Pros and Cons of Franchising ( for the Franchisee)

Question 1

Pros of franchising (for the franchisee)

Answer 1

• low risk idea as it proven and successful.
  You are already using a pre-existing brand name that customers are already familiar/loyal to. -> As a result generate revenue faster
• Support, advice and training from franchisor to be successful -> unlikely to fail

Question 2

Cons of franchising (for the franchisee)

Answer 2

• profits shared with franchisor. there is a legally binding contract that states what percentage of profit u gotta share
• Franchisee fee. Start up costs can be very expensive
• Less control & independence.Don’t get to make own decisions e.g products.They all have to be the same from the franchisor.

No creativity/freedom