1851

While franchising can be <a href="https://1851franchise.com/what-are-the-best-franchises-to-invest-in-right-now-2716400">a great way to start a business</a>, entrepreneurs without the necessary funds, passion and commitment should not invest in a franchise.&nbsp;For one, prospective owners need to evaluate their financial standing. The costs of starting a franchise can range anywhere from <a href="https://1851franchise.com/how-profitable-is-owning-a-mcdonalds-franchise-2715302">over $1,000,000</a> to <a href="https://1851franchise.com/best-low-cost-franchises-under-100k-to-buy-in-2021-2715126">under $5,000</a>, but even if a prospect has the necessary liquid assets to get a franchise off the ground, it doesn’t mean they are in the clear financially. Entrepreneurs will also need to think about <a href="https://1851franchise.com/how-to-structure-franchise-royalty-fees-2715569">royalty fees</a>, employee salaries, ongoing costs and more. Before committing to a franchise, prospects need to do their <a href="https://1851franchise.com/how-do-you-do-due-diligence-on-a-franchise-2716448">due diligence</a> and ensure they are certain of their financial security. If they aren’t 100% confident, it may not be the right path for them.&nbsp;Another sign that franchising may not be the right path has to do with the level of independence that entrepreneurs expect to maintain when starting their business. Although each franchise concept will grant owners a different amount of <a href="https://1851franchise.com/whats-the-work-life-balance-equation-really-mean-3739">freedom and flexibility</a>, prospective owners need to be willing and eager to follow an existing system.&nbsp;Franchising comes with many <a href="https://1851franchise.com/what-are-the-benefits-of-owning-a-franchise-2716498">perks</a>, including support, proven systems and established branding, but those benefits also mean franchisees are confined to a certain blueprint. For example, those interested in purchasing a <a href="https://1851franchise.com/why-is-mcdonalds-considered-a-real-estate-company-2715077">McDonald’s franchise</a> can’t expect to sell pizza on the side. If an entrepreneur has a burning desire to revolutionize the industry or start a brand new concept, franchising with an existing brand isn’t the way to go.&nbsp;Lastly, if a prospective franchisee doesn’t feel passionate about a certain franchise concept, they should not sign on the dotted line. Especially in the beginning, incoming franchisees <a href="https://1851franchise.com/what-to-expect-in-your-first-year-of-franchising-10546">need to be prepared</a> to focus all of their effort on their business, which is exceedingly difficult without a certain level of passion acting as the driving force. Some franchise concepts will require less of a hands-on, day-to-day presence, but in general, a lack of passion is a tell-tale sign that a franchisee is not the right fit for a brand.&nbsp;Related Articles:<ul><li><a href="https://1851franchise.com/what-are-2021s-top-small-businesses-2716718#frannews">What Are 2021's Top Small Businesses?</a></li><li><a href="https://1851franchise.com/how-should-you-choose-a-franchise-2716694#frannews">How Should You Choose a Franchise?</a></li><li><a href="https://1851franchise.com/what-types-of-business-are-open-to-franchising-2716567#frannews">What Types of Business Are Open To Franchising?</a></li></ul>

Why Should You NOT Invest in a Franchise?

1851 Franchise

If an entrepreneur is under-capitalized, demands unfettered independence or is not passionate about the concept, they should not invest in a franchise.

why-should-you-not-invest-in-a-franchise

TruBlue Home Service Ally

TruBlue Home Service Ally Celebrates Major Milestone With Opening of Its 100th Franchise Location

trublue-home-service-ally-celebrates-major-milestone-with-opening-of-its-100th-franchise-location

Children's Lighthouse

Children’s Lighthouse Named Among the Top Franchises in Entrepreneur Franchise 500® Ranking

Children’s Lighthouse Named Among the Top Franchises in Entrepreneur Magazine’s Franchise 500® Ranking

childrens-lighthouse-named-among-the-top-franchises-in-entrepreneur-magazines-franchise-500-ranking

Layne's Chicken Fingers

Four Layne's team members stand in front of a wall decorated with artwork from the community

The Easiest $10,000 Made in a Day: How Layne’s Built Operations for Volume

the-easiest-10000-made-in-a-day-how-laynes-built-operations-for-volume

Pet Wants

Why Pet Wants Is Perfect for First-Time Franchise Owners

why-pet-wants-is-perfect-for-first-time-franchise-owners

Griswold

7 Winter Safety Tips for Seniors: Staying Safe During National Winter Safety Month

7-winter-safety-tips-for-seniors-staying-safe-during-national-winter-safety-month

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

Login

facebook

instagram

twitter

linkedin

youtube

Yum Brands - KFC - Pizza Hut - Terminates Franchise Agreements in Turkey - 1851 Franchise

Yum! Brands Terminates Franchise Agreements in Turkey Due to Non-Compliance

yum-brands-terminates-franchise-agreements-in-turkey-due-to-non-compliance

Recent Franchise News - Why Franchisors Churn Through Marketing Suppliers - 1851 Franchise

Forbes: Four Reasons Why Franchisors Churn Through Marketing Suppliers

forbes-four-reasons-why-franchisors-churn-through-marketing-suppliers

QSR Magazine: Big Chicken Targets Global Expansion

qsr-magazine-big-chicken-aims-for-global-growth

Starbucks Strike Brews Opportunity for the Next Coffee Franchisee

starbucks-strike-brews-opportunity-for-coffee-franchise-hopefuls

I Heart Mac and Cheese - Franchisees Sue I Heart Mac and Cheese - Franchise News - 1851 Franchise

Restaurant Business Online: Franchisees Sue I Heart Mac and Cheese

restaurant-business-online-franchisees-sue-i-heart-mac-and-cheese

Two Attorneys, Restaurant Professionals To Serve Germantown Community With New Paris Baguette Café

two-attorneys-restaurant-professionals-to-serve-germantown-community-with-new-paris-baguette-cafe

Top 10 Franchises for New Year’s Resolutions

Top 10 Franchise Opportunities for New Year’s Resolutions

top-10-franchises-for-new-years-resolutions

Leveraging Technology in Franchise Management

How to Leverage Technology in Franchise Management

leveraging-technology-in-franchise-management

The Best Franchises To Own With Low Initial Investments

best-franchises-with-low-initial-investments

Newk's Eatery - Magee, MS - Skip Russell Franchisee Profile - CI

Former Popeyes Franchisee Builds on Decades of Success with Newk's Expansion Plans

former-popeyes-franchisee-builds-on-decades-of-success-with-newks-expansion-plans

Why Should You NOT Invest in a Franchise?

MORE STORIES LIKE THIS