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Franchise: What Is Its Status?

What is the status of owning a franchise? Those I searhed for say the franchise period is of 3 years. But how many of us want to own a franchise of something?

Perhaps it is best for those start-up entrepreneurs with little or no money.

What's your say?

Replies

  • Kaustubh Katdare
    Kaustubh Katdare
    The Franchise model of business has its own advantages and disadvantages. I have never owned any; so don't have a first hand experience. The big downside is that it needs lot of seed capital to start; but the parent company will take care of establishing your business with a known brand and operations. For example, I've heard that if you're setting up a restaurant, franchise model works the best if you don't have prior experience (but then getting accepted in the franchise program becomes a little difficult).

    For those with little money; start small & think big.
  • ISHAN TOPRE
    ISHAN TOPRE
    The_Big_K
    The Franchise model of business has its own advantages and disadvantages. I have never owned any; so don't have a first hand experience. The big downside is that it needs lot of seed capital to start; but the parent company will take care of establishing your business with a known brand and operations. For example, I've heard that if you're setting up a restaurant, franchise model works the best if you don't have prior experience (but then getting accepted in the franchise program becomes a little difficult).

    For those with little money; start small & think big.
    Say if you can arrange seed capital and get selected in franchise model, what are the other drawbacks that one faces in your opinion?
  • Kaustubh Katdare
    Kaustubh Katdare
    The biggest drawback is that you can't call it your brand and depending on the contract, you'll be working for another (parent company); which might require you to share your profits with them. In a case when the original brand gets negative publicity; your local business suffers for no reason! In short, the biggest advantages are 'High Initial Costs' & 'Dependency'.
  • ISHAN TOPRE
    ISHAN TOPRE
    Here is something for general public.
    #-Link-Snipped-#
    Meanwhile I am looking for responses from other CEans. Has anyone availed franchise option?

You are reading an archived discussion.

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