Pros & Cons Of Retail Franchises

There’s a retail franchise opportunity to fit just about everybody’s dream of becoming a retailer, whether you want to open a fast food restaurant, a shoe shop or a computer store.

Before you decide to open a retail franchise, consider these factors to make sure it’s going to be for you…

Seasonal Trade

Most retailers experience peaks and troughs around the major celebrations and holidays in the year. Trade in the summer will drop off as people head for the beach. In the winter you’ll be busy when people are buying gifts and then trade will almost seize up completely in January as everybody recovers from the mad spending spree.

Cash Business

A cash-based business can be terrific because people have to pay for their goods before they take them away. This means you’ll not suffer with bad debtors or have to spend time chasing overdue accounts to get paid. On the down side, you will need to be careful with staff handling your cash and have thorough and consistent daily reconciliations between the till roll and the cash taken.


The most likely business to suffer from theft is a retail outlet, with shoplifters a common problem in many businesses. You’ll want to have a security policy, plus cameras recording faces so you have a record of what’s going on. If you’re uncomfortable with dealing with this kind of problem, retailing may not be ideal for you


Few businesses have so much opportunity for fun and enjoyment as a retailer. You can run special events and parties for customers, get kitted out with fancy dress for charity and generally create a fun atmosphere for your shoppers to enjoy.


With any retail store, there is a lot of money tied up in stock and if it goes out of fashion, you can be left with an expensive problem. Your ability to manage stock levels, retain a savvy head for buying fashionably and clear the decks without discounting heavily will play a large part in your profitability.


Opening a retail business is a huge financial commitment. On top of the high street or mall rent, you’ve got signage and shopfitting to pay before you’ve even got any stock to sell. Once you add thousands of pounds in stock, you’ve invested a lot of money before you’re ready to trade.


Retail staff can be brilliant if you’re a good, firm but fair manager. If you’re not experienced at staff management, a move into retailing can be a real emotional roller-coaster because your staff will be standing around chatting while the store is empty, leaving you feeling frustrated that they’re not doing more.

In Summary

Overall a retail business has many facets that will keep you on your toes. If you are considering a retail franchise, please make sure that you’re ready to deal with probably the widest range of challenges in any business type.

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