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As a franchisee, am I just an employee of the franchisor?
Definitely not, and if you think acquiring a franchise is just like buying a job you need to think again. You will be taking on the responsibility for running, including funding, your own outlet and you may well have to secure the venture by offering your house as security for any borrowing. It is also far less easy to resign from a franchise than it is from a job and you may well be responsible for employing your own staff, which brings further challenges.You will, of course, be doing things the way the franchisor wants them done, in that you will be following the franchisor’s system pretty much the way an employee would, but you will be responsible for operating that system properly and ensuring your staff do too. Franchisees typically work much harder and for much longer than most employees, but they have the incentive of being a business owner who, if everything goes according to plan, can sell their outlet for a reasonable capital gain.You will also be less closely managed than a typical employee would be. While you will have to report whatever critical data is required by the franchisor, and you will get help and training if you are struggling, it is very much down to you how successful your outlet becomes.
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