Advantages and disadvantages of franchising. Give examples and Essay

Advantages and disadvantages of franchising. Give examples and evidence to support your answer - Essay Example Hence, attracting many players who see this method being secure compared to starting a corporation from scratch. However, despite the method cited to be more secure by franchisees, they face varied disadvantages. Therefore, this study seeks to highlight diverse advantages and disadvantages, which franchisees encounter while riding on reputation they have not built. Franchising unlike other methods of establishing a guaranteed business venture, it avails numerous growth opportunities (Verma, 2012, p. 122). This is in terms of higher revenues and profits, which is not possible when an entrepreneur decides to start from the scratch. Since, in franchising an entrepreneur usually rides on an already established reputation whereby the franchisees’ role is to ensure good quality of merchandise aligning with the original maker’s products (Verma, 2012). On the part of franchisors, they enjoy significant inflow of revenues and profits besides their brand continuing to grow, hence manage to retain large pool of clientele within a given region. Therefore, they benefit from their good reputation, which they have already established with time (Verma, 2012, p. 122). This is evident with UK’s â€Å"Time For You† franchise currently boasting of high quality cleaning services thus drawing numerous and potential entrepreneurs making i nquiries to ride on its reputation. This is because of guaranteed chance of making high profits compared to other poorly managed franchises in the country. In addition, the possibility of franchise’s image loss or diffusion is not that high compared to when the main stream operates singlehandedly all branches in a given region (Verma, 2012). This is because franchisees are responsible for the thriving of their ventures while riding on the mainstream’s reputation. Therefore, any franchise its role in this case is to compel all respective branches to keep up