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What are the advantages and disadvantages of franchising as a form of business

User Arhak
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21 votes

Answer:

Step-by-step explanation:

Advantages


- Expansion can be faster because franchisees provide the labour and their sales provide the growth.

- Franchisees are responsible for their company’s success so they are more motivated

- Franchisees may be more talented at growing the business and turning a profit than employees would be


Disadvantages


- Franchisees cannot be managed as closely as employees and they may have different goals to the franchisor.

- Franchise recruitment can be slower and less efficient than employee recruitment

- Franchisors earn royalties from sales. Franchisees earn money from profits. Achieving growth in both isn’t always possible, potentially causing conflict


hope it helps:)

User Karel
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