Sample Essay
The disadvantages of franchise business pertain to the costs which may be higher than expected. These costs include the initial cost of buying the franchise and the routine royalty which is paid to the franchisors. The franchisor also puts restriction on the franchise in terms of the quality standard which needs to be maintained, the policies that need to be established. In all basically how the business is run is determined by the franchisor. “The franchisor may have a great program and a respected name, but in the final analysis much of the risk is in your hands.”
(‘Advantages and Challenges of Franchising’, 2006, p28) Moreover the risk of franchisor going out of business affects the franchise businesses in a negative manner. The reduced risk, in terms of the risk being shared results in lower profits for the franchisor. Additionally the reputation of other franchises of the same company can affect the business as well.
These are model essays please place an order for custom essays, research papers, term papers, thesis, dissertation, case studies and book reports.
