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Consider the classic example: Franchisors make money by collecting a percentage of sales as a royalty for letting the franchisee use their brand name and operating system.

Franchisees make money from the outlet's profits. Anything that boosts sales, but not profits will create conflict between you and the franchisee.

If you want to offer customers promotional coupons, franchisees may likely object. Coupons boost sales, but not always profits, benefitting the franchisor, but not necessarily the franchisee.

A weaker core community. It's more difficult to get franchisees as opposed to hired store managers to work together.

Franchisees have an incentive to profit from each other's efforts to generate business. For instance, your franchisees might try to get out of paying for the advertising needed to attract customers, figuring they will get the customers anyway if other franchisees buy the advertising.

Of course, if all of them do the same thing, you end up with no customers because you've got no advertising.

There are ways of minimizing franchisee free riding, of course, but those cost money and require enforcing your franchisee contracts in court.

Innovation challenges. It's a lot harder to innovate with franchising than if you own your own outlets. With franchising, if you come up with a new idea, you have to negotiate with your franchisees to get them to accept the new product or whatever innovation you want to introduce, instead of just putting the new idea in place on your own.

Before you talk to the experts about franchising your business, consider these pros and cons. Franchising isn't a silver bullet for business expansion.

But when the advantages outweigh the disadvantages, it can be a great way to grow your business. This is a big deal to me.

Especially in business. Maybe you like to work in spurts. When you are your own boss, you eliminate the old-fashioned need to warm a chair for specific hours.

Some bosses are better than others at upgrading the technology, choosing the location, arranging for parking, and so on. Do you like a stand-up desk, or any desk?

Up to you. A good view? Good coffee in the kitchen? Meet people in Starbucks, or spend every day in Starbucks—why not?

You decide. Over and over, during the decade and a half that I was a sole proprietor consulting on business planning with clients, I ended up late at night, tired, stuck with finishing up a presentation due the next day.

My clients were in charge. We need to get the software finished, tested, and published. We needed to keep our website up to date.

We needed to meet marketing deadlines, product development, finances, the whole thing. Your word is your most powerful asset. This decision involves considering all reasonable options before you come to a final conclusion.

Can you lease an apartment or home and better fulfill your personal needs and objectives? Are there any other options to consider?

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Coupons boost sales, but not always profits, benefitting the franchisor, but not necessarily the franchisee. A weaker core community. It's more difficult to get franchisees as opposed to hired store managers to work together.

Franchisees have an incentive to profit from each other's efforts to generate business. For instance, your franchisees might try to get out of paying for the advertising needed to attract customers, figuring they will get the customers anyway if other franchisees buy the advertising.

Of course, if all of them do the same thing, you end up with no customers because you've got no advertising. There are ways of minimizing franchisee free riding, of course, but those cost money and require enforcing your franchisee contracts in court.

Innovation challenges. It's a lot harder to innovate with franchising than if you own your own outlets. With franchising, if you come up with a new idea, you have to negotiate with your franchisees to get them to accept the new product or whatever innovation you want to introduce, instead of just putting the new idea in place on your own.

Before you talk to the experts about franchising your business, consider these pros and cons. Franchising isn't a silver bullet for business expansion.

But when the advantages outweigh the disadvantages, it can be a great way to grow your business. Latest Video Start A Business. Next Article -- shares link Add to Queue.

Scott Shane. May 7, 4 min read. Opinions expressed by Entrepreneur contributors are their own. More from Entrepreneur.

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