I received an email this past week from Diana F. who asked about business opportunities in franchising. Specifically, she wanted to evaluate various franchise opportunities to see if any suited her and her husband. This is an excellent topic for this week’s Bontis on Business. Thanks Diana.
A franchising relationship has two parties: the franchisee (in this case, Diana and her husband) who has the right to operate a location of a business, and the franchisor which represents the overarching company. There are several advantages and disadvantages for both the franchisee and the franchisor to consider.
Most importantly, the biggest advantage for the franchisee is that she avoids unnecessary trial and error when starting a venture, because the business model has theoretically already been proven to work. Technically speaking, the franchisee also has less financial and operational risk because startup costs are relatively lower, especially with a turn-key unit. Read full post.