The franchise business model has proven to work across a variety of industries, including restaurant, retail, lodging and services, but a franchisee might not survive if they are "underfinanced, understaffed and not as knowledgeable as they should be,” according to Debbie Shwetz, co-founder and co-owner of the Nothing Bundt Cakes chain. Franchising offers entrepreneurs several advantages, including a proven business model and brand recognition, but it can have its negatives, especially when it comes to choosing the right franchisees, Shwetz said.

Related Summaries