Advantages and Disadvantages of Becoming a Franchisee
Sometimes you may not have to start over when you want to be in charge of an enterprise. In some situations you may have to get in control of a business when the original owner inherits you. Buying is also another way that can be used to get into the business without starting again, this franchise. It is always very easy to get in control of an enterprise through inheritance since not much is needed. A good number of people are not open to inheritance and would want to start over. Getting into the business may force many people to forge good relations with the franchisors. Various merits and demerits can apply to the franchisees. In this article, you will learn about the benefits and the limitations of being a franchisee.
One advantage of being a franchisee is that you are exposed to the less initial capital. You only have to pay a small proportion of the total amount that you were to pay when you were starting from scratch. The reduced costs can make it possible for you to invest in other areas.
The franchiser may offer training and support to the franchisees, and this may be very beneficial to them. 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. Most of the things in the business are already planned for you. The business will be swiftly moving. You are also going to inherit customers. This help you to be in a position to know the profits that your enterprise is supposed to have. You are therefore expected to work very hard to maintain everything that you had inherited in the enterprise.
One disadvantage of being a franchisee is that you can be a risk to the brand. It is always not very easy handing over the enterprise to another. The franchisee may at some point not be very prepared to take care of the enterprise. At some point they may mismanage the enterprise. This will greatly affect the brand hence loss of customers of the enterprise.
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. At the same time franchisee may be very uncomfortable with the fact that someone is watching over them as they do their duties.
Being franchise may have the limitation of having to follow the rules. The franchisors always come up with set rules that should govern the activities of the franchisees. Some may fail to follow such rules.
There are a lot of benefits and limitations of being a franchisee.
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