Business Action Group

Posts Tagged ‘Starts a business’

Acquiring a franchise is to obtain a license or right to operate a certain business, including its processes, logos, designs and brand involved.

Advantages:
* Starts a business that has already proved successful, and has a recognized brand.
* It has a manual with guidelines and procedures for creating and managing the business.
* Shall have training and technical assistance from the franchiser.
* Does not require much expertise in certain business issues.
* Saving time and money in designing a new business, and promote it.

Disadvantages:
* High acquisition cost.
* Constantly having to pay royalties.
* Limited to implement new ideas.
* The possibility of business reputation may be affected by the reputation of other businesses under the same franchise.
* The need to undergo permanent and constant control of the franchiser.