If you are looking to start a business in New York, you could choose to create a new entity. However, you could also choose to buy a franchise, which means that you would operate using the brand, logo and other intellectual property of an existing brand. Let’s take a look at what you should consider before deciding to become a franchisee.
The potential benefits of operating as a franchisee
The most important potential benefit of owning a franchise is that you don’t have to build the company from the beginning. This means that you don’t have to spend time or money obtaining market share or educating consumers about your product or service. Furthermore, the parent company will likely help you pick an address where you have the best chance of maximizing traffic to your store.
The potential drawbacks to operating a franchise
A significant drawback to being a franchise owner is that you have to follow the rules set by the parent company. For instance, you may have to adhere to rules about uniforms or employee discipline that you might not agree with. Of course, exceptions may be made when corporate rules run afoul of business law requirements in your area. Generally speaking, you must pay the prevailing minimum wage in your area regardless of what policies the parent company has in place.
Owning a company may be an effective way to exert a greater level of control over your career. However, it’s important to understand that doing so may come with risks regardless of whether you choose to start a new company or buy a franchise.