06. June 2019 · Comments Off on Learning The “Secrets” of · Categories: Sports & Athletics

Advantages and Disadvantages of Becoming a Franchisee

To get n control of a business may not require one to start a new business. Some people may get to control the business through inheritance. Others may be saved the hustle of starting new enterprises through the purchase. Inheritance usually makes it very easy for most people to control the enterprises. Most people would want to establish themselves in the market and not being awarded enterprises as an inheritance. To break into the industry you need to relate well with those who are in the business already. Various merits and demerits can apply to the franchisees. The following paragraphs highlight the merits and demerits of being a franchisee.

The first advantage of being a franchisee is that you will start your operations with very little capital. This amount is very much reduced when compared to the capital that one can use when it starts a business from zero. The savings can be channeled elsewhere.

The second benefit of being a franchisee is that there are continuous help and support that you may get. Most of the franchising companies would want to maintain their levels of operations as it had been normal. They try to maintain the standards by offering training and support to the franchisees.

A franchise will start the options with an already running business. The enterprise will already be moving when you get it. The business will be swiftly moving. You will also get ready customers. This help you to be in a position to know the profits that your enterprise is supposed to have. You have to make all the bet that you want to give the same profits as the enterprise before you took over.

One disadvantage of being a franchisee is that you can be a risk to the brand. The process of inheritance cannot be easy at times. The franchisee may not be hardworking enough. At some point they may mismanage the enterprise. The customers may at some [point decide not to do business with the enterprise because of the poor management.

The second demerit of being a franchisee is that you will have someone looking at you or supervising you most of the time. There are continuous inspections of the franchisees by the franchisors. Not all the franchisee are open to the idea that someone inspecting their performance.

Following set out rules may also be another disadvantage that is associated with being a franchise. The franchisors may set out rules that the franchisees are expected to follow. Some may not follow the rules that are laid down.

Being a franchisee has a lot of merits and demerits associated with it like the ones that have been discussed above.

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