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Advantages & Disadvantages of Franchising  

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Advantages & Disadvantages of Franchising For a franchised network to be successful in the long term, both the franchisor and the franchisees must derive from the arrangement solid and enduring benefits which otherwise would not be readily available to them. Although the expectations of the expectations of the franchisor and all franchisees within a network tend to converge, their perceptions of the advantages to be gained from the arrangement will differ somewhat, as the following paragraphs show. Advantages form the franchisor's viewpoint An entrepreneur who considers the expansion of his business has various options open to him, including the establishment of branches, entering into joint venture agreement s, contracting with distributors - or setting up a network of franchisees. To set up branches or, to a lesser extent perhaps, enter into joint venture operations, would entail a large investment in infrastructure and working capital. Both options would also make huge demands on...

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