What are the advantages and disadvantages of franchising?

Answer 1

The advantages of franchises include the following; Getting assistance from financial institutions Training of personnel Ability to access market research They are able to access standard stock control systems The disadvantages include; Franchisor may not renew the contract at the end of the term Buying a franchise requires payment Long decision-making processes Limited territory within which to operate

Answer 2

The common perceived disadvantage would be continuing royalty payments However, that is typically the revenue stream of the franchisor, which provides continuity of operations. The advantage of Franchising is that it provides a better access to capital, and if you never owned a business, provides a validatable model improving your chances of success