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प्रश्न
What are the disadvantages of franchising to the franchisee?
उत्तर
Disadvantages of franchising :
- Higher cost: Costs may be higher than expectations. The costs include initial costs of buying the franchise, you pay continuing management service fees and you may have to agree to buy products from the franchisor, this may be more than the expectations.
- Huge restrictions: The franchise agreement usually includes strong restrictions on how to run the business. Franchise might not be able to make changes to suit the local market.
- Risk: There is a risk that the franchisor might go out of business and in this case a huge risk is involved.
- Bad reputation: Other franchisees could give the brand a bad reputation, so the selection process needs to be perfect.
- No sale option: Franchise finds it difficult to sell to someone if willing to sell due to any reason. It can only be sold to someone approved by the franchisor.
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संबंधित प्रश्न
Who is a franchisor?
What is franchising?
Which is the most popular form of franchising?
Explain in brief the three ways in which an organisation can expand externally.
Enumerate the importance of franchising.
Explain the types of franchising.
Explain the advantages of franchising, both for the franchisor and franchisee.
Choose the Correct Answer.
A continuing relationship which provides licence privileges to do business and provides training, merchandising for consideration is called ______
Choose the Correct Answer.
A condition where a factor agrees to provide a complete set of services like financing, debt collection, consultancy is called ______
An organization carrying out activities to move goods from producer to consumer is ______.
Choose the Correct Answer.
The model that identifies alternatives, criteria for decision making and analyzes alternatives to arrive at the best choice is ______
State two disadvantages of franchising?
What are the types of franchising?
Enumerate the characteristics of franchising.
Assertion (A): In franchising there is usually a much higher likelihood of success when an individual opens a franchise as opposed to a mom-and-pop business.
Reason (R): It runs on a proven business formula that is already in place.
How is franchising a better option for external expansion in case of start-ups?
