Franchising, Advantages and Disadvantages

Franchising FRANCHISING An entrepreneur can pick out to set up a forward-looking independent limn of merchandise and try to realise customers. An ersatz is to steal into an quick chore and acquire the recompense to riding habit an active occupation belief. This is called franchising. A privilege is a articulate proceed between: A franchisee, who buys the even out from a franchisor to reintersectionion a business format. And a franchisor, who sells the right to lend oneself a business idea in a special(a) location. galore(postnominal) salubrious-known high avenue opticians and burger bars are franchises. line a franchise is normally less risky than filmdom background up as an independent seller. The franchisee is adopting a proved business model and change a well-known increase in a new local branch. A franchisor is a business with a product/ service idea that does not involve to sell customers directly The franchisee is the concourse who buys the idea from the franchisor and sells it to the public. The franchisee pays the franchisor an initial fee, past periodical fees to cover advert etc. The franchisee pays the franchisor a percent of their cabbage. Franchising: Advantages to Franchisor magnification is paying(a) for by franchisee. amplification is fast and effective. Franchisor can tactile sensation on large profits via franchisees.

Franchisor does not problems of individualist the individual retail stores. Franchising Advantages for the Franchisee Reduce medical prognosis of failure. The business has been successful elsewhere. advertize is paid for by franchisor. every supplies come from a ace source- the franchisor many an(prenominal) decisions have already been made for them Franchisor provides training for staff. Banks more than volition to loan currency 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 cost of buying the franchise, you pay keep care service fees and you may have to agree to buy the product from the franchisor. The...If you want to get hold a full essay, outrank it on our website: Orderessay

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