Is Having A Co-Franchise Owner A Good Idea?
We’ve got a lot of franchise business owners here at Rainbow who took the leap alone and started running their very own venture. But franchising doesn’t have to be a solo mission. Alongside our individual franchise owners, we also have co-franchisees – people who have decided to go into business together and run their territory side by side.
In this blog, we look at some of the pros and cons of entering into a franchise with a partner – be it a spouse, friend, or somebody else you know who shares similar business interests.
PRO: Spreading the workload
Running a franchise business is tough – make no bones about it. When you’re running a territory with your partner, though, you can split the workload so it never becomes overwhelming. You might even have complementary skills, meaning each of you can take on your favourite aspects of the job.
CON: It’s a big decision
You need to be 100% sure you can trust the person you’re going into business with, so you should never gamble on co-franchising with someone who you don’t know particularly well. Both of you will need to contribute to the territory in equal measure, so it’s crucial to be familiar with your prospective partner’s abilities before you sign on the dotted line.
PRO: Effective collaboration
Two heads are always better than one. Franchising involves frequently coming up with new ideas on how to run your venture so it remains profitable – just like any other business. When you have someone else to bounce thoughts off, you’ll stand a much better chance of success.
CON: Less control
You’ll need to make decisions together as part of a co-franchise agreement, which does mean you lose an element of control. That said, you’ll both have the best interests of the business at heart, meaning serious friction or disagreements are unlikely. Besides, Rainbow are always there to weigh in and provide support whenever you need us to.
PRO: Joint financing
Buying a franchise is an investment that requires a good amount of money to get started, but when you’ve got a business partner beside you, you’ll only need to put in half the amount. Together, you’ll raise the necessary capital at twice the speed, meaning you can get running your business as quickly as possible.
CON: Splitting the profits
Of course, as a co-franchisee, you’ll need to share your profits with your business partner – but for many this isn’t a real hardship. Individuals often choose to enter into these types of agreements with their spouse, which means they’d be sharing the income anyway. Also, the pros of working alongside someone you trust and respect can be worth sacrificing that little bit of extra cash.
Co-franchising with Rainbow
Looking to embark on franchise opportunities with a business partner? Rainbow is the right choice for you.
Head on over to our success stories section to read about Krutika and Dev, two thriving co-franchisees, and book a call with our team when you’re done. We’ll talk you through the whole process, telling you everything you need to know about buying a franchise as a duo.