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Advantages and Disadvantages of Franchising


Some of the Advantages and Disadvantages of Franchising for business are given below. So let us check it out some of the advantages and disadvantages to know more about Franchise company which are discussed one by one:

Some of the Advantages of Franchising are:

  1. Franchise is an agreement between two independent parties to use firm's business legally.
  2. Franchise is also a kind of marketing which allows to grow company.
  3. Franchise is a good opportunity to start e commerce or related business oportunities.
  4. Franchise information allows trader to start a small business.
  5. The main benefit of franchise is that trader do not have to start a business from scratch.  
  6. Franchise is easy and safe to invest money for a business.
  7. Franchise is a type of commercial organization.
  8. Franchise allows you to use brand name of an organization.
  9. To start Franchise no prior experience is required.
  10. Franchise with little training you can start earning revenue immediately.
  11. Franchise based on the reputation of the company the sales can go higher.
  12. Franchise allows to use exclusive rights in your territory to grow business.
  13. Franchise is a good opportunity for international business.
  14. Restaurants and hotels often starts franchise to grow their business.

Some of the Disadvantages of Franchising are:

  1. Franchise has the agreement includes some restrictions on how to run a business.
  2. In Franchise you have to share all profits or a percentage of shares, with the fanchisor.
  3. Franchise trader cannot change the services of process in order to grow business.
  4. The cost of Franchise may be higher for a business.