The Business of Franchising

If I ever went into franchising I wanted it to be in a clothing business. I chose American Eagle to franchise because I shop there a lot and have always liked their style and the way things seem to be run. To enter into an agreement with AEO (American Eagle Outfitters) it would cost around 40,000 dollars. The contract includes items like how long the agreement will last, the location of the store, section on how they want the business to be advertising, trade mark rules, renewal rights, and exit strategies. The royalties/fees is around 10,000 dollars. American Eagle Outfitters does offer training for their new franchises. They want to you to adhere to the standards of how the store should look to keep things consistent and they have a behavior standard for how their costumers should be cared for. I did not find an negative reviews about franchising with AEO. I found a few positive reviews talking about how they liked working with the company and that corporate did a good job communicating with their store.

Personally I do not think franchising is for me. I think I would end up feeling constricted by not being able to make a lot of my own decisions and not being in total control of my store. I would rather have my own business that I am in charge of and not a be a part of a big corporation.

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