Advantages and Disadvantages of Becoming a Franchisee
To get n control of a business may not require one to start a new business. Some people may get to control the business through inheritance. Buying is also another way that can be used to get into the business without starting again, this franchise. Inheritance usually makes it very easy for most people to control the enterprises. 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. This article looks at the advantages and disadvantages that can be achieved by a franchisee.
The original capital that you may have to use for the enterprise may be meager. This amount is very much reduced when compared to the capital that one can use when it starts a business from zero. The savings can be channeled elsewhere.
Secondly, you may benefit from being a franchisee by being supported by the franchisors. Most of the franchising companies would want to maintain their levels of operations as it had been normal. The franchisors will give every new franchisee support and training.
The other advantage of being franchisee is that it helps you to start with a well-established business model. The enterprise will already be moving when you get it. The business will be swiftly moving. The customers will be passed on to the franchise. You will, therefore, have an estimate of the rewards that the business is going to make. The enterprise should have to get back to its normal ways of operation once you take over.
Most of the franchisees my risk the brand, this being one demerit of being a franchisee. 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. There can be loss of customers of the enterprise.
Secondly, the franchisees are inspected most of the time by the franchisors. The franchisors will have to inspect how you are doing so often. Not all the franchisee are open to the idea that someone inspecting their performance.
Following set out rules may also be another disadvantage that is associated with being a franchise. The franchisors always come up with set rules that should govern the activities of the franchisees. The rules may sometimes not be straightforward to follow.
There are a lot of benefits and limitations of being a franchisee.
Cited reference: go