What are the advantages and disadvantages of the franchise model?

1. The advantages of the franchise model are as follows:

1) The franchisor is able to maintain a small scale while exercising centralized control, which can earn reasonable profits without involving high capital risk, and does not have to take into account the daily chores of the franchisee.

2) Because the franchisee has a deeper understanding of the region to which it belongs, it is often easier to discover the business scope that the enterprise has not yet covered.

3) Since the franchisor does not need to participate in the staff management of the franchisee, there are relatively few staff problems that must be dealt with by itself.

4) The franchisor does not own the assets of the franchisee, and the responsibility for ensuring the safety of the assets falls entirely on the asset owner, and the franchisor does not have to bear the relevant responsibilities.

5) Franchisors engaged in manufacturing or wholesale can establish a distribution network with the help of franchising to ensure the market development of products.

2. The disadvantages of the franchise model are as follows:

1) It is precisely because of the franchise itself that the franchisee has obtained a complete and rigorous management system. However, because of this, it is difficult for franchisees to change this business model to adapt to various changes in the market and policies. In addition, due to the different needs of consumers in different regions, it is difficult for franchising to maintain a sustainable advantage anywhere.

2) For consumers, the frequent changes of franchisees bring them doubts, resulting in unclear responsibilities between franchisors, current franchisees and previous franchisees, and mutual shirking of responsibility.

3) Franchising can only focus on one area, and it is impossible to achieve strategic victories in various markets.

The advantages of franchising are mainly manifested in:

1. The franchisor can achieve centralized control, expand the scale and earn profits; Moreover, it can avoid the high capital risk of realizing the control of the enterprise, and can do "hands-off shopkeeper" without taking care of the daily operation of the enterprise.

2. By increasing the scale of franchise stores, the franchisor can extend its tentacles to all corners of the industry and develop a business that the enterprise has not yet involved, and the cost is almost zero.

3. The labor cost overwhelms the franchisee, and the franchisor does not participate in the franchisee's employee management, so there are relatively few employee problems to be dealt with.

Analysis of the disadvantages of the franchise model:

First, the disadvantages of commercial franchising to franchisors are mainly manifested as:

1. The risk that the franchisor's goodwill and brand value will be impacted in market competition;

2. The franchisor's strategic adjustment is greatly restricted by the commercial franchise contract, and there is less flexibility for timely adjustment, and many market opportunities are missed;

3. The innovation of the franchisor's headquarters is constrained, while the innovation of the franchisee is not restricted, and it is likely that the franchisor will cultivate peer competitors through franchising.

Second, the disadvantages of commercial franchising to the franchisee are mainly manifested as:

1. At the beginning of the business, you need to pay a lot of franchise fees;

2. Business activities are strictly regulated, and a lot of independent management rights are lost.

The franchise model also has the advantage of being a special supply for some special sectors that are specifically permitted. Right, there is priority in such words, two. And his disadvantage is that you can't use it for ordinary people, and you can't sell it.

The advantage is that it can be centrally controlled, and the scale is smaller, and the risk is relatively small. The disadvantage is that unification cannot have too much scale and profit.

The advantage is that it includes the necessary exploration process such as selecting profit points and opening markets, which reduces business risks, and the licensee can own his own company and control his own income and expenditure. The licensee's start-up costs are lower than those of other modes of operation, so the investment can be recouped and profitable in a relatively short period of time.

The advantage of the franchise model is unique, within the same area, there will be no other operators, the disadvantage is that the cost of investment at the beginning is relatively high, and the probability of return in the short term is not large!

The advantage is that the licensee can get the management and training of the franchise enterprise system, and the disadvantage is that there is no autonomy, subject to others, and very passive.

1.The advantages of the franchise model are as follows:

1) The franchisor can maintain a small scale while exercising centralized control, can make reasonable profits without involving high capital risk, and does not need to think about the franchisor's day-to-day chores.

2) Because the franchisee has a deeper understanding of the region, it is often easier to find the business scope that the enterprise has not yet set foot in.

3) Since the franchisor does not need to be involved in the management of the franchisee's employees, there are relatively few employee problems that must be dealt with by themselves.

4) The franchisor does not own the assets of the franchisee, and the responsibility for ensuring the safety of the company's assets falls entirely on the asset owner, so the franchisor does not have to bear socially related legal responsibilities through the franchisor.

2.The disadvantages of the franchise model are as follows:

1) It is precisely because of the franchise itself that the franchisee has obtained a sound and rigorous management system. But for this reason, it is difficult for franchisees to change this business model to adapt to various changes in the market and policies. In addition, the needs of different consumers in different countries and different countries of fish oil make it difficult for franchising to maintain a certain advantage anywhere.

2) For consumers, the frequent replacement of franchisees has brought them doubts, resulting in unclear responsibilities and mutual prevarication between franchisees, current franchisees, and former franchisees.

3) Franchising can only achieve strategic victories in one area, not every area.

1) Join a strong and reputable franchise enterprise, the investment risk is small, and you can get the financial help of the franchisor.

2) The licensee can get the management training and guidance of the franchise enterprise system.

3) You can enjoy various first-class activities such as large-scale advertising of franchise enterprises. The use of service marks, product marks, ownership, patents and designs of franchise enterprises that are familiar to the public is conducive to improving competitiveness.

4) Franchise enterprises concentrate on purchases, reduce costs, and ensure the supply of goods.

Disadvantages of the franchise model:

1) There is no autonomy in the way of operation, and it is subject to the franchisor, so that its growth is limited.

2) Pay expensive franchise fees, and the profits should be shared with the franchisor according to the agreement.

3) Must accept the unified supply of the franchise enterprise**.

4) If there is a problem with a franchise company, it will affect all enterprises.