Strikingly Website Builder Review: Pros, Cons, and Alternatives

Strikingly Website Builder Review_ Pros, Cons, and Alternatives

Strikingly is an all-inclusive website builder that’s tailored to helping entrepreneurs get up and running online quickly and easily. They’re platform requires zero code or design skills, meaning even those with no website experience can create a good-looking site in minutes.

See Strikingly’s Current Plans & Pricing

Recently, I gave Strikingly a try for a full Strikingly Website Builder review. But before I get into the pros and cons of my review, let’s dive into an overview about tools to build a website.

There are so many considerations to take into account when choosing a website builder — and really, there are a thousand ways to get what you want in the end in terms of functionality, convenience, pricing, etc. The thing to remember is: whether you’re building a simple personal website or running a business, the way you build your site has a lot of consequences.

In the long-term, it affects your versatility, functionality, and, of course, your brand. In the short-term, it can certainly add/take away a lot of headaches. That said, just like choosing a physical house or office, there is no such thing as an absolute “best” or “top” choice. There’s only the right choice relative to your goals, experience, and circumstances.

What Is Strikingly Website Builder?

On the wide spectrum of website building solutions, Strikingly lives on the end that is all-inclusive and provides everything you need to get started and grow your website. It contrasts with solutions where you buy, install, and manage all the “pieces” of your website separately.

Using Strikingly is sort of like leasing and customizing an apartment in a really classy development instead of buying and owning your own house. You’re still in control of decor, cleaning, and everything living-wise – but you leave the construction, plumbing, security, and infrastructure to the property owner. That point is key because there’s usually a direct tradeoff between convenience and control.

Everything may fit together just right with a website builder like Strikingly, but that may or may not be what you’re looking for.

As far as competition, Strikingly competes with all-inclusive website builders like GoDaddy, Wix, Squarespace, Jimdo, Yahoo!, and WordPress.com  (and Shopify for online stores).

Compared to their direct competition, they focus on speed and ease of use. Strikingly offers several website templates you can customize with no coding or design experience required (more on that in a bit).

One other quick aside – a disclosure – I receive referral fees from all the companies mentioned in this post. My opinions & research are based on my experiences as either a paying customer or consultant to a paying customer.

Pros of Using Strikingly Website Builder

Here’s what I found to be the pros of using Strikingly website builder — not just in comparison to direct competitors like GoDaddy and Wix, but as an overall website solution.

Straightforward Sign Up Process

One of the biggest pros of using Strikingly is how easy it is to get up and running on the platform. It’s basically just two steps — enter your information, pick your theme, and you’re in!

Strikingly sign up process

This is great for DIYers who want to get up and running as quickly as possible without the hassle of creating a detailed account, selecting a niche, etc.

Template Design / Functionality

Strikingly also offers a wide selection of template designs that are responsive (AKA they look good on a mobile device, tablet, and computer). There are a wide variety of options to choose from, and Strikingly has them broken down by niche, so you can find a template that includes the functionality your business may need.

Now, Strikingly isn’t technically drag-and-drop (where you choose from premade sections and “drop” those onto your page), but it is fairy intuitive to use. You can customize the styles on the page (like fonts and colors), and you can add premade sections and blocks, but you don’t get the ability to add elements willy nilly.

The whole setup is like painting by numbers.

There are obvious drawbacks to this setup, which I will cover in the disadvantages, but it is a real advantage to having limited but accessible design options. It makes Strikingly a great option for entrepreneurs/ DIY-ers who want a website that looks professionally designed without having to hire someone to build something custom or spend much time tweaking the design themselves.

Free Trial + Free Plan

Another benefit Strikingly is their 14-day free trial and free plan.

Strikingly allows you to trial any plan (even their highest-tiered option!) for 14 days before committing. This is great for DIYers who want to give a plan a test drive before committing.

They also offer a free plan, which includes a fair amount of features when compared to competitors, such as unlimited sites and limited ecommerce functionality.

There are some cons with the free plan, such as limited storage, limited pages, having to use a subdomain (ex: yourname.strikingly.com), and extremely limited integrations — but if you’re looking for a simple site for a short-term project, this could be a solid option.

Some Product Integration

While limited, Strikingly does offer some product integration, such as ecommerce functionality and apps in their app store (which give you the ability to add maps, forms, and other functionality to your site).

product integrations in Strikingly

You can also add on custom email for an additional $25/year. One thing to note — these additional integrations / functionality are all part of paid plans. This isn’t necessarily a con, but it is something to pay attention to… especially because you can find a lot of this functionality for less with other website builders (particularly if you went the self-hosted WordPress route).

Cons

Of course, no review would be complete without looking at the downsides. Every piece of software will have complaints. Let’s look at the specific cons I found with using Strikingly as your website builder.

Pricing + Plans

While Strikingly is fairly easy and convenient for DIYers and small businesses, they do leave a lot to be desired when it comes to pricing. All of their plans come with some sort of limitation, whether it be domains, the number of “pro” sites you can publish, or even storage.

Strikingly pricing plans

You also can’t access the VIP plan on the monthly payment option. Again, this isn’t inherently a con… unless you need the VIP features and want to pay monthly. Then you’re out of luck. The price also changes based on how long you commit to, which is a pro if you’re looking for a long-term solution, and a con if you’re looking for a short-term solution.

Limited Feature Set – Design

With any technology product, there is almost always a trade-off between convenience and control (think Android vs. iOS)

And you can really see this trade-off with the Strikingly website builder. The convenience of their design setup is great. It’s straightforward and fast, and puts your focus on getting your content into a premade template. You can add pages and sections based on your specific needs, but for the most part, it’s got everything you need.

However, if you want to go anywhere beyond the basics of design, you are limited with the builder. You can’t add anything within the premade sections, you can’t create your own sections, and the elements you can change on the overall template are fairly limited.

If your website is growing, or becoming a bigger part of your business, the design limitations can be crippling. And unlike other website builders that attempt to solve this issue through apps, extensions, or access to the website code or HTML, there is no outlet for a Strikingly website builder website. You can embed HTML/CSS/Javascript with a pro plan, but you can’t manipulate the actual template you’re provided with.

Limited Feature Set – Technical

The limitations on design also bleed over into technical limitations.

Technical limitations are features that you don’t know that you want until you want them, and then you find out you can’t have them.

These are things like integrations with Facebook, Pinterest, Twitter, Google Ads, social sharing options, blogging, and a whole host of every intermediate to advanced marketing tools on the internet. Now, as I mentioned above, Strikingly does give some integrations, like DNS / hosting services and email for an additional payment. They also allow you to insert code into the header of your website for things like analytics tracking (but only on Pro plans).

However, there are a ton of technical features that Strikingly doesn’t provide or that are extremely limited.

For example, let’s look at Strikingly’s SEO features. I can edit the site title, description, and add a category and social share image. But aside from that, I’m pretty locked in to what I have. There’s no options for Schema, Open Graph settings, etc. – much less highly advanced options.

Even the additional add-on products / integrations are limited. There’s not much to address marketing your site, aside from adding code for Google Analytics and Facebook Analytics or putting code into the header of your website, which again, is only available for Pro plans.

Ultimately, Strikingly leaves much to be desired when it comes to product integrations and additional technical features that can help you better market your website.

Strikingly Review Conclusion

Strikingly makes getting your website up and running simple and fast, which makes it a great choice for DIYers who want a quick and easy way to build a nice website without the hassle of getting into the code or having something custom made.

Check out Strikingly’s plans here.

However, like most all-inclusive website builders, there does come a point where there’s a tradeoff between convenience and control, especially when you factor in price. Strikingly pricing leaves something to be desired, especially when you get into the higher priced plans and take into account the technical limitations, even with the higher priced options. If you’re looking for something that offers more control and scalability, you’re better off elsewhere.

Not sure Strikingly fits your needs? Check out my quiz to find what the best website builder is for you based on your preferences.

The post Strikingly Website Builder Review: Pros, Cons, and Alternatives appeared first on ShivarWeb.

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Everything You Need To Know About eCommerce Payments

The post Everything You Need To Know About eCommerce Payments appeared first on Merchant Maverick.

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Homestead Website Builder Review: Pros, Cons, and Alternatives

Homestead Website Builder Review_ Pros, Cons, and Alternatives

Homestead is an all-inclusive website builder that’s tailored to helping businesses build their websites quickly, so they can have an online presence. Their platform includes “ready-to-use” templates that DIYers can customize to meet their needs, or simply “plug in” their content and hit publish.

See Homestead’s Current Plans & Pricing

Recently, I gave Homestead a try for a full Homestead Website Builder review. But before I get into the pros and cons of my review, let’s dive into an overview about tools to build a website.

There are so many considerations to take into account when choosing a website builder — and really, there are a thousand ways to get what you want in the end in terms of functionality, convenience, pricing, etc. The thing to remember is: whether you’re building a simple personal website or running a business, the way you build your site has a lot of consequences.

In the long-term, it affects your versatility, functionality, and, of course, your brand. In the short-term, it can certainly add/take away a lot of headaches. That said, just like choosing a physical house or office, there is no such thing as an absolute “best” or “top” choice. There’s only the right choice relative to your goals, experience, and circumstances.

What Is Homestead Website Builder?

On the wide spectrum of website building solutions, Homestead lives on the end that is all-inclusive and provides everything you need to get started and grow your website. It contrasts with solutions where you buy, install, and manage all the “pieces” of your website separately.

Using Homestead is sort of like leasing and customizing an apartment in a really classy development instead of buying and owning your own house. You’re still in control of decor, cleaning, and everything living-wise – but you leave the construction, plumbing, security, and infrastructure to the property owner. That point is key because there’s usually a direct tradeoff between convenience and control.

Everything may fit together just right with a website builder like Homestead, but that may or may not be what you’re looking for.

As far as competition, Homestead competes with all-inclusive website builders like GoDaddy, Wix, Squarespace, Jimdo, Yahoo!, and WordPress.com  (and Shopify for online stores).

Compared to their direct competition, they focus more on getting businesses up and running not just with an easy-to-create website, but also through traffic driving strategies and consultations.

In fact – Homestead was one of the original website builders with a positively ancient history going back to the early 2000s. They, along with Blogger, helped make websites accessible to everyone regardless of HTML knowledge. Their product has evolved over time, but they are still ticking.

One other quick aside – a disclosure – I receive referral fees from all the companies mentioned in this post. My opinions & research are based on my experiences as either a paying customer or consultant to a paying customer.

Pros of Using Homestead Website Builder

Here’s what I found to be the pros of using Homestead website builder — not just in comparison to direct competitors like GoDaddy and Wix, but as an overall website solution.

Template Design / Functionality

Homestead offers a wide selection of template designs that are responsive (AKA they look good on a mobile device, tablet, and computer), which makes the website builder a solid option for a variety of niches.

In fact, I was pleasantly surprised with just how many templates Homestead offers and how well designed they are. When I was first doing research, I checked out their sample templates. These looked… outdated… to say the least.

Once you actually get inside the platform, the template selections are great.

Speaking of being inside the platform, let’s talk about functionality. The Homestead Website Builder is incredibly easy to use. When you first log into the platform, they offer a quick tutorial of how to use the features.

The whole set up is incredibly intuitive. You can add new sections (pre-made or blank), drag and drop different elements like photos, buttons, text, etc, and customize the existing template to match your branding.

There are obvious drawbacks to this setup, which I will cover in the disadvantages, but it is a real advantage to having accessible design options.

It makes Homestead a great option for entrepreneurs/ DIY-ers who want a website that looks professionally designed without having to hire someone to build something custom or spend hours trying to figure out how to tweak the design themselves.

Free 30-Day Trial

Another benefit Homestead is their 30-day free trial.

Homestead allows you to trial any plan (even their highest-tiered option!) for 30 days before committing. This is great for DIYers who want to give a plan a test drive before committing.

It is important to note, however, that your subscription will automatically renew, which means if you don’t cancel within 30 days, your card will automatically be charged.

Homestead sign up credit card info

This isn’t necessarily a “con”, but it something to be aware of if you’re just testing out the builder.

Some Product Integration

While limited, Homestead does offer some product integration, such as ecommerce functionality and domains / email.

One thing to note — these additional integrations / functionality are either part of paid plans or require additional fees. This isn’t necessarily a con, but it is something to pay attention to… especially because you can find a lot of this functionality for less with other website builders.

Cons

Of course, no review would be complete without looking at the downsides. Every piece of software will have complaints. Let’s look at the specific cons I found with using Homestead as your website builder.

Pricing + Plans

Perhaps the biggest con with Homestead’s website builder is their pricing and plan structure.

All of their plans come with storage caps, which means you’re limited to the photos, documents, files, etc. you store on your website. Their plans also limit bandwidth across all tiers.

Homestead Pricing

There are also some significant fees for add-ons and advanced features on top of the paid plans. When you compare Homestead to other all-inclusive website builders, they’re definitely on the pricier side for similar features and less storage.

Design & Branding

Trust is a huge factor when choosing a website builder (or any other website product). You want to know that whoever you’re doing business with (and giving your credit card to) is a legitimate company who is going to stand by their offer.

Trust comes in many forms — word of mouth, reviews, years of existence, etc. — but it also comes via design and branding. If a business doesn’t look particularly trustworthy or credible based on their website design, it leaves you wondering… ESPECIALLY when you’re using them to build your website design.

While we didn’t have any issues with Homestead in terms of getting started with their website builder, their website design and branding does leave something to be desired. They haven’t quite kept up with the times, and it actually made me doubt that their template designs would be worth using.

homestead branding

Limited Feature Set – Technical

Technical limitations are features that you don’t know that you want until you want them, and then you find out you can’t have them.

These are things like integrations with Facebook, Pinterest, Twitter, Google Ads, social sharing options, blogging, and a whole host of every intermediate to advanced marketing tools on the internet.

Now, as I mentioned above, Homestead does give some integrations, like DNS / hosting services and email for an additional payment.

They also allow you to insert code into the header of your website for things like analytics tracking, and even offer some ecommerce functionality.

However, there are a ton of technical features that Homestead doesn’t provide or that are extremely limited.

For example, let’s look at Homestead’s Advanced settings. I can edit the site meta tags and header tags, and hide the site from search engines. But aside from that, I’m pretty locked in. There’s no options for Schema, Open Graph settings, etc. – much less highly advanced options.

Even the additional add-on products / integrations are limited. There’s not much to address marketing your site, aside from adding code for Google Analytics and or adding social share functionality. Even their traffic generating / SEO service add-on sounds… less than ideal.

homestead seo add on servie

Ultimately, Homestead leaves much to be desired when it comes to product integrations and additional technical features that can help you better market your website.

Homestead Review Conclusion

Homestead has well-designed templates that allow for quite a bit of customization when compared to other all-inclusive website builders. They make getting a good-looking website up and running fairly easy.

Check out Homestead’s plans here.

However, like most all-inclusive website builders, there does come a point where there’s a tradeoff between convenience and control, especially when you factor in price. Homestead’s pricing leaves a lot to be desired, especially when you get into the higher priced plans and take into account the technical limitations AND the extra fees for add-ons, even with the higher priced options. If you’re looking for something that offers more control and scalability for less cost, you’re better off elsewhere.

Not sure Homestead fits your needs? Check out my quiz to find what the best website builder is for you based on your preferences.

The post Homestead Website Builder Review: Pros, Cons, and Alternatives appeared first on ShivarWeb.

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The Complete Guide To Finding An Internet Merchant Account

The post The Complete Guide To Finding An Internet Merchant Account appeared first on Merchant Maverick.

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What Is Shopify Pay And Why Does It Matter For Merchants?

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1&1 IONOS MyWebsite Review: Pros, Cons, and Alternatives

1&1 IONOS MyWebsite Review_ Pros, Cons, and Alternatives

1&1 MyWebsite is an all-inclusive website builder from German web hosting company IONOS. Their website builder is geared toward helping small businesses get up and running online with pre-made templates that include images and text based on your niche. Their platform requires zero code or design skills, meaning even those with no website experience can create a good-looking site in minutes.

See 1&1 MyWebsite’s Current Plans & Pricing

Recently, I gave 1&1 MyWebsite a try for a full 1&1 MyWebsite review (I have previously reviewed their hosting services). But before I get into the pros and cons of this website builder review, let’s dive into an overview about tools to build a website.

There are so many considerations to take into account when choosing a website builder — and really, there are a thousand ways to get what you want in the end in terms of functionality, convenience, pricing, etc. The thing to remember is: whether you’re building a simple personal website or running a business, the way you build your site has a lot of consequences.

In the long-term, it affects your versatility, functionality, and, of course, your brand. In the short-term, it can certainly add/take away a lot of headaches. That said, just like choosing a physical house or office, there is no such thing as an absolute “best” or “top” choice. There’s only the right choice relative to your goals, experience, and circumstances.

What Is the 1&1 MyWebsite Website Builder?

On the wide spectrum of website building solutions, 1&1 MyWebsite lives on the end that is all-inclusive and provides everything you need to get started and grow your website. It contrasts with solutions where you buy, install, and manage all the “pieces” of your website separately.

Using 1&1 MyWebsite is sort of like leasing and customizing an apartment in a really classy development instead of buying and owning your own house. You’re still in control of decor, cleaning, and everything living-wise – but you leave the construction, plumbing, security, and infrastructure to the property owner. That point is key because there’s usually a direct tradeoff between convenience and control.

Everything may fit together just right with a website builder like 1&1 MyWebsite, but that may or may not be what you’re looking for.

As far as competition, 1&1 MyWebsite competes with all-inclusive website builders like GoDaddy, Wix, Squarespace, Jimdo, Yahoo!, and WordPress.com  (and Shopify for online stores).

Compared to their direct competition, they focus on ecommerce functionality (they have three separate ecommerce plans — but more on that in a bit!). 1&1 MyWebsite offers several website templates organized by niche (i.e. fitness, consulting, business services, etc).

One other quick aside – a disclosure – I receive referral fees from all the companies mentioned in this post. My opinions & research are based on my experiences as either a paying customer or consultant to a paying customer.

Pros of Using 1&1 MyWebsite Builder

Here’s what I found to be the pros of using the 1&1 MyWebsite builder — not just in comparison to direct competitors like GoDaddy and Wix, but as an overall website solution.

Template Design / Customization

1&1 MyWebsite offers a wide selection of template designs that are responsive (AKA they look good on a mobile device, tablet, and computer) and are premade with images, layouts, and text that are chosen specifically for your selected niche.

Not only to the templates look good — they’re also incredibly easy to customize. The whole set up is intuitive. You can add new sections, drag and drop different elements like photos, buttons, text, etc. on custom pages, and even dive into developer mode to edit the code of the template.

custom page 1 and 1 builder
Developer-Mode-IONOS-Website-Builder

As far as all-inclusive website builders go, 1&1 MyWebsite gives users a ton of flexibility in customization. Typically, there’s a tradeoff between convenience and control (and there still is here — which we’ll get to in a bit), but again, when compared to competitors, 1&1 MyWebsite’s Builder gives DIYers more control than most!

$1 Trial + No obligation

Another benefit 1&1 MyWebsite is their $1 trial for their baseline plan, and the fact that all plans allow users to cancel at any time.

1&1 MyWebsite allows you to use their Online plan for $1 for the first month, which is great for DIYers who want to give the platform a test drive before committing for the long-term (as long as you don’t need ecommerce features!).

They also offer a “no risk, anytime cancellation”, which means you can cancel your plan at any time and aren’t locked in for the long haul. This is a big pro for those who want the advanced functionality of the ecommerce plans, but perhaps have a short-term project or don’t want to be stuck in a long-term commitment before giving the platform a test drive for a few months.

Functionality + Integrations

Another pro of 1&1 MyWebsite’s Builder is their functionality and additional product integrations, such as ecommerce, domains, email, social media widgets, and more.

Even their basic Online Plan (which is just $5/month) offers extensive app functionality, such as Yelp Reviews, Live Chat functionality, PayPal integration, OpenTable integration, MailChimp, etc.

They also make it easy to upgrade to a higher plan for advanced functionality while maintaining your current content.

Again, there’s always going to be some sort of trade-off between convenience and control, but when it comes to all-inclusive website builders, 1&1 MyWebsite gives users A LOT of control in addition to convenience.

Pricing

Another pro of 1&1 MyWebsite is that their pricing is very competitive not only compared to other all-inclusive website builders but also with buying your own hosting.

Their Starter plan starts around $5/mo (with a $1 trial for the first month) and you can cancel at any time. You are limited to one domain and 5 email accounts, but even this is more than some all-inclusive competitors offer.

There also doesn’t seem to be any caps on storage space, which is amazing given the pricing – though I do wish they’d be clearer with the feature set. In fact, this feature transparency is a bit of a con for 1&1. It’s not that they don’t have the feature / storage – it’s that so many builders do overpromise, that they need to be much clearer on what you are getting.

Even their ecommerce pricing, while more expensive than doing the same thing on your own hosting, is much cheaper than comparable plans with direct competitors.

Compared to building your own website on your host and especially with other website builders, 1&1 MyWebsite’s pricing is very competitive. Price isn’t everything, but I really like how they structure it.

Cons

Of course, no review would be complete without looking at the downsides. Every piece of software will have complaints. Let’s look at the specific cons I found with using 1&1 MyWebsite as your website builder.

Setup Clarity

While 1&1 MyWebsite is fairly easy to use and convenient for DIYers who want to build a website fast (or even create something more custom), there was some confusion when I signed up — which is the biggest con with the platform.

For starters, I named my website and registered my free domain… so I thought. After I chose my theme and published my site, I came back to find my website was unnamed and had a subdomain.

Now, there’s always a chance of user error… but it was confusing nonetheless.

I also couldn’t seem to find information on storage caps. Most all-inclusive website builders cap storage and/or pages. But IONOS didn’t say anything about storage on their plans at all.

In fact, the only place I did see mention of storage was in an upsell on the checkout page.

1&1 MyWebsite Review Conclusion

1&1 MyWebsite makes getting your website up and running simple and fast, and they include advanced customization options and functionality integrations for those who want to take their site to the next level. This, combined with their pricing, makes them a great choice for those looking to bundle their hosting, domain, and website builder.

Check out 1&1 MyWebsite plans here.

However, like all website software, there’s no such thing as “perfect”. The lack of clarity and transparency tainted what would have been a smooth experience with 1&1 MyWebsite, and made me concerned about what else I was missing when using the platform.

Not sure 1&1 MyWebsite fits your needs? Check out my quiz to find what the best website builder is for you based on your preferences.

The post 1&1 IONOS MyWebsite Review: Pros, Cons, and Alternatives appeared first on ShivarWeb.

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The Merchant’s Guide To Recurring Payments And Billing

The post The Merchant’s Guide To Recurring Payments And Billing appeared first on Merchant Maverick.

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The 3 Types Of Franchises You Could Own

Quick Guide: Types Of Franchises

  • Business Format Franchises: The most common type of franchise. The franchisee not only sells a certain product, but also produces and delivers the product or service in accordance with the franchisor’s proprietary ingredients and/or practices, and with the franchisor’s assistance. Examples: Subway (fast food chain), Marriott (hotel chain), Hertz (car rental company), Nike (retail outlet), The UPS Store (mailing and shipping outlet), Great Clips (haircut salon).
  • Manufacturing Franchises: The franchisee buys the license to produce a branded product, or part of a product, in accordance with the franchisor’s practices and standards. The product is then further assembled and/or distributed to consumers via downstream channels. Common examples include automotive manufacturers (Hyundai) and beverage manufacturers (Coca Cola).
  • Product Franchises: The franchisee buys the rights to sell a certain product at their own establishment, in exchange for paying the franchisor a royalty fee and/or with certain limitations. The limitation may be that the store must sell the franchisors’ products exclusively (but this is not always the case). Common examples include gas stations (Exxon), vending machines (Coca Cola), and car dealerships (Ford Motor Company).

Business Format Franchises

A business format franchise is the most common type of franchise. A business format franchise produces and delivers not only a product or service, but also a customer experience, all in accordance with the franchisor’s specific standards. In exchange for a one-time franchise fee and ongoing royalty fees, the franchisee also receives assistance from the franchisor in terms of training, marketing, quality control systems, and other aspects of running the business. Business format franchises dominate many industries, from fast food, to retail, to hospitality, along with many others.  Some popular examples include McDonald’s, H&R Block, Starbucks, Jamba Juice, Hilton Hotels, and 7-Eleven.

Usually, it is not obvious to the consumer whether a chain establishment is company-owned or franchised because the consumer experience varies minimally or not-at-all from one location to the next, nor does it vary significantly depending on whether you’re at a company-owned vs. franchised establishment. For example, fast-casual eatery Smashburger has some corporate-owned locations and some franchise-owned locations, but they all operate pretty much the same.

Business format franchises vary significantly in how much they cost to open and operate. It may be possible to open a home-based franchise such as a travel agent franchise for just a few thousand dollars; at the other end of the spectrum, opening a popular restaurant franchise can set you back several million dollars. Business format franchisees become franchise owners either by developing a new franchise location from scratch, or sometimes by purchasing an existing franchise location. Some franchisors require prospective franchisees to agree to develop multiple franchise locations within a certain timeframe.

Pros & Cons Of Business Format Franchise

The Pros:

  • You have a certain level of autonomy, as you own and operate your own business.
  • You have a built-in base of customers who are already love your product.
  • You have the security of a proven business model.
  • You receive corporate guidance, training, and marketing.

The Cons:

  • You have very little say in how you run your business—where you purchase raw materials, how you deliver the product/service, which business management software you use, etc.
  • The franchise fee and other costs of doing business can be prohibitively expensive, with no way to control these costs, which are determined by the franchisor.
  • The profit margin is narrow (compared to running your own business), due to high operating costs and franchise fees.

Is A Business Format Franchise Right For You?

The ideal candidate for a business format franchise has the following characteristics:

  • You don’t necessarily have any specific skill-set but want to own and operate your own business.
  • You have or can access the capital necessary to pay the franchise fee and other startup costs.
  • You don’t mind following corporate practices/instructions to a tee.
  • You are willing to forfeit part of your profit in exchange for corporate guidance and the safety of a proven business model.

Manufacturing Franchises

A manufacturing franchise is a manufacturing company that produces the raw or finished product that a franchisor ultimately sells. Sometimes, these operations are also called “suppliers” or “partners.” They are often located in countries outside the U.S. where the cost of production is cheaper. Some examples include automobile and automotive parts manufacturers, computer manufacturers, clothing manufacturers, and food and beverage manufacturers. Not all consumer product use manufacturing franchises; some trademarked products are manufactured by company-owned facilities.

Coca Cola is an example of a company that partners with manufacturing franchises to manufacture the syrup that goes into their soft drinks. The syrup is then sold to a bottling company that adds water and carbonation, and then bottles and distributes the drinks.

Manufacturing franchises must pay the franchisor a fee in for the license to produce the raw materials or finished product with the company’s trademarked name. The product must be manufactured within strict specifications so that it meets the franchisor’s quality standards and is indistinguishable from the products produced by the company’s other manufacturers. These are significant operations and require not only owning the means to production, but also experience, expertise, and a lot of legal help to ensure that all relevant laws and policies are being adhered to.

Pros & Cons Of A Manufacturing Franchise

The Pros:

  • With an efficient production system, you can potentially make a substantial amount of money.
  • You may have a certain amount of autonomy as to how you run your operations, as long as you produce the product to the franchisor’s specifications.
  • You do not have to worry about sales, marketing, or any other customer-facing aspect of the business.

The Cons:

  • Startup and overhead costs are both substantial.
  • Fluctuations in raw material and energy costs can cut into your profit margin.
  • You need to meet a number of strict codes and specifications, adhering to the company’s policies and all relevant laws.

Is A Manufacturing Franchise Right For You?

You might consider a manufacturing franchise if you fit the following profile:

  • You already own manufacturing facilities or have the capital to obtain or build them.
  • You have experience mass-producing products for other franchisors or can partner with someone who has this experience.
  • Your operations meet or can meet all of a franchisor’s supplier requirements; for example, here are the requirements to become a Coca Cola supplier.

Product Franchises

A product franchise, also sometimes called a “product distributor” franchise, is a business model in which a company agrees to sell a trademarked product, either exclusively or not. Some examples include car dealerships, auto parts suppliers, tire stores, and convenience store inventory. The car dealership may sell a franchisor’s product exclusively, while a convenience store may agree to purchase a certain number of units, or agree to sell the franchisor’s products to the exclusion of certain competing products. Vending machines can also be considered a type of product franchise. Many gas stations, including Exxon, follow a product franchise model as well.

Depending on the agreement, the franchisee may or may not have to pay fees to the franchisor to buy the license to sell the trademarked product.

With a product franchise, the product itself is the only aspect of the business distributed per the franchisor’s terms. The consumer experience can vary a lot from one business to the next, as the distributor (franchisee) maintains control over most aspects of their business, and the franchisor does not offer any assistance in terms of sales processes, employee training, etc.

Pros & Cons Of A Product Franchise

The Pros:

  • You benefit from the reputation of name-brand product, without having to produce it.
  • You have very few upfront costs, apart from the cost to purchase the wholesale products from the franchisor.
  • You have the flexibility to run your business how you see fit.

The Cons:

  • You could find yourself stuck with a surplus of an unpopular product, possibly forcing you to sell the product at a loss.
  • You receive no or minimal support/assistance from the franchisor.
  • You need to own your storefront where you can distribute the product.

Is A Product Franchise Right For You?

You could be the ideal candidate for a product franchise if you have the following attributes:

  • You already own your own sales channel (usually a storefront establishment but could also include eCommerce) or can access the capital to do so.
  • Your customers ask for a certain (franchised) product, or you have reason to believe your customers would buy said product.
  • You want to maintain control of your own business without having to deal with franchisor oversight.

Final Thoughts

There are three main types of franchising relationships, each of which represents a different segment of a franchised company’s supply chain. Depending on factors such as the level of control you want over your business, your business experience/skill-set, and the amount of capital you can access, you might decide to open a business format franchise, product franchise, or a manufacturing franchise. Or, you might just decide to go into business for yourself! For more information on franchise ownership, check out some more franchise resources we’ve put together for you:

  • The Step-By-Step Guide To Buying A Franchise
  • Franchise Financing: The 7 Best Places To Get A Franchise Loan
  • How Franchises Work: The Complete Guide For Entrepreneurs