For the individual owner, there are particular benefits to franchising, a few of which are discussed in the list below. Well-known trademark, either regionally or nationally, and its own cumulative goodwill – saving the business owner the price of creating and advertising a name that customers already recognize. Established business framework – reducing the startup problems and guesswork involved with starting a fresh business.
Well-tested resources of source and service – saving time and trouble to find suppliers of needed products and equipment. Ongoing marketing and sales assistance – franchisors have proven, existing, and successful systems of advertising. Financial assistance – banks and similar lending institutions are prepared to lend money to a business that has the backing of a successful franchisor. Most franchisors have direct financial assistance or help in finding adequate sources of financing. Reduced amount of risk – you are buying into a recognised concept so the risk of failure is lower. Ongoing research and development – most franchisors constantly research and look into essential information such as competition, product demand, seasonal variations, and community attitudes.
Site selection and business support – the franchisor helps with selecting a appropriate site location, building building design and supervision, worker training, and functional support. Proven operating methods and techniques for creating and offering the product. Standard quality, uniformity, and desirability of the franchisor’s product or service. Collective buying power and centralized purchasing system – franchises may have the ability to purchase products at a reduced cost because the franchisor can buy in bulk and pass the savings to the franchisees. Furthermore, with franchising growth normally appears to come more.
Operating an effective franchise may quickly lead to building a second and then a third business, and so on. In fact, some franchisees own all businesses of a specific franchise in an entire geographical area. Fortunes have been built this real way. However, despite the advantages to franchising, buying or starting a franchise business is not for everybody. A number of the disadvantages to franchising are discussed in the list below.
Loss of control and independence – since the franchisor’s standards have to be adhered to, a franchisee may have limited range for specific personal effort. Ongoing royalties could be as high as 10% (or even more) of revenues – this amount could determine whether you business is profitable or not. The initial franchise charge can be quite substantial.
Advertising fees – there is usually a fee to promote on a regional or nationwide basis. If the franchisor will not make the best use of your advertising dollars, this could be a waste of money. Required Signage – most franchisors have a developed indication package that the franchisee is required to purchase.
This can be very expensive for the small business owner. The franchisor’s problems are also your problems – for example, you might have a serious concern if there was a conflict between your franchisor and a significant supplier. In summary, despite the disadvantages of owning a franchise business, it generally offers real advantages with minimal risks over going it on your own considerably. All franchises are not created equal and research and homework should be achieved before starting or buying any franchise business. Franchising cannot assure a income. You, as the business owner, are ultimately responsible for the success or failure of the venture. Buy a Business or Sell a Business on GlobalBX.
- Also make good property insurance
- No snow
- Restrict the utmost quantity of portlets on a full page (max. 5)
- Cloud computing blurs vision
Not that I’m accusing you of anything like that. I’m terminated, aren’t I? Poochie, only more proactive. Meyers, Krusty and the network executive leave. OAKLEY: So, Poochie okay with everybody? An animator, who looks like David Silverman, pulls a sketch of a dog. MEYERS: No, no, no! He was supposed to have attitude.
MEYERS: Oh, you know, attitude, attitude! FEMALE EXECUTIVE: Can we put him in more of the “hip-hop” framework? KRUSTY: Forget framework, he’s gotta be considered a surfer. Give me a good shmear of surfer. Silverman redraws Poochie. They’re still not totally satisfied. I believe he requires a bit more attitude. Silverman blackens in Poochie’s sunglasses.
FEMALE EXECUTIVE: Ok last one, bingo. There it is, right there! KRUSTY: Yeah, that’s it! MEYERS: I love it! Morning The next, The Simpsons eat breakfast. Bart notices the headline in the newspapers Homer is reading: “Funny Dog TO CREATE Life Worthwhile”. COMIC BOOK GUY: Last night’s Itchy & Scratchy was, certainly, the worst event ever! Rest assured which i was on the web within minutes, registering my disgust across the world.