Does Buying a Franchise Mean that You’re Buying a Job?
You may hear some people say that buying a franchise is very similar to buying a job. In some cases, they’re not very far off from the truth. How 7-11 franchises function is a good example of this. Inventory is routinely requested and then paid for by money from deposits, then a check is made out twice monthly to cover the cost differences.
Another good example is franchises such as Subway, where it’s more of a job than an actual franchise. Mostly because after taking out a loan and signing a business lease, you end up buying all your supplies from the company The average salary ranges between two to three thousand a month and the only way you can raise this figure is purchasing even more stores.
A deeper look however, will reveal that franchising is not really a simple matter of a job being bought. A better description would be that franchising is like leasing a business rather than buying it. You buy the rights to a business model and a brand name which come with certain requirements in the way you run your business as stated in your contract. So far, not very much like a job, is it? Think of it as renting a car, you can’t change the car’s make or color but you’re free to drive it wherever it can go. Keep this in mind before becoming involved in franchising.
Filed under: Buying a franchise, Franchise Talk
