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  • Essay / The Pros and Cons of Franchising - 1674

    In a franchise, it's basically take all or nothing. Even that being said, if the franchise is successfully established and you invest your money in a validated system, there should be no doubt. A franchise can be classified into three simple groups such as product distributors, for example a car dealership, where the franchisee has the right to sell the products. Brand and trade name licensing is a franchise group in which the franchisee owns the license to market the company's brand such as Coca Cola. Business format licenses are another group in which the franchisor provides the franchisee with everything they need to start the business and operate it according to the established procedures they have established. An example would be Wendy's lending its brand and rights to the entire business model. The whole business model could mean how much meat you use in the burgers or what they put in them. The franchisee can even benefit from advice and training from the franchisor. The franchisor is trying to create the same experience that customers had at the original Wendy's at the franchisee's.