Advantages of franchising model:
(1) Joining a franchise enterprise with strong strength and high reputation has low investment risk and can get financial help from the franchisor.
(2) The franchisee can receive management training and guidance from the franchise enterprise system.
(3) You can enjoy various promotional activities such as large-scale advertising of franchised enterprises. The use of service trademarks, product trademarks, ownership, patents and designs of franchised enterprises familiar to the public is conducive to improving competitiveness.
(4) Franchise enterprises concentrate on purchasing goods, reduce costs and ensure the supply of goods.
Disadvantages of franchising model:
(1) There is no autonomy in the mode of operation, and it is restricted by franchisees, which limits its growth.
(2) Pay the expensive franchise fee, and the profit shall be shared with the franchisor according to the agreement.
(3) The unified supply price of the franchised enterprise must be accepted.
(4) A franchise enterprise has problems, which will bring trouble to all enterprises.
Extended information:
Types of franchising:
(1) Monomer franchising: the franchisor gives the franchisee the right to open a franchise store in a certain place.
(2) regional development franchise: the franchisor gives the franchisee the right to open a specified number of franchise outlets in a specified area and at a specified time.
(3) Secondary franchise: also known as sub-franchise. The franchisor gives the franchisee the right to sell the franchise in the designated area. In this type, the franchisee has a dual identity, both as a franchisee and a sub-franchisee.
(4) agency franchise: the franchisor authorizes the franchisee to recruit franchisees. As an agency of the franchisor, the franchisee re-recruits the franchisee on behalf of the franchisor and provides guidance, training, consultation, supervision and support for the franchisee.
Baidu encyclopedia-franchising