The Positive and Negative of Owing a Franchise (Essay Sample)

The Positive and Negative of Owing a Franchise

The word “franchising” originates in Europe and refers to granting someone ownership rights to a business enterprise. In most cases, franchising is done by an individual or company rather than a government. Nevertheless, it may be possible to have the right to own a franchise without registering as an actual subsidiary of any big company. To become one, you only need to show that such an organization sells products like those produced by your firm. Most franchises grant exclusive rights to specific geographical areas of operation and require a fee for this service from both parties. This essay will look at the pros and cons of having a franchise. Even though some people do not like being part owners of businesses they have invested in, it has several advantages. It allows you to build long-term relationships with potential customers, connect with new entrepreneurs, learn about the marketplace, and enhance sales. However, there are also considerable drawbacks if you plan to apply for a franchise. In the short term, it can be difficult to start the entire process again, especially if you were unable to launch your first company. There are no guarantees that franchising will yield desired results, and you could lose control over your company when you leave it. Franchises usually have strict guidelines, and failure to follow them may result in the termination of all agreements between owners and franchisees.
Additionally, it can be more expensive to operate from home than operating your own business since costs like license fees, advertising materials, employee wages, etc., are associated with starting a new venture. However, these disadvantages are overshadowed by the numerous benefits of having a franchise. You can establish close ties with other brands and their partners and develop strong personal connections with consumers. These connections can help you improve product quality and marketing techniques, increase sales and expand geographically. Further, a franchise presents several opportunities for growth because it gives you access to many talented professionals.