Share
Explore BrainMass

Franchisee Pros and Cons

Would you help me to answer the following questions?

1. Being a franchiser seems to be a mechanism for growth, but what are the growth prospects for entrepreneurs who are franchisees?

2. Discuss whether or not the entrepreneur is limited in his or her ability to pursue all the different types of growth strategies.

3. Is being a franchisee simply substituting one type of employment for another type of employment?

4. How can a franchisee grow his or her business?

5. What are the legal or concerns related to being a franchisee?

Solution Preview

1. Being a franchiser seems to be a mechanism for growth, but what are the growth prospects for entrepreneurs who are franchisees?

The entrepreneur needs to do his or homework, as some franchises are more lucrative than others. (http://www.globalbx.com/f1_prosandconsoffranchises.asp). Tough economic times means that finding the right franchises for a business that has good growth potential, like Tim Horton's, is essential to success and growth. However, in terms of goods and prices, they are most often fixed by the franchise. (www.allbusiness.com/company-activities-management/financial-performance/11793689-1.html) However, there are some growth strategies such as building a loyal customer base of repeat customers by being friendly and an effective communicator, hiring employees that are efficient and friendly and customer focused, creating a customer-focused culture for the organization, clean walks and parking area, etc.

2. Discuss whether or not the entrepreneur is limited in his or her ability to pursue all the different types of growth strategies.

Entrepreneurs are somewhat limited to pursue different growth strategies in most franchises, even the most hands-off franchise (and even these rarities) may limit the control the franchisee has to pursue growth strategies. Typically, she or he will have no control over the goods they use and the cost of these goods or the suppliers. If the franchisee is involved in a trade/craft-oriented franchise, such as plumbing or painting, she or he may have little say over the jobs you can take or turn down. Bad press created by another franchisee can ...

Solution Summary

The solution discusses franchisee pros and cons.

$2.19