Advantages and disadvantages of franchising Essay

Franchising has exhibited dramatic growth since it offers some significant advantages when compared to other(a) distribution methods. When starting a cable or venturing into entrepreneurship, it is imperative for ace to consider all options. maven of the most suit able ways of achieving such an accusatory is to buy into a licence. Business are able to expand by franchising in order to arrive at access to external capital that can descent growth of bleak outlets or stores that are give by committed and profit driven franchisees quotation Fra12 l 1033 (Frazer, Merrilees, & Wright, 2012). These franchisees are more likely to be focused and diligent than employed staff. Therefore, Franchising allows individuals to create their sustain boss. For people who want to apply franchising in the Chinese market, they may wish weight all options.Franchising is whiz the best dissolver for transitioning from employment to a condescension owner. There are several handicraftmen and bu sinesswomen who dedicate thrived and successfully transformed their financial lives through franchising. Venturing into franchising has its benefits and in like manner some drawbacks. Besides the startup capital mandatory to generate a franchisee, there is little formulation and thought that is needful when setting up the new business. The new store or outlet has to adjust to the image that the franchisor has already set up. Small flesh out 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 correspondence makes is easier for the franchisee to set up the business and increases the chances of success mention Hun11 l 1033 (Hunter, 2011).Most franchisors give the franchisee detailed prep in order to ensure that they develop the required aim of expertise to achieve profitability. This allows the franchisee to father a piece of minds knowing that the company is steering the business in the righ t direction. One does not have to develop an advertising strategy or loyal branding as this is d wizard by the franchisor.Although franchising index be perceived as an ideal solution by some individuals, others cite throwbacks of the business model. Therefore, they like multi-level selling or network marketing, which allows one to become a distributor of a product of and complete and a reputable 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 usually have a good level of branding in that, consumers are able to get along the product that is offered to them. Although franchisees also have this advantage, they do not have the freedom to come up with unique(p) structures when it comes to the distribution business. Network marking will, therefore, allow one to have free reign to market their bu siness in whichever way they like CITATION Fra12 l 1033 (Frazer, Merrilees, & Wright, 2012).Another advantage that network marketing has over franchising is that little startup capital is required to become a distributor. One is only required to relent a little inwardness of money to tie a network, while some networks require annual fees CITATION Hun11 l 1033 (Hunter, 2011). Additionally, one may be required to purchase the product in farm so that it can be delivered to the customers as the gross sales are made. All in all, the total amount of money required to run a bankable network is far less than what is required when one is a franchise.ReferencesBIBLIOGRAPHY Frazer, L., Merrilees, B., & Wright, O. (2012). Power and control in the franchise network An investigation of ex-franchisees and brand piracy. Journal of selling Management, 11-29.Hunter, R. (2011). MASTER FRANCHISING AS AN ENTRY STRATEGY selling AND LEGAL IMPLICATIONS. The Coastal Business Journal, 16-27.Source schedule