Pro's and Con's
Some of the advantages of franchises are:
- the product name is already established;
- there is an immediate entry into the market;
- sharing the advertising/marketing expenses among a large number of fanchisees;
- often a lesser initial capital investment;
- readily available knowledge and market research about the product;
- an ability to compete with large companies;
- a potentially good alternative for entrepreneurs who want continuing guidance from experienced operators;
- operators are often highly motivated;
- innovative marketing techniques thrive in a franchise environment;
- combined purchasing powers.
Some of the disadvantages are:
- reliance on the expertise and assurances of the franchisor;
- complicated agreements to be understood before signing;
- some franchisors take a more serious position in relation to their ongoing responsibilities to franchisees than others.
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