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Franchise Business के Advantages & Disadvantages |Benefits of Franchising to Franchisor & Franchisee



Advantages and Disadvantages of Franchising

If you’re looking to start a business, one of the considerations and questions you need to ask yourself is whether you want to start an independent business or a franchise. There are many advantages of franchising, as well as disadvantages—for both franchisees and franchisors.

When considering if you want to get involved with a franchise, you need to weigh all the benefits of franchising, but also all the potential risks you might face. In this guide, we’ll outline these pros and cons so you can decide if franchising is the right move for you.

Advantages of franchising for the franchisee
The franchisee is the third-party buyer who purchases the brand rights from the franchisor (the owner of the brand). The franchisee pays an initial franchise fee to the franchisor for the rights to use their brand in addition to ongoing franchise fees for marketing, royalties, and more.

1. Business assistance
2. Brand recognition
3. Lower failure rate
4. Buying power
5. Profits
6. Lower risk
7. Built-in customer base
8. Be your own boss

Disadvantages of franchising for the franchisee
While there are many advantages of franchising, it would be remiss to think there aren’t also disadvantages. Let us explain further.

1. Restricting regulations
2. Initial cost
3. Ongoing investment
4. Potential for conflict
5. Lack of financial privacy

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In this Video –
Franchise Business के Advantages & Disadvantages |Benefits of Franchising to Franchisor & Franchisee
Disadvantages of Franchising
Advantages of Franchising
Limitations of franchising in hindi

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