How a Franchise Agreement and a Franchise Disclosure Document differ
There are two documents that are of vital importance...
Mistakes are Expensive
It’s not uncommon to hear people who have started their own
businesses, outside of franchises, admit to making some expensive
mistakes. Sometimes those errors destroy the business, whereas
other times they simply put a massive dent in profits, impacting
how much the owner actually receives.
How do independent businesses stack up?
There’s no one universal answer when it comes to the success of
independent businesses, but the statistics don’t seem to favor
them. In the U.S., for example, the common theory is that about
half of all startups will fail within one year, and another 85
percent will fail over the first five years. Most, if not all, of
these failures stem from mistakes made by the owners.
Even with those statistics, it’s easy for people who want to start
their own business to become convinced that they will defy the odds
and be the ones who make it. After all, it’s easy to see mistakes
in hindsight, which is often 20/20.
Why are there so many mistakes in independent
businesses?
Businesses appear deceptively simple on the surface: make a great
product or offer an excellent service and the people will
come.
In all reality, from money issues and legal concerns to marketing
to location area demographics, there are a lot of potential traps
that can catch independent business owners off guard. Without help
and guidance, the life and death of the business relies solely on
the owner, and that is a tremendous responsibility. One massive
mistake or too many small ones can kill the whole thing.
What about franchises?
Franchise owners tend to fare better than independent owners simply
because they receive the help, support and guidance of the
franchiser, who has experience with everything from the brand to
proper location sites and consumer research. A franchise owner also
has a better idea of what he or she is walking into because
franchisers must provide disclosure documents that help spell out
the health of that particular company.
If you’re looking to own your own business, consider a franchise so
you have the ability to avoid sinking the ship. Visit BetheBoss.ca
today to get more information about opportunities in the areas and
industries you’re interested in at an investment level you can
afford.
