Positives and Negatives of Owning a Franchise (Essay Sample)

Positives and Negatives of Owning a Franchise Name Institution Course Instructor Date Positives and Negatives of Owning a Franchise A franchise is a profitable venture wherein a person or a group of individuals may become affiliated with an established and trademarked company model with a successful reputation in terms of human resource development, logistics, and technical support (Madanoglu, Castrogiovanni, & Kizildag, 2019). Starting a company on one's own is difficult since it requires industry analysis and monitoring. As a result, franchising businesses provide fantastic economic opportunities for these individuals, allowing them to become their own bosses. As a result, the danger of initial loss is reduced. The franchise industry has seen a boom in popularity in recent years. However, in the franchise sector, profitability is sometimes not assured. Therefore, it is critical to understand the benefits and drawbacks of having a franchise before making an optimal option. Positives One of the most appealing aspects of operating as a franchise is that no previous job experience is required. Furthermore, the franchise brand provides various services, including training to educate franchisees and aid them in understanding the business concept, as well as the provision of infrastructure, guidelines, and materials. Furthermore, by affiliating with the already established brand that has been in operation for a long time, the franchisee gains access to a wealth of expertise and vast insights. They also gain various business intimate details that would otherwise have to be discovered over time via experimentation if it were one's enterprise (Madanoglu et al., 2019). McDonald's is the ideal demonstration of a franchise company. If someone wishes to open their own McDonald's, they merely need to pay a fee to acquire the franchise's brand. Individuals can utilize the previously established brand instead of starting their firm from the ground up, which is more expensive and riskier (Weaven et al., 2018). It also means they spend less on promoting their enterprises. Negatives There are some drawbacks to starting a franchise firm. They include the hefty startup expenses with large franchises like McDonald's. In addition, the franchisee must use originality per McDonald's guidelines. Also, entrepreneurs have little control over the confidentiality of financial and monetary information (Madanoglu ...