7 Pros And Cons Of Franchise Opportunities And The Winning Alternative For 2023

Author: Stathis Carapanos

SHORT STORY: In 2017, my father’s radiology center went bankrupt. This event has been a big shock for me and my family. The bank took our house and we experienced two very difficult years. I was a stressed Export Manager in the food industry at the time, and I promised myself I would find the way to make enough money to take our house back. That's how I decided to start my own business. I spontaneously thought about starting a franchise business. Since I could not afford to fail, I had to be certain that the shot I was going to take was the right one.

I spent almost 3 years analyzing more than 100 cases of people who bought a franchise, won and closed their doors after a few years. The outcomes were incredible. Some of them were forced out of business because over the long term due to the fact they could not generate consistent ROI. However, it turned out that the majority shifted towards other business opportunities because they reportedly felt frustrated by the lack of flexibility and autonomy in their franchise business.

HAPPY ENDING: To make a long story short, at some point (following several disappointments) I fortunately found much more than just a successful way to launch my own profitable business. Before investing in franchise there are a couple of things you need to know and I’m going to explain to you why there are better genuine options available nowadays -especially online- with less risk, less limitations, higher profits, more passion and more fulfilment!

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What Exactly Is A Franchise And How Does It Operate?

A franchise is a business model in which a franchisor licenses its trademark, products, services, and operating system to a franchisee (you), who runs the business under the brand name and guidance of the franchisor. In exchange for the right to use the franchisor's intellectual property and ongoing support, you pay an upfront franchise fee and ongoing royalties to the franchisor.

After signing a franchise agreement with a franchisor, you gain access to the franchisor's trademark, products, services, and operating system. By definition, you have to conform to the franchisor's established business model and processes, which include product pricing, marketing, and customer service. Depending on the company, the franchisor usually provides ongoing training, support, and guidance to the franchisee to ensure that the business runs smoothly.

Pros: What People Like About Franchises

1. Established brand

With a franchise, the franchisee benefits from an established brand with a loyal customer base. This of course can shorten the time and effort required to establish brand recognition from the ground up.

2. Proven business model

Franchises come with a proven business model that has already been tested. This means that what has worked for some of the people who own the same kind of franchise could possibly work for you as well.

3. Continuous supervision

Franchisees receive assistance and training from franchisors to ensure that they understand their business model and how the stores should operate.

Most Popular Franchise Opportunities in 2023

Let's examine some of the most well-known franchise options and compare them. Inside the red box you will see the initial investment required to start each of them:

Cons: What People Hate About Franchises

4. High startup costs

Franchise fees can be expensive, which can actually limit their accessibility. In addition to the initial investment, some franchisors may also charge rent if you buy an existing storefront, as well as management fees, recruitment costs, service fees and so on.

5. Ongoing Royalties

Franchisees are required to pay ongoing royalties to the franchisor, which inevitably eat into profits, reduce your financial return and hold you back from scaling your baby.

6. Ownership is not permanent

If you invest in a franchise, you'll be required to sign a contract outlining the terms of your ownership. When your contract expires, the franchisor has the faculty to decide not to renew it.

7. Lack of control and creativity

As franchisees must adhere to the franchisor's well-established business model and procedures, this can restrict your potential to innovate, suffocate your desire of designing a unique logo and significantly limit your ability to lead your team the way you would love to. You are the manager, not the boss. In some cases, franchisees can even run into legal issues, such as contract disputes, trademark infringement or regulatory compliance.

Why Starting Your Online Business is the Best Option

Because it is easy, fast, risk-free, profitable and gives you the time and geographical freedom you need to live life the way you really want to.

If money is not an issue for you and you are the kind of person that enjoys obeying orders... then you can try the experience of owning a franchise. The problem is that even if you manage to make it work, it will not give you what you were looking for. You will just buy yourself another job, that will require you to spend endless hours running it, stuck in the same place and for which you will also need to pay the bills and the staff every single month.

The franchise business model is part of the traditional (old) way of working according to which your earnings are strictly related to the hours your store is open and the number of clients that will walk into the store.

On the other hand, the modern (new) way of working online allows anyone to earn on autopilot by setting up simple automated marketing systems. These tools require way smaller initial investments compared to a franchise and allow you to constantly grow your income building new projects and your own brand(s) around anything you are passionate about by only using your laptop.

Running your online business means you will joyously choose your logos, your designs, you will work from anywhere, decide your working hours and explore your unlimited earning potential!

Until a few years ago, starting an online business used to be more complicated than buying a franchise. It would typically require a certain level of technical skills and it would be mostly limited to an e-shop. In today’s world, literally anyone (no matter what age or background) can leverage extremely user-friendly digital tools and services to launch an online project in a matter of hours!

You don’t even need a product or service to sell. If you have one, you can of course sell it to a worldwide market. If you don’t, you can promote any already existing product or service and earn commissions on the automated sales you will generate simply by putting valuable content out on the internet. What is even more important than money is that you can start your online projects around your own interests, your hobbies or anything you are truly passionate about. How fulfilling is that?

Best Online Business Models

You will first need to choose the online business model that is the best fit for you. I personally recommend the 3 following options, to be considered according to your authentic desires, that have already proven to be the most efficient on the global marketplace.

Affiliate Marketing: You earn automated commissions promoting other companies’ products or services.
E-Commerce: You market your own physical products online (you can also source products and brand them under your private label), preferably leveraging Amazon’s FBA service.
Coaching courses: If you have any particular skill or knowledge that can be useful to others, you can easily start an online coaching business.

Whatever online business model you choose, the way it works is more or less the same. You first learn how to produce content that is useful to others (it can be an article, a video, a social media post etc.) that people can find 24/7 on the internet, by the means of Google Search, YouTube, Facebook, Instagram or any other platform. Once you then put this content in front of a worldwide audience that is already looking for what you are promoting, you get automated sales even while you sleep! It goes without saying that your earning potential is uncapped.

Become Someone Of Authority

It all comes down to understanding the concept of “Authority Marketing”, which is the sole mechanism that nowadays separates those who make a real income online (also know as the "modern wealthy" people) from those who don’t.

Whenever someone tells you you are going to earn $10.000 in the first week, just run the other way. Starting and growing your online business takes some time and effort until you get your mindset and tools set up before you go running off into the sunset with your laptop and your dreams.

But believe me, it's much more than worth it. It took me less than 2 months to build my first online project and that moment completely changed my perspective on what is possible in life! I now tend to jump into new exciting income streams that align with my own values and mission and I also help other people solve their own problems, which frankly is the most fulfilling part.

Running your online business using “Authority Marketing” allows you to be as modest or as ambitious as you want. You can decide you just want to earn a healthy automated income and have more free time or you maybe want to build your own empire in a specific industry. It's up to you!

More and more people today are leveraging basic technology, with little previous experience or technical knowledge, to live the so-called laptop lifestyle and give themselves and their families financial, time and geographical independence!

How To Easily Start Your Journey Today

You can fill in your contact details below and I will instantly send you the same FREE VIDEO TRAINING that helped me get started online featuring Stuart, one of my early mentors and co-founder of an amazing community called LaunchYou, in which he explains the game-changing idea of "Authority Marketing" that will give you the right foundations to embark on your authentic entrepreneurial journey. I hope more and more people will gradually be able to live their lives at their own terms. Perhaps nothing in your life will ever be the same again!