What are the advantages and disadvantages of franchising entrepreneurship
Disadvantages of the franchise business model: 1, the first to be regulated by the headquarters: the degree of freedom is relatively low compared to the independent shopkeeper. To talk about the chain will require consistency, through the control, so that it looks the same for each store, systematic and standardized. In other words, the franchisee must be in accordance with the headquarters of the planning to do, can not have too much sense of autonomy, do what they want to do. Because if each store has its own ideas, to buy different goods, do different decoration, then in the end will be messed up. 2, must be paid to the headquarters of a fee: headquarters of its brand authorization out of its know-how transfer out, and help the franchise to do a lot of logistical support counseling, of course, you have to pay it a fee, after all, the world has no lunch for nothing, and you pay the cost will include: joining the gold, the rights of the gold, the deposit.... ...and so on. Advantages: 1, has the brand awareness: in the choice of a chain of stores, it will be able to naturally hang its sign, and hang its sign after the brand awareness will naturally be higher than the independent store, the higher the visibility of the natural customers will be easy to come to the door, because they are familiar with the chain system of store name has been. At present, many of the brand awareness is advertised if the individual store naturally can not invest in so much advertising, of course, the visibility is relatively poor. McDonald's has so many stores all over the province that they can be seen everywhere, so of course their popularity will naturally rise. If you often promote new products through advertising, naturally its business will be better and better. 2, reduce the risk of failure: join the business can reduce your risk of failure, and improve the chances of success. No one dares to guarantee that the franchise will be able to have 100% success, but compared with the individual entrepreneurship, or a little higher, because basically the headquarters of the franchise has a certain store know-how, it can copy this model to you, as long as you follow to do, the chances of success will be naturally higher. If you do not choose to join, unless the industry itself has been very familiar with, otherwise you need to slowly grope, and grope is to try, try to be wrong, the error is the cost, so the chances of failure with the joining is higher than up. 3, logistical support counseling and commodity development by the headquarters to be responsible for: by the headquarters to provide logistics and commodities to the franchise, and the franchise is only responsible for store operations and store management on the good. Otherwise, if you do it yourself, you and manage the store and make marketing, promotion, research and development and management system, etc., may not be able to do so well. Especially the chain of franchises of goods will often continue to innovate, and can grasp the first-hand information on the market. Moreover, many of the goods are not the franchisee's own research and development, but outside the supply manufacturers to help it out. Because the supply manufacturers also like to promote new goods through the chain stores, because a negotiation can push a hundred, if a single store to talk about one to see how long to talk about? How much time and energy to spend? So of course, the channel operators also like to look for chain stores, so that the chain stores can get hold of new product information. Of course, this also includes machinery and equipment. Because when equipment manufacturers have new equipment developed, or the introduction of new foreign machinery and equipment, based on the same reason, the same will first look for headquarters. When the headquarters feel good, will naturally be introduced to the franchise, so the competitiveness of the franchise will be relatively strong. Franchise entrepreneurial risk is relatively small, so win the favor of many entrepreneurs, but we also need to recognize the advantages and disadvantages of this model, in order to avoid the shortcomings of the strengths of the future, to achieve better success.