People are complicated and flawed. Root for their better angels. Expertise is always relative. Every saint has a past and every sinner has a future, as Oscar Wilde said.
August 14, by Adrian Rather than carrying out a company formation to start a new limited company, people often buy into an established franchise to get started in business. But what are the advantages and disadvantages of a Franchise business essay Advantages of a Franchise As a business structure, a franchise can certainly be an appealing option.
With a number of advantages, it is often the choice of those looking to start a new business without the risks associated with going out on their own.
An Established Business A franchise offers the advantage of operating under the banner of an already established business. The ideas, the brand, the operating techniques and much more are already tried and tested and in place ready to be implemented again and again at a new location as each franchisee takes up the mantle.
A Known Brand Operating under the banner of a franchise allows a franchisee to take advantage of the previously established brand of the business. This means there will in theory be far less work and cost involved in trying to establish and build on the brand of the business.
It will already be known and trusted by the market and therefore should produced a steady stream of brand-loyal customers. Adopting a franchise means the advantage of the franchises trademark and the benefits of a registered trademark.
Simpler Business Financing Yet another advantage of franchises is the fact that acquiring business finance is generally easier. Investors are far more willing to invest in a business with an established network, secure brand and effective support structure.
In some instances, finance may be acquired from the franchisor, making life even simpler for the new business. Business Relationships The franchisee can also take advantage of the numerous business relationships already established by the franchisor.
In all likelihood, relationships with suppliers and perhaps distributors will already be in place and easy to manage. The advantages of already established relationships with advertisers and marketing teams may also be of benefit to the new business start-up.
Support and Security Franchises offer the advantage of a support and security system. Often franchisors will offer training schemes and support with things like the management of accounts, sales, advertising and more. These sorts of things may well be included in the price of the franchise fee.
The security offered by the franchise can give the impression that the business will be less likely to fail.
People often think that another advantage of starting a franchise is that they will make more money. The fees that a franchisee pays to the franchisor often means a big cut in profit and due to the limits imposed by the rules of the franchise it is often less easy to invest the profits in a tax-efficient way as you could by forming a new limited company.
A franchisee might benefit from higher profits in the beginning, but in the long term, they will often find that starting their own business would have been more profitable. Disadvantages of a Franchise Just as with any business model, there are disadvantages to setting up a franchise. Quite often people are under the mistaken belief that the advantages outweigh the disadvantages, but this is because they are commonly blinded by the potential risks of starting a new business from scratch.
The formalities of setting up a limited company under which the franchise operates will be the same as if you were starting your own business. No Control The first and most significant disadvantage of a franchise is the fact that the franchisee has no control of the business or how it is run or very limited control.
The rules of the business are already established and part of the franchise agreement. How the business operates is set out by the brand of the franchise and it is very rare that a new franchisee will be able to operate outside of these borders.
Finding the cheapest suppliers to minimise your overheads and maximise your profits. You will be tied to the suppliers dictated to you by the franchise agreement.years of working with Reid as co-author and Chief of Staff.
Here are some lessons I learned about business and life from an amazing man.
The franchise is a business that is individually owned but it is licensed to operate under the umbrella of a major corporation, as Henry Cheeseman states in chapter 40 of his book Business Law, a franchise is a separate corporation from a corporation. Grant funding isn't just for nonprofits.
Startups can also secure grant money. Finding a good match is the hard part. Here are some ideas for launching your search. Published: Thu, 20 Apr “Buying a Franchise offers many benefits over starting a business on your own.
The franchisees benefit from the training and ongoing support that they receive whilst trying to make their business successful. A franchise is?°a form of business organization in which a firm which already has a successful product or service (the franchisor) enters into a continuing contractual relationship with other businesses (franchisees) operating under the franchisor's trade name and usually with the franchisor's guidance, in exchange for a fee.
Introduction Buying into a franchise business is a very serious decision for any business person. When you buy into a franchise you can pretty much be guaranteed that the goods and services you are selling will have almost instant recognition.