Buying a franchise: Fitting in and branching out

Carefully consider the cost of getting out of a franchise before you buy in.

There are more than half a million franchise businesses in the United States, and according to Franchise Developers in Lincoln, Neb., more than three out of four franchise owners would recommend franchising to others. But the strengths of franchising can sometimes be seen as restrictions.

Quality control means customers know what to expect when they walk into a Subway or a Super Cuts. It also means the franchisee must fit into the system and follow orders to maintain consistency. That can be difficult for the entrepreneur with an independent spirit.

"Franchisers don't really want true entrepreneurs because they'll try to change things," explains Dixon. "They want people who fit into the system, someone who's sold on the product."

A typical franchise contract runs for 10 years and includes renewal and resale terms.

The franchisee/franchisor relationship can become strained at the end of the term, especially if the franchise is successful. It may be human nature for the successful franchisee to say, "Who needs them? I could have done this on my own." But you can't just take it with you, and you can't just hand your business over to a relative or friend due to contract restrictions, so it may be the time to branch out on your own.