Advantages and disadvantages of franchising

Advantages and disadvantages of franchising
The primary advantages of franchising from the perspective of the franchisee are the provision of a recognizable consumer brand, tested product and service concepts, technical assistance in the areas of site selection, facility construction and interior design, training, marketing support, and financial controls. Franchisors often assist franchisee applicants in obtaining financing and/or lease agreements. Although all business models encompass a certain amount of risk, proven franchise concepts experience a considerably reduced level of failure. Given the extent of this support, even individuals without extensive experience in the hospitality industry can often acquire and successfully manage a franchise business. The primary disadvantages of franchising
from the perspective of the franchisee are that the franchisee must pay a royalty fee and must
comply with vigorous quality and control procedures established by the franchisor. Conflict
may arise between the franchisee and franchisor when territo.............