By Michelle Loredo
The ongoing COVID-19 pandemic has caused uncertainty in the business field that includes small businesses, corporations and franchises alike. In Harris County, there are currently more than 78,000 confirmed cases as of now.
If you’re looking into owning a franchise in the near future, don’t give in into pessimistic thoughts created by the current climate. Not all business sectors are being affected the same way and doing research doesn’t mean that you’re going to commit to buying a franchise. For example, cleaning businesses and coffee subscription companies are thriving in the new normal.
Here are the top eight pros and cons of buying a franchise and things to keep in mind during this ongoing pandemic.
The Pros:
The Cons:
Things to Keep in Mind:
When you’re looking into owning a franchise, it’s important that you research all the aspects of the process. This includes contacting the franchises directly and asking how they are dealing with the COVID-19 pandemic. For example, what is the business specifically doing as a reaction to the pandemic and how is business being affected?
Also, if you’re ready to jump on a franchise opportunity, you need to work with a franchise lawyer. You will need their legal representation when you’re in the process of investing in a franchise due to the heavy legal jargon that will be in the Franchise Disclosure Document.
Lastly, you need to have a solid business plan so that lending institutions will approve of grants so that you can make the initial franchise payment. The Small Business Administration has different loans that can apply to buy a franchise.
Where to Get Help:
The University of Houston Texas Gulf Coast SBDC Network is here to help you with your franchise questions. With our 14 locations, you can schedule a free one-on-one virtual business advising session with our business advisors. We also have on-demand webinars that can help you in this process.