Franchising has certainly become a key component of the U.S. economy. What are the major advantages and disadvantages of franchising?
Advantages and disadvantages of franchising
The main advantage that I think franchising has is the possibility to expand a brand beyond regional and cultural boundaries. The people who buy a franchise can benefit from the extensive experience of the owners of the franchise. This will enable people with little business experience to run a successful business.
On the other hand, it does have its disadvantages. For example, when you own a franchise, you don’t have full control on the business and have to abide by some of the guidelines set by the franchise owner. In other words, there may be less room to be creative with a franchise when it comes to the application of different business strategies.