for the idea implementation.

Everything has its risks and benefits. However, you should put more your concern than before when it comes to business. Your life is not the only one you put on the business. So, you will make a good decision if you take your time in consulting with your franchise attorney, but only after you have considered all the risks and benefits. Franchise does offer an excellent business development tools, but it has never become the most ultimate tool in business expansion. Consider everything carefully.