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Human Rescuse

In: Business and Management

Submitted By joanna8668
Words 546
Pages 3
BA336 Human Factors in Small Businesses

Case study for
The Appeal of Franchising

Zhuo Xu
(7751)

Question 1:
From this case we can know franchisees also benefit from the franchisor’s business experience. In fact, experience is, in essence, what a franchisee buys from a franchisor. Franchising can be the ideal path to owning a business for people in almost any phase of professional life, whether they are retirees looking for a new direction and extra income or recent college graduates who are ready to embark on exciting careers. “Boosted by a brand name, training, advertising, and an established business plan, a franchise can ease the struggle and the risk of opening a business and still let you call some shots.

Question 2:
Investing in a franchise means that rather than staring your business entirely from scratch, you pay a franchise fee and often royalty fees for the right to operate under an established trade name. Franchising has increased significantly in the early 21st century, as more franchisors have used this approach to expand their businesses rather than opening more corporate stores. While beneficial because of the known entity factor, franchises do present some drawbacks for investors.
One difficult with a franchise is that you share some of your business success with the franchisor. Some franchisors charge one or the other, but some charge both. This means that even if you are successful, you may constantly be giving up a piece of the pie. Ongoing fees are generally based on shared benefit from marketing efforts of the franchisor.
Ironically, one drawback of investing in a franchise is the lack of control you have over decisions made that might tarnish the brand's image. Customers typically don't disassociate franchisees from the company brand. Thus, your business loses value in these situations even if you operate in an ethical,...

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