Franchises in the Philippines are a dime a dozen. The trick, however, is not in choosing a company to take out a franchise with, but the reasons behind the choice. So before you make that choice, you may want to consider the pros and cons of taking out a franchise.

Pros:
Your business is based on a proven idea, meaning formulas for success are already in place and all you need to do is follow the paths or innovate. You are also blessed with the opportunity of checking out how successful other franchises are before committing yourself.

You can use a recognized brand name and trade marks. Take, for example, the Jollibee experience�??that big red and yellow bee is always recognizable, attracting even patrons of competitors.

The franchisor gives you support, including training, help in setting up the business, and constant advice in handling the franchise.

Some franchisors give you exclusive rights to a territory, meaning they won’t sell other franchises in the area where you put up your business.

Financing the franchise may be easier since most banks are more likely to provide loans to those who want to take out a franchise with a good reputation.

Risk is reduced and shared by the franchisor, giving that initial investment more security.

You may not need to invest in luring customers since most franchisors already have an existing customer base.

Relationships with suppliers have already been established so you don’t need to look for suppliers for your products.

Cons:
Costs may be higher than you expect, especially if you don’t factor in royalties and other charges before making your decision.

The agreement with the franchisor usually includes restrictions on how to run the business, meaning those innovations you’re thinking about amount to nothing if you can’t get the franchisor’s approval.

The franchisor might go out of business or change the way they do things. You may end up doing well in the business, but the health of the franchisor depends on a different set of factors.

Other franchisees could give the brand a bad reputation and there’s very little you and the franchisor could do.

When you decide to sell your franchise, you may have a hard time since the franchisor’s approval is needed.

Reduced risk means you might not generate large profits.