franchisng - Advantages and disadvantages table in GCSE Business Studies

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Created by: katiejw24
Created on: 11-05-17 12:04

franchisng

Advantages

expensive marketing costs are covered by the franchise
brand image and reputation is already established
access to tried and tested products ( products being sold are already successful)
established customer base
higher chance of survival
specific support and training is provided

Disadvantages

start up costs can be expensive
royalty payments are expensive depending on which franchise was bought intp
there is a complicated application process
there is a lack of authority and controll (franchisor has total control of the store)
limited flexability to make your own decisions

Evaluation

franchising is a great way for an entrepeneur to start up a business as it includes less risk due to the brand being bought into already being established and known about.

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