07. Advantages and disadvantages of franchises

AS A FRANCHISOR

Advantages

  1. Grow quickly

  2. Franchisee provides finance

  3. Francishees motivated → running own business

Disadvantages

  1. Lose some control

  2. Danger → 1 bad franchisee can ruin rep

  3. Share profits with franchisee

AS A FRANCHISEE

Advantages

  1. Buying into established brand

  2. Access to training + supplies + can learn from other franchisees

  3. Share marketing costs w/ franchisor

Disadvantages

  1. Share profits with franchisor

  2. Work within franchisor’s guidelines

  3. Contribute to group marketing