Advantages of franchise chain:

(1) Be able to use well-known trademarks, trade names (chain system names), logos and proprietary technologies owned by the headquarters to conduct business with less development investment.

(2) The business model provided by the headquarters has usually accumulated several years of successful experience. Therefore, franchise stores can be carried out smoothly according to standardization from opening to operation, which has higher success rate and less risk than independent operation.

(3) Even an inexperienced layman can carry out business and operation under the guidance and education of the headquarters.

(4) Be able to effectively use the popularity and image of the chain system and effectively realize the promotion plan.

(5) Be able to adapt to the changes in the social environment and change the business strategy (in different times, choose to join the headquarters that conforms to the trend of the times). For the headquarters, realize regional intensive management. And the success rate is improved.

(6) For franchisees, because they can get business guidance (know-how, accounting, taxation, law, etc. ) and assistance (new product development, supply guarantee, promotion, education and training, etc. ) From the headquarters, they don't need to consider market planning (advertising, commodity development, etc. ) and you can concentrate on doing business.

(7) Due to the unified distribution system, a large number of purchased goods can buy good quality goods at low prices, and the reduction of procurement cost brought by unified distribution far exceeds the amount of commission paid to the headquarters, which makes the headquarters and franchise stores pursue the efficiency of funds and talents, improve the capital turnover rate and realize efficient and good operation;

Disadvantages of franchising:

(1) has a strong sense of dependence on the headquarters and sometimes slackens management and sales.

(2) Because it adopts a standardized system, there is no room for franchisees to innovate unilaterally. It must be done according to the requirements of the headquarters. For franchise store owners, the freedom of operation is reduced and they are not allowed to operate at will.

(3) Compared with the interests of franchise stores, the interests of headquarters are usually preferred.

(4) Once there are bad franchisees in the chain system, it will ruin the reputation of the system and bring adverse effects to other franchisees.

(5) Most of the contract conditions are dominated by the headquarters, and there is little room for modification according to the conditions that volunteers want; Moreover, once the headquarters is weak, the franchise operation will also decline.

(6) Pay the joining fee and various expenses, and undertake the obligations of business transfer, non-competition and confidentiality.