Question
What are the benefits of franchising?
For example, if you were a small coffee/hot drinks provider. What benefits would you have by franchising with someone a hige as Starbucks? What would be the negatives?
9 months ago - 4 answers
Best Answer
Chosen by Asker
It gives people the opportunity without expereincve to set up in business (for a franchise fee) and be shown how/when/where/why so they can start trading efficiently/profitably from day 1. Disadvantage is you have to pay a continuing percentage franchise fee, even though you know "how to do it now". You usually have to exclusively buy supplies from the franchisor. One reason franchise's succeed is that they charge premium prices for their product which means they can afford the high rents for premium sites. So you could say the buying suckers are paying the price! It is a proven concept though!
by luludoodie
9 months ago
Asker's Rating: 
Other Answers
when a company has figured out how to run a successful business...supposedly, if you follow their plan, you will be a success, too. usually, they have all of the legal and marketing figured out. you will pay for the right to use their name and often royalty fees based on sales. the downside is that you may or may not be able to use your own creative ways since you usually need to conform to a franchise agreement
by Murzy- 9 months ago
The negatives of franchising is the lack of independence. I work with many business owners and that is a constant complaint. Bid Daddy Franchisor sets rules such as what signs are in the window and so on. The benefits are the marketing. But that is assumed in the franchise fee, usually about 7.5% or a bit higher. That is off of your gross receiots, by the way!
by 27ysq- 9 months ago
About benefits of franchising can be read in info-answer-free ...
by Huki H- 9 months ago