Your business is based on a proven idea. You can check how successful other franchises are before committing yourself. You can use a recognised brand name and trade marks. You benefit from any advertising or promotion by the owner of the franchise - the 'franchisor'. The franchisor gives you support - usually including training, help setting up the business, a manual telling you how to run the business and ongoing advice. You usually have exclusive rights in your territory. The franchisor won't sell any other franchises in the same territory. Financing the business may be easier. Banks are sometimes more likely to lend money to buy a franchise with a good reputation. You can benefit from communicating and sharing ideas with, and receiving support from, other franchisees in the network. Relationships with suppliers have already been established.
Disadvantages
Costs may be higher than you expect. As well as the initial costs of buying the franchise, you pay continuing management service fees and you may have to agree to buy products from the franchisor. The franchise agreement usually includes restrictions on how you can run the business. You might not be able to make changes to suit your local market. The franchisor might go out of business. Other franchisees could give the brand a bad reputation, so the recruitment process needs to be thorough You may find it difficult to sell your franchise - you can only sell it to someone approved by the franchisor. All profits (a percentage of sales) are usually shared with the franchisor.
The advantage I see with having a franchise is that you don't need to advertise about the product or service you provide. Your part is finding the right location and the maintenance of the establishment. Then of course paying the royalties will be a disadvantage if you don't have great sales.
Yes, you definitely have to abide by the franchise policies. That can be a disadvantage and it is one of the reasons you need to read everything carefully before you decide to buy into one. The franchise company does help you to some extent and it is an advantage that these companies are well known.
The big bonus in owning a franchise is the method of operations, which has a proven track record and profit margin. Franchises are successful because the results are the same no matter the location. Strict adherence to the SOP is of utmost importance to uphold the quality/service which the customers expect. Down side, you have a lot of overhead and not much liberty.
I agree that it's a great thing if the franchise is well known. That is the "goodwill" of the company. You don't have to prove yourself to get customers. I'm wondering though if you have to abide by the franchise policies?
If it is a good franchise you get lots of advertising support. The downside is that regardless if you make any profits you still have to pay them hefty royalties.
