Introduction to Business Topic Discussion
Question
How franchising could be disadvantageous for a franchisee? On which grounds it is beneficial for the franchisee?
SOLUTION:
What is Franchising
An Agreement between two-party and one party passes the right to another party.
Franchising is another type of buying a business.
Let’s take and under with an example
KFC restaurant to allow our partner to open branch and use the name for the business and pay according to an agreement.
Franchising could be disadvantageous for a franchisee
1) It contains a high cost of service and charges
2) In franchisee they are two many restrictions, that allow not to contain this act.
3) Franchisee along pay very high amount every year to the franchiser.
Benefit for the franchisee
1) Franchisee has a much low failure rate than other businesses because they themselves a very successful business.
2) Franchiser provides full support and facility to the franchisee.
3) They can choose the location of the business where they suitable and better for us.
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