What are some ways you would be able to find information about this?Are the lower risks of Franchise organizations worth giving up the freedom of ownership and control?
Actually a franchise is still ownership so you still have that risk but what you don't have is control.
The ownership risk is bigger in some ways becauuse rather than just buying premises and equipment you also have to invest in the cost of buying the franchise so your initial investment is higher.
There is also a certain risk in the lack of flexibility of a franchise, for example an owner operator of a burger bar can add pizza to his menu to diversify. A franchise holder cannot deviate from the corporate style and menu.
But the plus to a franchise is that you dont have to struggle for recognition or acceptance as a new business. If you have a McDonalds franchise your sales will be on the corporate style which has been tried, tested and proved over decades.
It is also easier to deal with supplies of a standard product from a single supplier and which lots of management assistance and training provided by the franchisor.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment