Franchising has evolved over the years with its growing popularity. People prefer buying a franchise as compared to starting an independent business because of its numerous benefits to the franchisee. With Owning a franchise gives an aspiring entrepreneur an opportunity to get associated with a renowned and successful business. However, being associated with a successful brand means sharing entire responsibility for the brand value. After owning a franchise it becomes franchisee’s responsibility to enhance, protect and promote the brand. The benefits of buying a franchise are too many, but the only condition is brand dilution does not take place in any condition.
Advantages of owning a franchise:-
Taking up a franchise business cannot guarantee success but it is more reliable and risk free as compared to starting one’s own business from a scratch. The advantages of buying franchise business are:
Established brand: A franchise is an already established brand. Franchisee therefore has the benefit of owning an already successful business and there is no need for him to work on the model and systems.
Less advertising cost: Franchisee enjoys the benefit of already popular brand and he is not required to spend some extra bucks on its promotion.
Successful business model: Franchisee gets the proven business tactics to make his franchisee business a success. So, there is no need for him to take any kind of business pressure especially during the initial phase.
Expertise of Franchisor: Franchisee benefits from the support and expertise of the franchisor and with time develop a good knowledge and experience in running a franchise business successfully.
Training: Another advantage of owning a franchise is the training and know how provided by the franchisor to the franchisees and to their staff initially as well after some period of time.
Disadvantages of buying a franchise:-
While there are so many advantages of owning a franchise, darker side of buying a franchise business can not be ignored.
Huge investment: Buying a franchise mean huge amount of investment in terms of franchise fee, infrastructure, planning, and operations. However in case of independent business a franchisee can plan his business as per his budget.
Lack of independence: Buying a franchise does not mean that you own a business independently. You are answerable to your franchisor for all your actions and activities.
Restriction for buying products or services: By owning a franchise, franchisee is restricted to buy products or services from places of his choice. He has to buy the products or services from franchisor even at higher rates than others.
No doubt buying a franchise has its advantages and disadvantages still it is a better option as compared to independent business. Also if you gel well with your franchisor and takes every possible effort to keep the brand free from dilution, the franchisor is more than happy to extend his unconditional support to you.
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