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Group Project 2

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Franchising is a method and marketing tool for companies that are looking to create an immediate income in an inexpensive manner. When you franchise you receive brand name recognition because the parent company has already established logos, slogans, and advertising. Franchising has low risk in overseas expansion because they are purchasing the rights to sell a product or service that already has a prestigious reputation.
Advantages - * Startup equipment and products are provided by the parent company. * You can receive training and advice from experts on staffing, quality control procedures, and operating hours. * Franchising can consistently provide quality products and services. Disadvantages- * There a monthly franchise fees that may affect the businesses income. * Strict rules that the parent company sets in place, such as dress codes, cleaning procedures, and quality control measures * May require you to purchase supplies from parent company only.
Franchise example would be Pizza Hut or McDonalds Joint venture is an agreement between two companies that are trying to make money on a business idea. Each partner puts money into the venture and takes on the responsibilities that they’re best qualified for. Partners share ideas that will enhance the business venture. These ideas and expertise are what drive the business.
Advantages-
* There are no strict rules or procedures to start the business. * You may buy from any supplier that you choose. * The income may be low in the beginning due to startup cost but will increase with no franchise fees to pay towards. * You can decide to franchise once you are established.
Disadvantages-
* A new business with new products will encounter problems establishing a reputation for their product or service. * There are no buybacks

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