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Advantages: Easier loan approvals, thought out and often proven business plan, support from corporate, co-op advertising, brand name advantage etc...

Disadvantages: Royalty fees, binding agreement, higher up front cost

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Q: What is franchising and what are its advantages and disadvantages?
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When it comes to opening a new business, many look for franchises as a way to shortcut the business start-up time and cut down on failure opportunities. Franchises are often considered a safer investment because they offer a proven record of success. Some of the advantages of franchising include: · Established lower failure rate · Ongoing help with start-up process and beyond · Set buying power · Brand awareness · Franchises are highly profitable On the other hand, as with much other businesses, there are some disadvantages of franchising: · High initial investment · They have set rules · Ongoing cost · Competition


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