Question

What are the primary advantages to owning a franchise?

Answer 1

There are several benefits and advantage of owning a franchise, but the most important one is that you are your own boss. If you are a entrepreneur and don't wish to work for someone else anymore, then a franchise is a good choice.

Other benefits include:

• You don't need experience in that specific industry, when you purchase a franchise you acquire the franchiser's know-how.
• Franchises have a large customer base and brand recognition. Imagine you are Mexico City and you have to choose between eating at Burger King or "El Rey del Burger".
• Having a large customer base and brand recognition also comes with a lower business risk. Franchises are safer investments than new companies. Besides you have all the know-how and experience of hundreds or thousands of similar businesses.
• Many times you can lower your costs because franchises have a large collective buying power. Imagine how much it would cost a local restaurant to purchase the same toys McDonald's gives in its happy meals.

Answer 2

Step-by-step explanation:

Owning a franchise has the following main advantages:

1) A franchise owner gets valuable help throughout the lifespan of the business. Upon acquiring a franchise, the business owner receives a continuous training and assistance necessary for marketing and management.

2) Owning a franchise comes with a low rate of failure. A franchise comes with an established business concept that is already successful in the market which assures the owner of better chances of success compared to starting up an independent business.