Advantages and Disadvantages of Franchising

Advantages and Disadvantages of Franchising

Advantages and Disadvantages of Franchising Starting a new business is not an easy task; it requires a lot of hard work, planning and execution besides good investment. Due to these reasons, the concept of Franchise has made its place in the market because it makes your job easy as you don’t have to work that hard as compared to a normal start-up. By signing up with a franchise you will comparatively face lesser challenges i.e. why Franchise business is nowadays booming in the country. Like every other normal business, Franchise business too has its pros and cons. Here are some of the Advantages and Disadvantages of Franchising business:

Advantages of Franchise Business:

By starting a franchise business, you don’t have to worry about creating brand awareness as it already is an established brand. It also has a good base of customers already thus; you don’t have to worry much about attracting customers or doing marketing for it because the Franchise itself will do its marketing.

Disadvantages of Franchise Business:

The disadvantages include one cannot formulate its own policies for sales as you have to adhere to the policies of the Franchise. Moreover, the initial costs would be more as compared to a small start up. It also depends whether the brand has a marketplace in your city or not.