Advantages and disadvantages of franchising

A franchise is an agreement that allows an individual to own his practice session while welf aring from the know-how, trademark and reputation of the established bulletproof. In clock of financial crisis, the economy suffers a downturn and starting disembowel a melodic line through franchising becomes preferable due to many advantages that exist. foremost franchisee hatful benefit from the wide recognition of vane look up of the franchiser. A franchiser is usually a hale established firm with wide customer base and expectant brand concern recognition. Brand equity is all- fundamental(a) such that the franchisee move benefit from consumer awareness and loyalty, at the same time defends against controversy at a lower place economic downturn. It is non needful for the franchisee to spend time, comprise and political campaign in building up customer goodwill and establishing a known brand fix. Take McDonalds as an example. Its restaurants check its gross taxation and competitive power under economic downturns and great competition in the catering industry as the brand make water is already widely recognized and favored by the local anaesthetic anesthetic people。 Secondly franchisee can gain portal to mammoth business management skills. The franchiser usually possesses important business skills equal that in production management, financial management and marketing.

These skills are important to a business as they help development strength and effectiveness in terms of resource parcelling and finishing achievement of business, increasing the change of success of business. The franchisee is not necessary to obtain all these s kills by itself through experiences, foster! ing and growing as it is provided by the franchiser. Take 7-11 as an example. Its ladder of goods constitution and the shop layout management is given to all franchisee to maintain a standardized effective store management. Thirdly about cost in operating a business can be lowered by franchising. Keep the expense in starting a business acceptably low is important as risks are involved in the business and excess cost...If you wishing to get a full essay, order it on our website: OrderEssay.net

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