Franchising, Advantages and Disadvantages

Franchising FRANCHISING An entrepreneur stand opt to set up a new independent line of merchandise and try to go on customers. An ersatz is to buy into an existing chore and acquire the mightily to riding habit an existing business idea. This is called franchising. A in good order is a articulate venture between: A franchisee, who buys the right from a franchisor to reintersectionion a business format. And a franchisor, who sells the right to workout a business idea in a peculiar(a) location. galore(postnominal) well-known high street opticians and burger bars are franchises. bloodline a franchise is usually less risky than permeate background up as an independent seller. The franchisee is adopting a proven business model and selling a well-known production in a new local branch. A franchisor is a business with a product/ service idea that does non involve to sell customers directly The franchisee is the people who buys the idea from the franchiso r and sells it to the public. The franchisee pays the franchisor an sign fee, then periodical fees to cover advertising etc. The franchisee pays the franchisor a percentage of their profits. Franchising: Advantages to Franchisor magnification is paying(a) for by franchisee. Expansion is fast and effective. Franchisor can touch on large profits via franchisees.

Franchisor does not problems of individualist the individual retail stores. Franchising Advantages for the Franchisee Reduce chance of failure. The business has been triple-crown elsewhere. Advertising is paid for by franchisor. All supplies come from a single sourc e- the franchisor many an(prenominal) deci! sions halt already been made for them Franchisor provides educational activity for staff. Banks more volition to loan money to franchises dues to their track record. Franchising: Disadvantages of owning a Franchise Costs whitethorn be higher than you take care As well as the initial costs of buying the franchise, you pay continuing care service fees and you may have to agree to buy the product from the franchisor. The...If you want to get a full essay, order it on our website: BestEssayCheap.com

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