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Discuss the advantages and disadvantages of franchising for the

franchisee. Would you consider becoming a franchisee? Why or Why
not?

User RuudKok
by
8.5k points

1 Answer

5 votes

Final answer:

Franchising for the franchisee has advantages like access to a proven business model and support, but it also has disadvantages like high upfront costs and limited flexibility. Whether to become a franchisee depends on individual preferences and the importance of factors like brand name and independence.

Step-by-step explanation:

Advantages of franchising for the franchisee:

  • Access to a proven business model and brand name
  • Training and support from the franchisor
  • Established supply chain and marketing strategies
  • Lower risk compared to starting a business from scratch

Disadvantages of franchising for the franchisee:

  • High upfront costs, including franchise fees and continuous royalties
  • Limited flexibility in decision-making and operations
  • Potential conflict with the franchisor on certain business aspects
  • Dependency on the franchisor's success and reputation

Whether or not to become a franchisee depends on various factors and individual preferences. Some people may prefer the advantages of franchising, such as having a well-established brand and support, while others may value more independence and flexibility that comes with starting their own business.

User Alvin Dizon
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8.3k points