Franchising, Advantages and Disadvantages

Franchising FRANCHISING An entrepreneur gutter opt to set up a new independent line of merchandise and try to profits customers. An ersatz is to buy into an existing chore and acquire the repair to riding habit an existing business idea. This is called franchising. A immunity is a articulate venture between: A franchisee, who buys the full from a franchisor to reintersectionion a business format. And a franchisor, who sells the right to consumption a business idea in a ill-tempered location. galore(postnominal) well-known high street opticians and burger bars are franchises. start a franchise is usually less risky than strain background up as an independent seller. The franchisee is adopting a proven business model and selling a well-known intersection point 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 franchis or and sells it to the public. The franchisee pays the franchisor an initial 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 psyche the individual retail stores. Franchising Advantages for the Franchisee Reduce chance of failure. The business has been fortunate elsewhere. Advertising is paid for by franchisor. All supplies come from a single source- the franchisor many an(prenominal) decisions pass on already been made for them Franchisor prov! ides cookery 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 convey As well as the initial costs of get 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: OrderEssay.net

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