franchisng

  • 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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