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Advantages and Disadvantages of Becoming a Franchisee

To get n control of a business may not require one to start a new business. In some situations you may have to get in control of a business when the original owner inherits you. Others may be saved the hustle of starting new enterprises through the purchase. Inheritance usually makes it very easy for most people to control the enterprises. A good number of people are not open to inheritance and would want to start over. Good relations are necessary for those who want to get into the business. Being a franchisee can have several advantages and disadvantages. The following paragraphs highlight the merits and demerits of being a franchisee.

The original capital that you may have to use for the enterprise may be meager. You only have to pay a small proportion of the total amount that you were to pay when you were starting from scratch. The savings can be channeled elsewhere.

Secondly, you may benefit from being a franchisee by being supported by the franchisors. Franchising companies may want you to continue performing at the same level as the enterprise used to be. They will, therefore, have to help you by giving you training and support any time that you may need it.

The other advantage of being franchisee is that it helps you to start with a well-established business model. Most of the things in the business are already planned for you. You get a business that is already on track. You will also get ready customers. You can easily predict how much you can get when running the business most effectively. The enterprise should have to get back to its normal ways of operation once you take over.

One disadvantage of being a franchisee is that you can be a risk to the brand. It is always not very easy handing over the enterprise to another. The franchisee may not be hardworking enough. Some may use the enterprise in a very wrong way. This will greatly affect the brand hence loss of customers of the enterprise.

The second demerit of being a franchisee is that you will have someone looking at you or supervising you most of the time. There are continuous inspections of the franchisees by the franchisors. At the same time franchisee may be very uncomfortable with the fact that someone is watching over them as they do their duties.

The last disadvantage of being a franchisee is that there are rules to be followed. Some rules are set down or the franchisees to follow. The rules may sometimes not be straightforward to follow.

Being a franchisee has a lot of merits and demerits associated with it like the ones that have been discussed above.

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