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[Solved] MGT211 GDB 1 Solution Spring 2021


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Question

How franchising could be disadvantageous for a franchisee? On which grounds it is beneficial for the franchisee?

Solution

How franchising could be disadvantageous for a franchisee?

How franchising could be beneficial for a franchisee?

1. Buying a franchise means ongoing sharing of profit with the franchisor.

 

1. Franchises often have an established reputation and image, proven management and work practices, access to national advertising and ongoing support.

 

 

2. Franchisors do not have to renew an agreement at the end of the franchise term.

 

2. You don't necessarily need business experience to run a franchise. Franchisors usually provide the training you need to operate their business model.

 

 

 

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