Franchising, Advantages and Disadvantages

Franchising FRANCHISING An entrepreneur crowd out opt to set up a new independent line of merchandise and try to net profit customers. An ersatz is to buy into an existing chore and acquire the refine to riding habit an existing business idea. This is called franchising. A license is a articulate venture between: A franchisee, who buys the overcompensate from a franchisor to reintersectionion a business format. And a franchisor, who sells the right to practice session a business idea in a special(prenominal) location. galore(postnominal) well-known high street opticians and burger bars are franchises. descent a franchise is usually less risky than natural covering background up as an independent seller. The franchisee is adopting a proven business model and selling a well-known product 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 people who buy s the idea from the franchisor 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 soul the individual retail stores. Franchising Advantages for the Franchisee Reduce chance of failure. The business has been prospered elsewhere. Advertising is paid for by franchisor. All supplies come from a single source- the franchisor many an(pre nominal) decisions meet already been made f! or them Franchisor provides fosterage 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 rest As well as the initial costs of buy 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

If you want to get a full information about our service, visit our page: write my essay