Advantages and disadvantages of franchising Essay

Franchising has exhibited dramatic growth since it offers some significant advantages when comp bed to other distribution methods. When start a melody or venturing into entrepreneurship, it is imperative for one to consider totally options. One of the most suitable ways of achieving such an objective is to steal into a franchise. Business are able to expand by franchising in order to gain access to external groovy that can pedigree growth of new outlets or stores that are run by pull and profit driven franchisees extension Fra12 l 1033 (Frazer, Merrilees, & W mighty, 2012). These franchisees are more apt(predicate) to be focused and diligent than employed staff. Therefore, Franchising allows individuals to arrive their own boss. For lot who want to apply franchising in the Chinese securities industry, they whitethorn wish heaviness all options.Franchising is one the best solution for transitioning from employment to a business owner. There are several businessmen and bus inesswomen who have thrived and successfully modify their financial lives through franchising. Venturing into franchising has its benefits and also some drawbacks. Besides the startup bang-up required to become a franchisee, there is little planning and panorama that is required when setting up the new business. The new store or outlet has to conform to the image that the franchisor has already set up. Small expound such as the color scheme, to the inventory items to be placed on the menu or on the shelves, are all determined by the franchisor. This arrangement makes is easier for the franchisee to set up the business and increases the chances of success CITATION Hun11 l 1033 (Hunter, 2011).Most franchisors give the franchisee detailed training in order to delay that they develop the required level of expertise to achieve profitability. This allows the franchisee to have a piece of minds knowing that the company is steering the business in the right direction. One does non hav e to develop an advertising strategy or solid branding as this is done by the franchisor.Although franchising might be perceived as an ideal solution by some individuals, others refer throwbacks of the business model. Therefore, they prefer multi-level marketing or network marketing, which allows one to become a distributor of a product of and established and a prestigious company. This allows one to leverage on the advantages of being a franchisee whilst overcoming some of the disadvantages associated with it CITATION Hun11 l 1033 (Hunter, 2011).Firstly, multilevel marketing or network marketing products normally have a good level of branding in that, consumers are able to recognize the product that is offered to them. Although franchisees also have this advantage, they do not have the freedom to come up with unique structures when it comes to the distribution business. profit marking will, therefore, allow one to have free reign to market their business in whichever way they li ke CITATION Fra12 l 1033 (Frazer, Merrilees, & Wright, 2012). other advantage that network marketing has over franchising is that little startup capital is required to become a distributor. One is only required to grant a little amount of money to join a network, duration some networks require annual fees CITATION Hun11 l 1033 (Hunter, 2011). Additionally, one may be required to purchase the product in advance so that it can be delivered to the customers as the sales are made. All in all, the total amount of money required to run a paid network is far less than what is required when one is a franchise.ReferencesBIBLIOGRAPHY Frazer, L., Merrilees, B., & Wright, O. (2012). force and control in the franchise network An investigation of ex-franchisees and brand piracy. ledger of Marketing Management, 11-29.Hunter, R. (2011). MASTER FRANCHISING AS AN ENTRY STRATEGY MARKETING AND profound IMPLICATIONS. The Coastal Business Journal, 16-27.Source document