Think McDonald's – the UPS Store – Super 8 Motel – and Dunkin Donuts. All franchises.
Most of the value in purchasing a franchise business is the brand name and other intellectual property licensed by the franchisor to you, the franchisee. If you select the right franchise, the pros should include instant market recognition for your business as well as access to trade secrets and other training and support that will help you succeed in running the franchise.
The cons to owning a franchise include
- restrictions imposed by the franchisor on how you can operate and market your business
- the chunk of revenue you must pay in franchise royalties, and
- the “threat” of being forced out of your business if you don’t perform up to the standards set by your franchisor.