Four Notable Challenges in Owning a Franchise Store Working Inside the Franchisor’s System: An established franchisor has a system of operations that requires strict adherence. While it provides liberty in many traditional senses against the difficulty of entrepreneurial independence, it is structured with certain conventions that must be adhered to. One example would be pricing. You’re not going to have a lot of haggling at a fast food place, but you may have some substantial haggling over certain department store goods. The wiggle-room for discounts can be very slim in a franchised option, because there’s a national — sometimes international — standard to uphold. Initialization Risk: When a new franchised store opens, it will face some of the same risks a newly opened private business faces — things like visibility and traffic will come into play, and certain metrics must be maintained for the store to continue. Franchisors have standards here, and they’ll be similar to those your own budget introduces. This risk is diminished from individual exploits, but it is definitely still a consideration. Marriage and Its Consequences: Getting involved with a franchisor is, in many ways, like being married. You’re in a partnership that allows for some freedom, but it’s a partnership that is legally binding and lasts for a long time. The solution here is to choose carefully, and fully commit once the choice has been made. Battling False Expectations: Getting a franchise store will very likely yield financially in the long run, but it takes time and effort. It’s a full-time job, and not something that will bring instantaneous riches. You’ve got to be prepared to be realistic and work hard, and in the end there’s a high likelihood of that work paying off. Franchising has revolutionized business practice and can be exceptionally lucrative, but it requires careful consideration and a strong work ethic. For the right investor, it’s one of the most sustainable business decisions available.