ADVANTAGES TO FRANCHISEE, Lower costs as franchisor may do all training and advertising, Risk of failure is reduced as brand is already established/well known, Already have brand loyalty and an existing customer base, DISADVANTAGES TO FRANCHISEE, Can’t use own initiative as franchisor may dictate products, selling price etc, Have to give a percentage of profits to franchisor (a royalty fee), Costly to buy a franchise so high initial start up fees, ADVANTAGES TO THE FRANCHISOR , Cheap way of expanding market share – can gain increased brand presence, Provides them with a reliable revenue – receive royalties each year, DISADVANTAGES TO THE FRANCHISOR,  Reputation of business is dependent on each franchisee – can be tarnished by one poor franchise, Share of profits depends on the success of the franchisee.

Franchise

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