Advantages And Disadvantages Of Franchise Business

span>Share:Like any other business, there are numerous advantages and disadvantages of franchise business. Yes, there are quite a number of us who do not want to have our boss breathing down our necks for more work. We would like to be our own boss. But, we are hesitant because we do not have the adequate skill to start a business all on our own. It is at this juncture that franchising gains a lot of relevance. When you get into franchising, there is no fear of failure for you are getting into an already tried and tested territory.

Here are the advantages and disadvantages of franchise business:

>> The main advantage of franchising is that you are buying an already reputed company model. You are not only getting its name, you are also getting all the positive things that are associated with the company. This makes you job a lot easier for you do not have to work towards carving a niche for yourself in the market.

>> There is more bargaining power with the supplier for the order is going to be huge as there are a lot of franchises that the supplier needs to provide to. As the orders are going to be bulk, a better price and a competitive one could be asked for thereby increasing the profits potential.

>> There is tremendous network between the franchisor and the other franchisees. So, if any need be, you can turn to numerous sources for help in order to get out of the sticky predicament you are in.

>> The business is already proven and hence one does not have to test waters whether the business would click or flop. The franchisee can be offered a lot of support in terms of training, marketing and advertising too.

There are however a few who opine that there are no advantages of franchising. Let us take a look as to why they feel so:

>> There is no complete control over your business. The guidelines come in from the franchisor or the company which the franchisee has to strictly adhere to.

>> There is a pinch on the profit margins for the franchisee always has to share a certain percentage of royalty with the franchisor. Generally there is an agreement of royalty sharing between the two parties for a certain number of years. And in some cases, this may also not be there which means that the franchise owner has to share the commission for a very long time.

>> If anything goes wrong with the parent company, there is nothing that could save the franchise.

Therefore, one needs to weigh the advantages as well as disadvantages that a franchise business would bring along before they actually get into one.

by: Qiana John

POST COMMENT

Seo Services Takes Business To Another Level Wordpress Website Design: Creating Websites For Small Businesses Online Business Hurdles You Need To Overcome In 2013 Businesses Look Forward To Agile Testing Stationery Business Open Up The Domestic Battlefield Through E-commerce Application Hosting Makes Your Business Very Efficient Online Sms-a Cost-effective Tool For Business Communication Easy Business Promotion: Thanks To Corporate Gifts Legalize Your Alcohol Business With A Personal Licence Show Your Business On Every Car With Custom Stickers Cutting Costs On Your Business Expenses Custom Ios App Development In Business And Its Far-reaching Effects Necessary Preparations For Small Business Loans