Starting your own business can be a daunting task; however, nearly everyone dreams of doing just that. Statistically speaking, the odds are greatly against you. The vast majority of startups fail in the first year of operation. However, there is a way that can really improve your chances of running a successful business. This can be accomplished by becoming a franchisee.

Buying a franchise is an option, it is buying into an existing business model were you will run your own business in a defined geographical area, you will receive support in the early stages when your business is starting up and you will be expected to use the methods and systems defined by the franchise. This may sound like a great option in that it does provide a tried and tested business model and does give the new franchisee support through the difficult start up phase of the business. However the purpose of this article is to highlight the disadvantages of the franchise, below are some of them:-

- buying a franchise can be very expensive, in addition there are usually ongoing annual franchise fees and a slice of your takings will have to be paid as royalty fees.

- one of the advantages of a franchise can also be one of the great drawbacks, the franchise is a tried and tested business model with everyone expected to strictly adhere to the defined methods and systems, which may not suit everyone especially the more entrepreneurial franchisees.

- the franchise is usually based on a geographical area and each one can be quite different to another, so the types of business and the demographics of a particular area may not be quite so advantageous to one franchisee as another.

- the actual franchise agreement should be considered for things like the duration of the agreement, thought must be given to what happens when the agreement ends, will the annual franchise fee go up?, could you work within the confines of the franchise for that period of time?

This list is not exhaustive, this article is not intended to stop people going down the franchise route but simply to highlight the drawbacks of the franchise model so that people may make a more balanced and informed decision.

The world seems to be getting smaller as more and more companies scan the globe to put up franchise operations. The international franchise market has expanded to a large extent during the past few years. Countries throughout the world seem to be participating in the growth of industries that was previously specific to a particular country only.

Some of the major industries are food, electronics, and automobiles, which have shown a rapid growth through franchising worldwide. International franchising allows the companies to infiltrate countries by introducing the product in the country in franchises.

Starting an international franchise can be very difficult and require extensive research in that market that might take years to finish. The company must ensure that raw materials and other requisites can be found in the country itself as it is cost effective.

Certain legalities concerning the leasing of land or offices in a different country, receive the permission from the government to use trademarks, tax related issues, and employing the regional manager or an area manager to manage the initial proceedings are few of the initial hurdles to be crossed. A contract containing these aspects as well as other management criteria must be drawn up.

Since there definitely would be a difference in the currency, the fee amount, conversion rate, and such monetary related issues must be considered. Some countries might have restrictions on the amount that can be remitted into the country at a given time.

All the related government approvals must be considered at the initial stage itself. Some governments need the company to get special licenses for putting up a franchise in the country. Also, all the monetary related issues such as fee details, and repatriation etc need to be run through at the government office before being approved.

The company must be ready with the financing and background check in order to confirm the time that would take to start the franchise. Accurate preparation will ensure the franchise will be up and running in no time with any additional costs cropping up out of the blue.

There are various other aspects to consider before opening a franchise in a different country. It is suggested to go through the whole lot before signing an agreement for an international franchise.