Franchises - advantages and disadvanatges for the franchisee of running a franchise.

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Franchises - advantages and disadvanatges for the franchisee of running a franchise.

Advantages

  • A well known name
  • Succesful/proven business idea
  • Training and finacial support to set up new franchise outlet
  • Marketing, advertising and promotion are done nationally by the franchisor
  • Buying is done centrally by the franchisor - helps franchise outlets keep costs down
  • Expensive equipment can be leased from the franchisor
  • Can be easier to finace a business if it is a franchise - banks are more willing to lend to people who want to buy a franchise from a well established franchisor rather than a start-up business.

Disadvantages

  • Have to pay the franchisor for the right to use the name
  • Have to pay the franchisor part of the profits
  • Have to run the business according to the franchisor's rules
  • Might be difficult to sell the franchise - has to be approved by the franchisor
  • Franchise could get a bad reputation if other franchisee's give bad customer service or sell bad quality products.

Evaluation

Overall it is less risk to the franchisee than setting up a new business and there is much more opportunity to expand.

Comments

musa575

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Its' been ten years, but i totally feel you on the gym hunt! I've been on the lookout for a while too. But here's the thing – I'm not exactly a fan of the traditional gym scene or those crazy intense workouts. And time is a bit of a luxury for me as well.

musa575

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That’s why it’s quite a challenge for me to find the appropriate place for fitness classes. So, I'm really on the hunt for alternative options that offer effective, short workouts that still keep me feeling healthy and good. If you've got any tips or unique class recommendations, I'm all ears!

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