Are you thinking about getting on board with a vending franchise?
Advantages and disadvantages are essential considerations for every would-be franchisee, whether you’re considering operating a vending machine franchise like those offered at Tubz, or a service-oriented franchise from a regional group.
Whether you’re looking into a nail art franchise, a foodie business opportunity or anything in between, we’ve distilled the key franchise pros and cons to help you make your big decision.
From the chance to be your own boss and set your own schedule, to the ability to hit the ground running with a proven business model, when considering franchise pros and cons, the positives loom large…
Be your own boss – For many individuals, being your own boss is the dream. Although you are answerable to your franchisor, franchisees are, in effect, their own bosses. This means they can run their franchise their way, setting their own hours, deciding on next steps and enjoying the freedom of working for themselves.
Flexibility & quality of life – The chance to be your own boss as a franchisee also allows many people greater freedom and flexibility in life. From single mums who juggle childcare and work, to retired individuals looks for a “side earner”, choosing the right kind of franchise opportunity can allow you more freedom and the flexibility to work in a way that suits your schedule.
Existing resources – We’ve all heard the terrifying statistics about startup failure. A huge proportion of new businesses in the UK will fail in the first three years, which brings us on to another huge franchise advantage: a greater chance of success.
With a proven business model and a wealth of resources already available, it’s much easier to succeed in franchising than it is to succeed going solo from scratch. From existing marketing materials, to tried and tested processes and existing supply chains, the risk of going into franchising is significantly lower than the risk of starting your own business.
Drawing on experience – Alongside marketing materials, supply chains and proven processes, a key franchise benefit is that you won’t be “going it alone”. Instead you’ll be part of a network of people with substantial experience in business – and your new business in particular.
From your franchisor who may offer training but will also provide ongoing support and expertise, to your co-franchisees who may also be able to offer advice and guidance, there is a wealth of experience available for new franchisees to draw on.
Predictable costs – Startups are expensive. Even with the most watertight budget in the world, unexpected expenses and costs will crop up, which make success incredibly tough. Franchising typically involves predictable costs which you will know about and can plan for up front, this allows you to budget effectively and manage money without unexpected costs.
But we’re not just exploring franchise benefits here. We’re talking about franchise pros and cons.
As with any business model, franchising isn’t perfect and won’t be the right fit for everyone. Here are the franchise disadvantages you should be aware of:
No complete independence – For many individuals, the business dream is to build a company of your own from the ground up. Although the majority of UK startups fail, this dream is enduringly popular. If it’s your dream too, franchising may not be the best path.
That’s because no franchisee has total autonomy; instead they must abide by their franchise agreement, laid out by their franchisor. This can dictate everything from where they operate to who they sell their franchise to in the future. However, different franchises have different rules, and if you want an opportunity with flexibility so you can run it your own way, you won’t have trouble finding one.
Investment risks – Like any business opportunity, franchising is an investment. That means it does carry some risk. Franchises may be substantially less likely to fail than independent startups, but it is still a possibility worth being aware of.
Franchising costs – While the predictability of business costs is a franchise benefit, there are many costs which franchisees must pay which startup founders will not need to cover. These can include costs like:
– The upfront cost of buying a franchise
– Management service fees
– A percentage of your profits
Weighing the pros and cons
So is franchising the right option for you? Which fork in the road will you take?
Once you’ve considered the advantages and disadvantages and reached your own conclusions, it’s time to take a closer look at the particular type of franchise you’re interested in operating, as franchise type can make a big difference to their suitability for you.
Our testimonials will give you some insight into what makes vending machine franchises a good fit for many individuals, while our business bundles page will give you a clearer picture of the costs and potential profits of franchises of this scale and type.
For more specific information on the pros and cons of vending machine franchising, please contact our team today via: firstname.lastname@example.org or 01795 414 480.