1. Business & Finance

Franchise

From , former About.com Guide

Franchises:



Purchasing a franchise is buying the right to use a name, product, concept and business plan. The franchisee will receive a proven business model from an established business.

Advantages:

All of the business operation processes have been established. The franchisee receives help from a network and customers may already familiar with the name. The marketing strategy has already been put in place. Most all of the risk associated with starting a retail business has been reduced.

Disadvantages:

Franchisees pay a fee, or royalty, based on sales each year. Startup costs relating to the franchise may be high. One of the biggest disadvantages of owning a franchise is the lack of flexibility and freedom.

Support:

Franchisors usually provide all the marketing, training and on-going support needed to run a successful business.

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