Starting your own business can be a difficult and long drawn out process, full of pitfalls and traps for the novice entrepreneur and unfortunately a significant number of businesses never reach the break-even stage.

To buy a franchise business allows you to shorten the learning curve considerably. Not only will you instantly be trading under an established name – which has most likely taken years, if not decades, of nurturing and promoting to establish – but you will also have access to the business know-how and experience which has made the franchise a success. The person who founded the business into which you may buy a franchise would have possessed a whole lot of sheer bloody-mindedness and extraordinary drive to not only have created the business concept in the first place, but to steer it to where is now – a (hopefully) successful franchise. If you do buy a franchise opportunity, you will be buying into, and be able to benefit from, the same culture of success.

So what are the reasons to NOT buy a franchise? The two main reasons are cost and restrictions.

Starting a franchise will often cost more upfront than starting an original business concept. This is because you will have to pay a franchise fee which covers the franchise development costs, franchise marketing expenses and the franchise training program. There will the be additional costs of a franchise royalty and usually you will need to contribute to the franchise advertising fund. Additionally the franchisor may insist on a minimum amount of working capital to be available.

Whilst these expenses may seem high, they will normally be realistic and help ensure that your new business is successful. On the other hand starting your own business may be possible on a shoe-string budget, but it will be a lot tougher to get to the break-even point.

Some of the restrictions that the franchise agreement imposes on their franchisees are there for a good reason: The franchise business model has been finely honed, possibly over decades, and one of the constant battles a franchisor has is resisting the implementation of every new bright idea that franchisors want to try. Uniformity is important in the franchise world. Every customer who is familiar with the franchise chain expects to see the same products, the same branding and the same “look and feel”. It is one of the aspects of franchising that appeals to customers.

Another restriction that may apply is one of territory. Although this is becoming less prevalent these days, many franchises still make it a requirement to define a territory in which the franchise may operate. Such a practise may have the effect of reducing competition in a particular territory and so give a new franchise a better chance of success. On the other hand owning a franchise territory may place heavy burdens on the franchisee who may be expected to develop the territory and reach certain milestones within a given period.

So there are many factors to consider when making the decision whether to buy a franchise or start a brand new business concept, but for many, the discipline and guidance from the franchisor will make buying a franchise a wiser choice.

There are many avenues one can take to get involved with travel franchises, including travel agency franchise opportunities, cruise franchise opportunities, and hotel and rental car franchise opportunities. Even touring companies and map publishers offer franchise opportunities to entrepreneurs eager to become part of the exciting travel industry.

How to Choose What’s Right for You

The segment you choose may depend on the type of work that most interests you. Perhaps you have always been intrigued by the lodging industry, secretly dreaming of owning a hotel.

If so, you may be interested in knowing that 70 % of hotels in the United States are part of franchises. Or, you may be interested in providing specialized services, such as planning the entire vacation. Many travel agents are so detailed that they offer health-related advice for those taking trips to exotic locations.

Maybe you are looking for a lucrative opportunity for home-based income. If so, you’ll be glad to know that many travel franchise opportunities allow you to successfully work from home with an Internet franchise.

Moreover, not only are many travel franchises great prospects for home-based income and discounted vacations, they are a portal into the growing travel industry. In fact, the cruise industry alone is growing at an average of 8.4 % annually and has been America’s fastest growing vacation for more than two decades.

With the travel industry strengthening so rapidly, you may be wondering if a franchise business is more beneficial than starting your own business.

Also, if you are interested in mixing work with pleasure, consider an international franchise. This franchise opportunity works well for entrepreneurs who have family members and friends in other countries or even for those who simply love to travel.

Many franchise businesses allow the franchisee to manage most of the work from afar on a regular basis and travel to the location periodically. A hotel franchise in Spain, for example, would allow be perfect for a franchisee who has relatives there. The franchisee would have the opportunity to visit family members, work on-location, and even have a place to lodge, if needed.

Building a successful business takes a great deal of research, time and in many cases, a fair amount of capital. One of the most important business decisions is where to locate a store. Since many travel franchisees can operate from their home offices and online, you may not have to plan for a location. However, if you must choose a location, consider the surrounding businesses.

Customers find comfort in working with a brand name they trust, especially if they are traveling to foreign countries. Travel franchisees reap the benefits of working with a trusted brand.

Many franchisors offer secure client lists, advertising and website development programs, training programs and group inventory in addition to discounted travel. Additionally, you will also benefit from working for a company that more than likely will provide the tools you need to operate a travel franchise.

For instance, in the hotel industry, franchises offer a centralized reservation system for guests. Through this system, if a guest arrives at a franchised hotel without a reservation only to find no vacancy, the hotel clerk can log in to the centralized reservation system and find availability at a nearby location. This is just one example of how a franchise business offers advantages to its franchisees. After all, a franchisor is looking to expand through this opportunity.

Current studies show that 80 % of all franchisees successfully launch their business franchises. When compared to a success rate of only 40 to 60 % for new businesses, a franchise is an obvious choice.

Of course, even building a franchise takes financial investments and valuable time. Before being whisked away by a travel franchise, you should do preliminary research. Take the time to find the franchise business opportunity that fits your needs and helps your professional and financial goals.