Positives and Negatives Of Owning A Franchise

- The positive thing about owning a franchise is that the franchise system generally
already has ready and mature business management. This is because franchisors
usually start to provide opportunities to open franchises because the business they are
doing is mature, has a definite or unchanging market, and also has a good reputation
so that the management and business strategy that is being carried out is sustainable.
Then, the other positive side is that people who buy franchises will benefit from the
cooperation that has been built previously by the franchisor. For example, cooperation
with suppliers of raw materials, advertising and marketing parties, and so on. With
good cooperation, franchisees usually provide support in the form of financial
management training, marketing, and also the supply of resources.

- The negative side of franchise ownership is the lack of control of the franchise over
his own business. This happens because all systems have been determined by the
franchisor. So the space for franchise buyers will be very limited. In addition,
although franchising has a mature market, franchisees are usually caught up in market
trends. The changing consumer behavior towards trends can affect the condition of
the franchise business. There is dependence on the reputation of other franchises. If
another franchise makes a mistake that causes reputational damage, it will also affect
the franchise you are managing. In setting up a franchise, the owner requires more
capital. Because the franchisee will submit an initial fee to buy a franchise agreement.
Then there are the follow-up costs of training and support for franchisees.