franchises

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  • franchises
    • limitations
      • share of profit or sale has to be paid to the franchiser each year
      • local promotions still has to be paid for by franchisee
      • initial franchise licence fee can be expensive
      • no choice of supplies or suppliers to be used
      • strict rule over pricing and layout of the outlet reduces owners control over his/her own business
    • benefits
      • national advertising paid for by the franchiser
      • supplies obtained from established and quality-checked supplies
      • fewer chances of new business failing because of an established brand and product are being used
      • franchiser agrees not to open another branch in the local area
      • advice and training offered by the franchiser

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