When deciding which franchise is right for you, you may wish to take into account the advantages and disadvantages of large franchise versus small franchise systems. What can you expect from each type?
Large Franchise Advantages
In large franchise systems, the main advantage is that you are more likely to receive a proven system as well as a valuable and recognizable brand. You are able to determine that these two factors exist by research and talking with other people. In addition, conversing with existing franchisees within the organization can demonstrate how well the system is working especially if the other franchisees have been in operation for a decent length of time.Another advantage of investing in a large franchise is the lower level of risk you will experience. If the franchise has grown over time, it is likely that most of the kinks have been worked out of the system.
When working in a large franchise operation, you are more apt to receive solid support. You will probably work with more experienced personnel within the organization. This in turn fosters the potential for lower operating costs due to the decrease in possible errors you might make within your franchise. Therefore your potential for better profits is increased.
Large Franchise Disadvantages
A possible disadvantage of a larger system is that there are usually stricter rules and regulations regarding operations. You are much less likely to find any flexibility within the organization.Another disadvantage is that larger systems collect many more inquiries than they have units. Franchisees may need to have higher qualifications and be able o communicate them more assertively.
Also, larger operations tend to increase its units within the organization since those franchisees have already proven themselves. Therefore it may be harder to obtain a unit.
Small Franchise Advantages
Smaller franchises are inclined to have simpler more direct systems. Franchisees receive the support that they need with focus on the most important issues, usually with a more personal touch. You will mainly deal directly with the senior people within the organization.Also, smaller franchises can offer more flexibility. These franchisors tend to allow some freedom for experimentation and are more open to suggestions for improvements.
Small Franchise Disadvantages
One disadvantage of associating with a smaller franchise is that they usually have smaller budgets and more limited resources than larger organizations. This would hinder access to outside training programs and third party support that the large systems can offer. Technology may not be as up to date either.A second disadvantage of smaller franchise systems is that their operating system may not be as well proven as that of a larger organization. Therefore the risk is likely to be increased.
Overall, you must decide what type of environment you are most comfortable working in. Do your research ahead of time, including talking with existing franchisees to determine what size organization would be the best fit for you.
