Here is the delima. I'll try to make it short. I started talks with a company about buying a franchise. The franchise is cheap enough that the fee is not a problem. I have not signed anything, have only received the agreement to look through.
The franchise is brand new, as in no franchises as of now. Only launching it now. So, as I start to look through this and start tallying the costs in my head, I question if I can just do this myself instead. It is a service, so just as an example, let's take carpet cleaning.
This company has no name brand power right now. The question is if it will in the future. Then, the legal set up is up to me, so no help there. the materials are just told where to get them from, which I have already found suppliers for in the example, the chemicals and the vacuum.
So, is there any benefit with going with this franchise start up or should I just approach this myself. The way I see it, after the incremintal build up, I'll be paying close to $6000 a year in fees and be somewhat limited in territory and decision making. Part of that goes to a national marketing fee, but I am still required to do local marketing as well. To put it in perspective, that $6000 is close to 20% of the profits for the initial market they own. Basically to the point of making it a huge difference in income to me.
I'd just like to see some thoughts from others and see if anyone else has been in this situation. Go with an unproven start up franchise and pay more or go out on your own and start your own company. It sounds easy, but at the same time, you'd hate to miss out on the next McDonalds.