Franchising Advantages

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In the modern world, franchising is the one of the easiest ways of starting a business. Franchising is an enterprise strategy for getting and holding customers. It is a system of marketing for making a vision in the minds of current and future clients about how the company 's goods and services can serve them. This is also a technique for distributing products and services that happy client needs. Shortly, franchising is an operational partnership between groups of individuals who have particular relationships and liabilities with a joint target to control markets to get and keep more customers than their opponents. This essay is going to talk about the positive aspects of franchising and why it is a great choice for entrepreneur with lack of…show more content…
Moreover, many franchisors give their franchisees a broad spectrum of point-of-sale advertising materials, starting from mobiles posters to brochures. Secondly, all franchisors provide their franchisees with a wide range of support in the areas of general operations and administrations. The businessman who becomes a franchise owner is immediately getting a proven products and systems of production, financial and accounting systems, inventory systems and human resources guidelines. Thirdly, by becoming a franchisee, a business immediately gets the collective buying power of all franchise system. Franchisees are usually capable to fill inventory needs at discount prices since they partnership with the franchisor, which generally has made arrangements to buy supplies at large-volume prices. This is an extremely great benefit because now the business has to compete with conglomerates, national chains, buying consortiums, and others. Lastly, Franchisee 's success is very important for its franchisor, that is why it is in franchiser 's best interests to do everything is possible to achieve it. As a result, the…show more content…
Thousands of new businesses start up every year, and many of them do not even make it through their first year. There a lot of reasons that businesses does not succeed all of the time. Firstly, bad management might be on of this reasons. There are many people with bag of experience behind that have started fresh businesses, but because of poor management choices their business did not succeed. Bad management may take different forms; one of these could be bad finances management which can damage a business and make it go down very rapidly. Sometimes a businessman is hiring people to run the business for him and not paying attention at all to what is going on, they think that they can just start a business and hire someone to let him run it properly, but mostly this is just tuning yourself up for failure. Lack of planning is another reason which might to fail a new business, some can say that it is cause of inexperience of a businessman and that could be true in some cases. For example, unsatisfactory business plan might seriously damage funding of the business at the start up, actuality to get a loan to launch a company practically all banks want to see a profitable business plan to make sure that they give out credits to the trustworthy person. Another main reason which may lead to bankruptcy is the location of a business, it may be crucial for anyone who starting a new business. In franchising system, franchiser is picking the place for establishing a business for his

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