|
Advantages:
- The business
know-how of the Franchisor is proven by at least one successful
pilot operation,
- The
Franchisor’s brand names may already be established,
- Training in
special and general business skills given,
- Administration
and management functions may be provided by the Franchisor,
- Advertising
support for the brand name and business,
- Support
during the start-up of the business, which may include assistance
with site selection, supply of equipment, assistance from
experienced staff during the launch period and selection and
purchase of stock,
- Detailed
Operations Manual covering most eventualities,
- Support and
guidance on running the business,
- Agreed area
of operation to avoid trading overlap within the franchise
network,
- Rights and
obligations clearly defined in a written contract,
- Commitment by
the Franchisor to maximise your development because his income
(through the ongoing fees) depends upon the continuing growth and
success of all franchise owners.
These
features should be fundamental to a franchise.
Disadvantages:
Let's look at
the minus points, too ..........
- While you own
the business, you can never be entirely your own boss. The
Franchisor will not permit changes to the business format and will
retain the right to intervene, or terminate, the licence to
maintain standards and stimulate progress.
You should
understand this fundamental point from the beginning if good
working relationships are to be created.
- It is not
always easy to evaluate a franchise, especially one that is new.
A thorough approach and investigation are recommended.
Particularly ominous signs are: no proven pilot operation, or
goods or services which look dated,
- Franchising,
like any small business, may call for long, unsociable hours, with
possibly an unacceptable impact on family life. Generally, small
business operators put in a fifty hour working week,
- Hidden costs
may appear - a thorough check of start-up and running costs should
reveal these.
|
|
|
