There are advantages and disadvantages in buying a franchise rather than buying or starting an independent business. Some of these are listed here.
Advantages:
Note: not all franchise systems will include these factors listed below.
association with a well established brand, reputation and product or service;
assistance with site selection, lease negotiation, site development, builders and shop fitters;
assistance with outlet design and equipment purchasing;
initial management training and continuing management assistance;
access to group/national market research, along with advertising and merchandising assistance;
access to established standard procedures, operating manuals and stock control systems;
assistance in securing finance and sometimes financial assistance in establishing the business;
access to financing packages which may be more attractive and easier to access than for non franchised businesses; and
access to established financial systems and checks which can provide early warning signals to highlight trouble spots.
Disadvantages:
less autonomy in some business decisions (franchisees generally have to operate the business according to the franchisor's operations manual);
restricted territory in which you may operate and/or promote your business;
ongoing payment of fees to the franchisor;
less control if you decide to sell your franchise business as there will be a set of procedures for you to follow, including getting the franchisor's approval of the buyer;
if you sell the business you will usually have to pay a fee to the franchisor as outlined in the franchise agreement;
restraint of trade provisions on the sale or termination of the franchise that may be more onerous than required if a non franchised business is sold;
at the end of the franchise term, the franchisor is not obliged to renew the franchise, in which case the business and its goodwill revert to the franchisor.