Canada has a thriving franchise industry, and a Canadian franchise attorney Tony Wilson points out 3 advantages of franchise ownership;
- Training in the business model. "They're training you to use their
system; training is a huge component in franchising," Wilson says.
- Access to a trademark and brand advertising. "That's what franchisees should expect — to get the benefit of the brand."
- Joint purchasing power. "If you're in a buying group with 16 other
restaurants, you're going to get your food cheaper than if you're one
restaurant buying your product by yourself," Wilson explains.
Wilson recently wrote, "Buying a Franchise in Canada: Understanding And Negotiating Your Franchise Agreement." Some of the franchise laws in the book only apply to Canadian franchisors.
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Wilson also said that "You never own the business, really. You're just renting it from somebody else." Article
If you have been reading my articles for awhile, you know that I am not a card-carrying member of the International Franchise Association, and that I show both the positive and the negative sides of franchising.
I must say that I totally disagree with Mr. Wilson's statement. You are not "renting a business," when you buy a franchise. You are buying a system, and if you are a good fit for that particular franchise concept, you go in with enough working capital, and you follow the plan, (Which you found out was a good one, because you did superb research) then you have a reasonably good chance of small business ownership success.
Renting a business? Great statement to increase readership of that article, but not true, Tony…
What do you think? Are you "renting a business" when you purchase a franchise?