Why Do Filipinos Franchise?

On the flip side, owning a franchise usually requires territory restrictions which could affect your bottom line, you normally have to pay royalties on the gross revenue and you have to have a considerable net worth to be considered for owning a franchise.Bottom line is that both sides have good things and bad things.Look at the most successful franchise in the world, McDonald's.You can set your own prices, you can market however you choose and you don't have to follow any strict guidelines or stay inside the box.That's because of its system.It is one of the most recognized brands in the world and you get the same experience everywhere even though their food is not even close to being the best.Another reason individuals buy franchises is because they don't have to go out and build supplier relationships, create marketing initiatives, create systems and infrastructures or reinvent the wheel.In all honesty, part of the decision really should be how risk averse someone is.As an entrepreneur, if you know the story of both sides, you can make a wise decision based on what you're comfortable with.I mean, that's the American dream in a nutshell.It usually requires a handful of them, but not always.So a great question to ask is 'Why buy franchises when you can start your own business with your own conditions under your own rules'.Owning your own business gives you the flexibility to grow as big as you want just like Apple, Microsoft, Facebook, etc.So many people turn to entrepreneurship and business ownership looking to live that 'American Dream' and the happiness that comes with it.That's usually because a lack of planning, lack of capital and a lack of systems.First, since you are the head honcho, you can literally do whatever you want (within the law of course) and you can build your business however you want.

Another reason people don't buy franchises is the scalability factor.

I would argue that most people want to work for themselves, set their own schedule and make as much money as they want, right?If they like high risk and high rewards, then a traditional business would be good for them.Well the truth is both have some advantages and some disadvantages.Owning your own business also comes with its own sets of challenges and rewards.Usually you can't make a significant income by just owning 1 franchise.That's a legitimate question and one that needs some discussion, so let's get started.If they like lower risk and small to medium reward, then a franchise could be a good way to go.Owning a franchise significantly reduces that number.Before you get all excited about being your own 'cowboy' in the wild west, understand that 95% of all businesses fail in the first 3 years.Trust me, I get it.So now the question really is, "what kind of business is right for me?Franchises have a system in place that is PROVEN to have results and they usually have strong brand names associated with them.People buy franchises mostly because of a few main factors.I think you get the idea.Should I consider buying a franchise or starting my own business from scratch.People can own their own business and 'let it all ride' based on their expertise or they can buy franchises and have a much better chance of success, just not a huge success with just 1 franchise.