Running a Franchise Business with Your Family: Pros & Cons

What is your opinion on starting a family franchise business? I agree it’s a difficult question. Here are the pros and cons of being in a family franchise business. 

Pros of Family Franchise Business

01. Teaches Responsibility 

Being in a family business right from an early age allows you to take up business responsibilities, whereas it is impossible otherwise unless you are a teenager. 

02. Trustworthy Working Environment

With the family franchise business, there is no need for you to worry about the trust factor.

You are already aware of each other and you can directly jump into the business. 

03. Improved Work-life Balance

In a family business, you need not miss out on any birthdays, anniversaries, and celebrations. Business hours can be set mostly to your preferences. 

04. Better Entrepreneurship Skills

The franchise business with the family becomes a legacy and entrepreneurship is naturally inculcated. You will be more risk tolerant. 

05. Easy to Make Decisions

You will find very little office politics in decision making, if you happen to be in a family franchise business, helping in taking the right decision quickly. 

Cons of Family Franchise business

01. Financial Transparency

Even if you are in the family business, it is a mistake to take others for granted. 

It is important to talk to each other about expenditure, profits, and debt that you and other members share. 

02. Failing to Understand the Real Boss

Right from the start, it is a necessity to understand who has decision-making powers in your franchise. 

When decision-making is required, there shouldn’t be any conflicts around it.

03. More Distractions

In a family, there can be a lot of preoccupations in your personal space that may distract you away from the franchise business.

 These distractions may take away your time with the customers, leading to costly lags in business growth.

04. Higher Chances of Breaking the Rules

One of the cons of being in a family business is that there is a higher chance of breaking the rules in situations where a formal employee will definitely stick to the rules.

05. Negative Feedback may Create Conflicts

It becomes challenging if you have to provide negative feedback on a family member, as it can create an unhealthy environment at home. This feedback can be taken personally, leading to negativity at home and in business.

For more insights into the pros and cons of running a family franchise business, Contact Us.