Sample Essay
There are certain weaknesses which are inherent in the franchise business for Paul. These weaknesses pertain to the customer expectations and the delivery of product and services by the franchise. The performance and reputation of other franchises of the franchisor determine in the reputation and success of Paul’s franchise. Therefore any fall in the product or service quality standards at other franchises would effect the reputation and the traffic of Paul’s franchise in a negative manner.
“Some prospective franchisees have unrealistic expectations concerning the income they will earn from their business. If unmet these unmet expectations can cause the franchisee financial problems and make them regret the investment they made. While unmet expectations are a weakness inherent in franchising, it is also a weakness of every business whether franchised or independent.” (Seid, 2004)
Other weakness of Paul’s franchise pertains to risk borne by the franchise in terms of the estimation of the expenses of the company.
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