Subtitles section Play video Print subtitles what are the advantages and disadvantages of a franchise Now, when it comes to business, there are many ways that you could approach business for some. Maybe you want to start a business from scratch for some. Maybe you want to buy an existing business. The actually has some histories, has a track record right through an acquisition. Or maybe you're looking into buying a franchise. And if you are thinking about buying a franchise, what are the advantages and disadvantages of her friend of mine? Brian Scudamore, the CEO of 100 Got Junk me. He's the franchise king. It built a super successful multiple. Now franchise is now under his brand and running a $400 million franchise empire. And if you have not listened, click here. Make sure you listen to the interview that I did with Brian for his perspective. So he is the man to talk to when it comes to franchise. I'll just share with you my perspective off Holly View franchise When it comes to franchise understanding that you're buying into an assisting system, this is why franchises valuable 50% of small businesses fail in the 1st 2 years and 95% of small businesses fail in his 1st 5 years. So when you're starting a business meeting that chases off nine No. 10 that business will make it past a five year mark. And when I say make making, it doesn't mean you're you're profitable doesn't mean you're making money. It just means that you are surviving. The casualty rate is high when it comes to starting a business when you're buying an existing franchise. If the franchise, sir the company, the operating company has good history knows what they're doing dramatically reduces your rate off failure, right? It means they hate you. Could actually start something you're buying into business, right? So same McDonald. Why doesn't McDonald cost over $1,000,000 to buy as a franchise? Because McDonald it is a machine. There's a money machine is a proven money machine that sells hamburgers right. You don't have the best product in the world, not the most tasty burgers in the world, but they have the best system in the world when it comes to selling fast food. This is why the franchise is expensive because you're buying two existing money machine, so the system's so as an entrepreneur. If you want to get into a business, you don't want to take on a lot of risk, and you have some capital you're willing to invest. You are the type of entrepreneur that likes to operate with Dean certain boundaries, right that you want to follow system. You want to buy one location with second and third location like this is how you want Expand Franchise is a much safer way to go versus that opening, like, say, a something from scratch opening a restaurant from scratch. The risk is very, very high, and the chance of you not making is very high. But you still have to do your research because there's so many different franchises out there. A lot of franchisers. You could see that Trey shows they would try to sell you the franchise, but you need your own research, knowing the population, knowing your city, knowing the neighborhood, knowing that needs in the marketplace what franchise it's popular. Because just because it works for one city, it doesn't mean you work for an order city. Now, for some entrepreneurs, if you are Maura, I would say creative that you don't like to follow a system. You want to create a system, you just want to do your own thing. Then chances are franchise may not be the way to go for you because you would drive you crazy if you want to set your own price. You wanna do your marketing, assuming you have the knowledge, right? So if you want to be a business owner, I believe no problem. You wanna be operator. No problem in franchise is it's a good way to go. It's a very good way to go. In fact, you want the only thing you want to create something from scratch and you have the abilities. Then franchise may not be the way to go. So goes back to knowing your strength, knowing your witness, knowing what you're good at. Annoying What is your goal, right? May I have a friend of mine who is a master French? I see. For the entire Canada, I mean, he makes a multimillionaire. Makes a lot of money, right? Just running the business, helping the French. I see if he's happy, he's great. But talking many years of hot work just because you buy franchise it doesn't mean you don't need to put in the work and doesn't mean it's like an overnight success. But your chances of failure a lot lower. Does that make sense so common below? What do you want to do? You want to buy a franchise, you know? Wanna buy a franchise? What do you think? Other benefits off franchise? Or what if some of disadvantages our franchise? Go ahead and come in below two. Next time I'll see you, my belly.