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The Risks and Payoffs of Owning a Franchise

All reputable business ventures come with risks and benefits, and buying a franchise is no different. The more you understand about the potential drawbacks of franchise ownership, the easier it will be for you to overcome challenges and experience maximum success in the long run. 

Common Risks Associated with Franchise Ownership

There are many franchise opportunities out there, but they all come with some degree of risk. Just keep in mind that no successful businessperson ever achieved greatness without facing and overcoming risk. Here are a few of the common risks associated with franchise ownership:

  • Capital requirements
  • Fads
  • Seasonality

You will need to have a good source of capital to open a franchise, and you should also expect the franchisor to have sufficient capital to support growth. You will risk losing your capital investment if you or the franchisor does not have the financial resources necessary to sustain and grow the business. Before committing to a franchise, it is important not only to secure your own capital but also to investigate the franchisor’s financial situation.

There are plenty of franchise opportunities that pop up as a result of current fads. Any business based on a fad is not likely to stick around for the long term. Before making a franchise investment, make sure you are putting your money into an established market that has been around for a while and is not based on a trend. 

Finally, if you put your money into a seasonal business, you run the risk of losing money during the slow season. For greater financial stability, choose to open a franchise that retains steady business year-round. 

Benefits of Owning a Franchise

Now that you are aware of some of the risks associated with franchise ownership, it is time to consider the many benefits such a venture can offer you. Here are some of the most notable: 

  • Support and training
  • Profits
  • Lower failure rate

When you open a new business, you do not have the luxury of receiving training and financial support from a parent company. A franchise, on the other hand, gives you continual support so you have the highest likelihood of success. 

Buying a franchise can yield impressive profits in the long run. Just do not expect to make a heap of profit in the beginning. It takes time to start getting a good return on your investment. 

Statistics show that franchisees have a lower failure rate than people who start new businesses on their own. When you purchase a franchise, you are also purchasing a reputation that the franchisor has worked hard to develop. 

Start Your Franchise Adventure

At Best in Class Education Center, we take pride in helping our franchisees experience success. To learn more about opening an education franchise, give us a call at 425-880-2688 or download our brochure


Meet Our Franchisees

Best in Class Education Center has developed a flexible system that allows you to create your own work schedule and caters to your personal needs in establishing a new business. Veronica Reyna, a multi-unit franchisee from Cypress, Texas, has some great advice on what it’s like to get started with our program and some tips for those of you that are thinking of starting a franchise with us.


-Veronica Reyna

Best in Class Education Center believes in providing you with all the tools you’ll need to succeed. In this video, Ira Giri, a multi-unit franchisee out of Katy, Texas, shares her Franchisee Training experience with you and how it prepared her to be a successful franchise owner.


-Ira Giri

Best in Class franchisees come from many different backgrounds and nationalities, but what they all have in common is a deep passion for helping their community and an immense drive to be successful entrepreneurs. In this video, four franchisees from different parts of the country will share with you why they chose Best in Class Education Center to be their ultimate franchising opportunity.


-A group of franchisees

Carole Said, a franchisee out of Houston, Texas, has a few words to share with you about her onboarding experience and why she chose Best in Class Education Center.


-Carole Said