MGT 161 - Advantages and Disadvantages of Franchising and Entering into a Franchise Agreement

Less risk

Advantages of Franchising: 1

Training and support

Advantages of Franchising: 2

Brand recognition

Advantages of Franchising: 3

Easier access to funding

Advantages of Franchising: 4

Disadvantages of Franchising

Costs Lack of control Negative halo effect Growth challenges Restrictions on sale Poor execution

Costs

Disadvantages of Franchising: 1

Lack of control

Disadvantages of Franchising: 2

Negative halo effect

Disadvantages of Franchising: 3

Growth challenges

Disadvantages of Franchising: 4

Restrictions on sale

Disadvantages of Franchising: 5

Poor execution

Disadvantages of Franchising: 6

Terms and conditions

Entering into a franchise agreement: 1

Fees and other payments

Entering into a franchise agreement: 2

Training and support

Entering into a franchise agreement: 3

Specific Operation Requirements

Entering into a franchise agreement: 4

Conflict resolution

Entering into a franchise agreement: 5

Assigned territory

Entering into a franchise agreement: 6

Advantages of Franchising

Less risk Training and support Brand recognition Easier access to funding

Entering into a franchise agreement

Terms and conditions Fees and other payments Training and support Specific Operation Requirements Conflict resolution Assigned territory