MGT211 GDB Solution spring 2021 PDF Word File

MGT211 GDB Solution

Question

How franchising could be disadvantageous for a franchisee? On which grounds it is beneficial for the franchisee?

How franchising could be disadvantageous for a franchisee?	How franchising could be beneficial for a franchisee?
1.      Buying a franchise means entering into a formal agreement with your franchisor.	1.        Franchises offer the independence of small business ownership supported by the benefits of a big business network.
2.      Franchise agreements dictate how you run the business, so there may be little room for creativity.	2.        You don't necessarily need business experience to run a franchise. Franchisors usually provide the training you need to operate their business model
3.      There are usually restrictions on where you operate, the products you sell and the suppliers you use.	3.      Franchises have a higher rate of success than start-up businesses
4.      Bad performances by other franchisees may affect your franchise's reputation.	4.      You may find it easier to secure finance for a franchise. It may cost less to buy a franchise than start your own business of the same type.
5.Buying a franchise means ongoing sharing of profit with the franchisor.	5.      Franchises often have an established reputation and image, proven management and work practices, access to national advertising and ongoing support.

 

 

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