• Whether the franchise you're considering is a restaurant or a service company, understand some of the benefits and risks.fast food image by sanyal from Fotolia.com
  
  Becoming a small business owner is a big decision that should be made with care, considering all the options. If you have been considering franchises as a possible business investment, you're not alone. According to the International Franchise Association, over a thousand companies offer franchising opportunities today, in more than seventy-five different industries. Before you make a decision, learn about some of the benefits and drawbacks of this popular business model so you can make an informed choice about your future.
  
  

Established Company

• An established name and presence are the most obvious benefits of owning a franchise. You'll have to concern yourself less with marketing and advertising to "get your name out." On the other hard, you will have less freedom for creativity in this area and you'll probably be responsible for paying marketing fees for the advertising materials provided by the franchisor.
  
  

Customers and Suppliers

• With a franchise, you'll often start off with a strong customer and suppliers base, which reduces some of the initial stress of opening a business. A possible drawback to this is that you may not have the freedom to seek out more affordable suppliers; your franchise contract might require you to only deal with a list of approved suppliers.
  
  

Expense

• One of the drawbacks of becoming a franchise is the large start-up expense. Depending on the franchise, this can be much more than what it would cost to start your own business. The expense is in large part due to the fact you are paying not only for a business but for all the work that has gone into creating the trademark and brand. Franchise owners should also expect to make regular royalty payments.
  
  

Support

• Owning a franchise may offer the opportunity for business support systems and programs that are not available to the average small-business owner. The franchise may offer representatives to assist with questions and decision-making, connect business owners through meetings, conferences and training sessions, or provide special software or other services that streamline administrative tasks. However, not all franchisors offer these services, so research is essential.