Question

Many entrepreneurs decide to franchise instead of doing their

own thing from scratch. What are some pros and cons of franchising
- does franchising interest you or not and why?

Answer 1

Franchising is a business ownership model where an entrepreneur purchases the rights to start a business based on a model designed by the franchisor. It offers advantages such as established brand, support and training, and a proven business model. However, there are also disadvantages, including costs, limited independence, and profit sharing. Whether franchising is of interest depends on individual preferences and circumstances.

Step-by-step explanation:

Franchising is a business ownership model where an entrepreneur purchases the rights to start a business based on a model designed by the franchisor. There are several advantages of franchising:

1. Established Brand: Franchisees benefit from the reputation and brand recognition of the franchisor.
2. Support and Training: Franchisors often provide training, operational support, and supply chain assistance to help franchisees succeed.
3. Proven Business Model: Franchisees can rely on a tried and tested business model, reducing the risk of failure.

However, there are also disadvantages to consider:

• Costs: Franchisees usually need to pay franchise fees and ongoing royalties to the franchisor.
• Limited Independence: Franchisees must adhere to the franchisor's rules and guidelines, limiting their freedom to make independent business decisions.
• Profit Sharing: Franchisees typically share a portion of their profits with the franchisor.

Whether or not franchising is of interest depends on individual preferences and circumstances. Some entrepreneurs may prefer franchising because it offers a proven business model and support from the franchisor. Others may opt for starting their own business from scratch to have more control and independence.