Buying a franchise: Purchasing clout

The big name not only brings an immediate customer base, it gets the business owner discounts on equipment, inventory and advertising. The franchiser's reputation conveys a clout that independent owners work years to achieve, whether they're flipping burgers or refacing kitchen cabinets.

Before deciding in favor of franchising, entrepreneurs need to answer two key questions: What do you want to do, and what can you afford to do? While a franchise does reduce some of the risk of starting a company, you are still buying a business.