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Franchise News - Article
01.06.2009
To create with franchising: advantages and disadvantages!
To create with franchising: advantages and disadvantages!
The founder of a franchised company receives the notoriety of a famous brand,
the know-how of the franchisor as well as a training period but…some company
makers do not like this formula which undermines their independence…
The
franchisee enjoy a permanent assistance during its exploitation, the franchisor
is constantly listening customers’ requires, new management or promotion
systems, etc.
Franchising offers more chances to succeed compare to lonely retailer. Nevertheless, franchising is not 100% sure: a franchise can be in liquidation even if the concept already proved it could work…This is another reason to be well-prepared to be a franchise that succeeded.
But there are also disadvantages. Most people think that the investment is
generally more important in franchising than it is for independent: it’s true
for the entry fee but it is not the most important. Locals and fitting of places
are more expensive because franchisors how much they are important. Their tips
and demands are expensive, this is the cost of the success.
The hardest
disadvantage to get and to accept is to follow rules that enable to the concept
to work well and to sale, sometimes exclusively, franchisor’s products and/or
services.
Dominique Deslandes for www.ac-franchise.com
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