Pros And Cons Of A Franchise

Do you ever see hundreds of McDonald’s, Wendy’s, KFC, or even Wal-Marts, all over the world? Do you ever wonder how all these companies are being ran by one person? In fact, several people are running these businesses. So business owner over business owner type of deal. Andrew Brooke once said, the beauty of the Franchise is that people buy a brand and a system. With a franchise, you pay a fraction of what it would cost to do it on your own (>). One person owns the brand that is considered the Franchisor, but several others “Franchisee” operate the brand. This type of business strategy can be helpful in many ways. It gives you the freedom to invest your assets into a company that already has a business system. Franchising was started back …show more content…
The benefits are flexible, giving the franchisee an opportunity for the company to grow its market share. Most importantly, in consideration of your assets invested, being able to not change the business system already established, takes a lot of belief that you can be successful in using someone’s else system than your own. Having clear knowledge of a franchise you are considering should be a test to raises independent awareness and high margins for …show more content…
The franchisor has established a trial & error test and has eliminated most of the commonly made mistakes that are often discovered when starting a business. It is the marketing and operation system that you are buying when you purchase the rights of a franchise. The section with franchising to be précised about is the part of franchising 's power. As a franchisee you are expected to follow the system that you have purchased. This part is where it can be difficult if you are an entrepreneur; always wanting to have the power. It is said that franchisor 's are open to listen to new ideas and improvements but likely they will expect the system to run as directed in the operation manual. The business should have the same standard look and feel that every other franchise have, which forms confidence with the consumer’s to trust you. Though franchising is a safer way into self-employment, it is not as simple as just investing your money & the operation just runs as smoothly as it should. Expecting the franchisor to do your work is predisposed and will not happen. Every thing that is included in the purchasing of the rights is a tested operation format, brand awareness, provision and assistance. It will be still be your hard work and abilities that make the business run in your extent. As a purchasing franchisee, you will have access to market information,