February 2, 2023


Business/Industrial Goods and Services

Advantages and Disadvantages of Business with a Franchise System

Advantages and Disadvantages of Business with a Franchise System

Advantages and Disadvantages of Business with a Franchise System

Franchise System- Partnerships or what is often referred to as franchises are currently busy and lively and carried out by business people in Indonesia. This business opportunity is quite profitable compared to starting a business from scratch.

This partnership is a collaboration between small and medium businesses with large businesses that have names and are well-known everywhere. This effort is also accompanied by guidance and coaching for more advanced development so that it is mutually beneficial.

However, this business system also has advantages and disadvantages like businesses in general. For those of you who want to enter the world of this franchise business, it is better to listen to what are the advantages and disadvantages so that later your business can run smoothly and with full consideration.

Advantages of the Franchise System

This business system does sound easy to do because there is no need to start a business from scratch. And here are some of its advantages:

Structured Management

One of the advantages of this business is that the system has been established and you don’t have to worry about where to start. Starting from the brand, business idea, and the system is already available and you just need to implement it. If you need more information about travel, please visit this site kelilingkota

Famous Brand

Because the brand is already well known, you don’t have to bother thinking about how to introduce the brand so that there are many fans or consumers. The product of this system already has many customers. Definitely more profitable than building a business from scratch.

Financial Management and Close Cooperation

Everything is available in this business. Starting from how the flow of financial management and cooperation. You don’t have to worry about building it from scratch. Raw materials and supplies have been provided from the start. you just need to follow the existing system and it will save your time for other things outside the business or inside the business.

Disadvantages of Franchise Business

If every business has its advantages, there will definitely be disadvantages that accompany it, including this franchise system. What are the drawbacks? Let’s take a good look at the following:

Complete Control from the Boss

Someone holds the power in this business and creates the existing system. Therefore you may not be able to vary too much outside the predetermined path. This will slightly limit your creativity in doing business because everything has been arranged.

Reputation Depends on the Main Franchisor

If something bad happens to the center then it is very likely that your partnership business will be affected even if you didn’t make the mistake. This seems unavoidable and you need to anticipate it from the start by researching the entire history of the company before getting into it.

Center Fee

Brand owners will generally apply a fee system to their partners. Partners who are interested in this business will usually be charged a fairly large fee including for other things such as training and mentoring. Maybe you will think first because this system requires large funds because it has spread in various regions.

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