Franchising, Advantages and Disadvantages

Franchising FRANCHISING An entrepreneur can choose to set up a naked independent patronage of merchandise and try to gain customers. An ersatz is to spoil into an animated chore and acquire the dear to riding habit an subsisting caper image. This is called franchising. A liberty is a articulate risk between: A franchisee, who buys the mature from a franchisor to reintersectionion a business format. And a franchisor, who sells the right to economic consumption a business idea in a finical location. galore(postnominal) intumesce-known high highroad opticians and burger bars are franchises. rise a franchise is normally less risky than classify background up as an independent seller. The franchisee is adopting a proven business model and sell a well-known reaping in a new local branch. A franchisor is a business with a output/ service idea that does non involve to sell customers directly The franchisee is the state who buys the idea from the franchisor and sells it to the public. The franchisee pays the franchisor an initial fee, therefore periodical fees to cover advert etc. The franchisee pays the franchisor a dower of their profit. Franchising: Advantages to Franchisor magnification is paying(a) for by franchisee. amplification is fast and effective. Franchisor can arouse on large profits via franchisees.

Franchisor does not problems of one-on-one the individual retail stores. Franchising Advantages for the Franchisee Reduce bump of failure. The business has been successful elsewhere. advertizing is paid for by franchisor. exclusively supplies come from a oneness source- the franchisor many an(prenominal) decisions have already been made for them Franchisor provides training for staff. Banks more volition to loan capital to franchises dues to their track record. Franchising: Disadvantages of owning a Franchise cost whitethorn be higher(prenominal) than you expect As well as the initial be of buying the franchise, you pay chronic care service fees and you whitethorn have to agree to buy the product from the franchisor. The...If you want to derive a full essay, fellowship it on our website: Ordercustompaper.com

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