Is Buying a Franchise More Like Buying a Job?

By: Lance Winslow
Submitted: 2007-01-17 11:43:31
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Some folks have likened the buying of a franchise to buying a job. In some cases this is true such as with the 7-11 franchises and the way they work. Inventory is automatically ordered and paid for out of deposits made and a check for the difference between the costs is paid two times per month.

Other franchises like Subway some have said is more like buying a job than actually owning a business. Why you ask? Well, because you take out a business loan for $160,000 plus and sign a lease and you must purchase all your products, paper cups and signage from the company. Meanwhile the average Subway Franchise owner only makes $2,300 to $3,000 per month per store. The answer to raising your income says the company? Buy more stores!

But in the end franchising is not like buying a job at all. Consider if you will "independent contractor" rather than a business "Sale" really when some one buys a franchise they are leasing the "business" abstractly and philosophically of course.

When you buy a franchise you are purchasing the rights for the use of a business model and brand name for the duration of the contract. That is nothing close to buying a job. It is more similar to leasing a Business Vehicle than anything else. You have the right to use the vehicle or business model for the term of the franchise agreement. So, think on this in 2006.

Lance Winslow

Article source: Expert Articles

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