Topic > Advantages and disadvantages of franchising - 978

ADVANTAGES OF FRANCHISEA Franchising offers the advantage of operating under the banner of an already well-known company. The ideas, brand, operating methods and much more are already tried and tested and ready to be implemented again and again in a new location as each franchisee takes ownership. As for Hot and Roll, the percentage for the franchisee's success in the business is higher because Hot and Roll is already well known in the food and beverage industries. Consumers already recognize the product, logo and concept of fast food restaurants that serve healthy and tasty delicacies and hygienic food that everyone can enjoy anytime, anywhere. Operating with the excellence of a franchise allows the franchisee to take advantage of the previously established brand of the business. There will be less work to do in trying to establish and form the company's brand. It will already be known and appreciated by the market and therefore should produce a balanced flow of customers loyal to the brand. Adopting a franchise means having the advantage of the franchise brand and the advantages of a registered trademark. The old myth is that 95% of businesses fail within the first 5 years. The security offered by franchising may give the impression that the business will be less likely to fail. Another advantage of franchising is the fact that obtaining business financing is generally easier. Investors are much more willing to invest in a company with an established network, a protected brand and an effective support organization. In some cases, financing can be acquired by the franchisor, making life even easier for the new business. Hot and Roll offers low startup costs to new affiliates. It's because it's only... half the paper... the franchise agreement. As part of the ongoing franchise agreement, they will then pay ongoing fees for the support and training provided by the franchisor. In the long term, this means a limitation on the amount of profit an affiliate can make. The franchisor will expect a reduction in profit. Franchisees do all the hard work and still have to pay the franchisor for the privilege of using their brand and endorsement. When times are tough, this could mean a further reduction in already low profits and hardship for your business. Starting your own business will often be the best choice, as there will be fewer restrictions on how to run the business and more potential avenues for profit, without overheads.1. http://blog.thecompanywarehouse.co.uk/2010/10/04/advantages-and-disadvantages-of-a-franchise/2. http://hotandroll.com/franchise-oppertunity/