Brand name benefits.
In some cases, the financial picture is far more solid with a franchise than that of a new, independent business. The SBA reports that 30 percent of independent companies fail their first year compared to only five percent of franchises.

The reason for franchise success? It’s all in the name. A new business has to start from scratch to carve out a name in their industry, while franchises often already have a well-established reputation. According to the U.S. Department of Congress, Americans will choose brand names two-to-one over generic names or names of which they have never heard. Whatever the franchise, it’s likely that the name recognition is already solid, sparing you from the hassle and expense of marketing and branding a new business.

Financing a franchise.
If you are interested in becoming a franchisee, you should be prepared to invest anywhere from $30,000 for a lesser-known franchise to $500,000 for a well-known one. McFillin reports that she spent over $70,000 investing in her exercise studio.

“I set a budget for myself from the start,” says McFillin. “I haven’t experienced any unexpected costs yet. If you plan ahead, you can keep your business from unexpectedly going under.”

Always remember to read the company contract carefully. Unexpected additional expenses may be included in the fine print of a franchise’s contract. And many franchise contracts include a “no money back” clause, which means that if your franchise flops, you will lose any money you invested in the company—including the initial fees the company charged you to become a franchisee.

Time and dedication.
Owning a franchise requires a lot of dedication and time. After over a year of being in business, McFillin still works as many as 60 hours each week.