Advantages of being a franchisee and constraints faced by independent entrepreneurs
Let’s look into various advantages of being a franchisee, which become even more apparent when one considers them against several difficulties faced by new and budding business persons struggling to establish themselves.
To begin with, let’s consider various constraints faced by independent entrepreneurs so that you can get a better idea of the advantages of opting to franchise. The independent entrepreneurs face following constraints:
Lack of adequate and proper market research is one of the major mistakes that independent entrepreneurs typically make owing to lack of proper guidance and direction.
In comparison to the ready expertise that is available to the franchisee, independent operators are needed to negotiate various tricky business terms on their own, and usually end up securing less attractive terms.
Some suppliers won't agree to deal with a new business entity or will flatly reject their business since the account or business scale is too small or risky for them.
Now, we shall consider advantages of being the franchisee.
New franchisees are able to avoid many common mistakes made by start-up entrepreneurs owing to the fact that the franchisor offers the franchisee an already perfected system through trial and error.
Perhaps most significant aspect of the arrangement is that you not only get support of a well-proven business model but also training and orientation in how to utilise it.
In addition to the benefit of leveraging an established brand name, taking up a franchise provides several other advantages, which aren't readily available to an entrepreneur looking to start a business right from scratch.