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Q.

What are the merits and demerits of franchising?

Asked by Deck Anthony, 26 Feb '09 09:52 am
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Answers (9)

1.

Merits -
1.extra mileage in mileage in marketing an established brand
2. Mutual beneficial - in training or adding new product - No separate RD is required
3. Cuts the cost and time for the investor

Demerit
1. You cant localise any marketing campaign -in otherword no freedom for investor to implement his/her ideas.
2. All financial plans and budgeting need to supplement the need of the franachisor
3. Increased dependency level on franchisor - eg : if the franchisor stop or delay supporting a particular franchisee the reputation of the local frachnisee goes for a toss
Answered by thyagarajan mahadevan, 28 Feb '09 07:25 am

 
  
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2.

Merit - easy money
demerit - no creative freedom
Answered by jahanvi kapoor, 27 Feb '09 10:33 pm

 
  
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3.

Merit - propagate your business
demerit - sharing your profit
Answered by pooja gupta, 27 Feb '09 09:20 pm

 
  
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4.

Sometimes the franchisee does not keep up the standards of the brand name thus there is loss of reputation and cheating of the clients.
Answered by harishanker, 27 Feb '09 08:47 pm

 
  
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5.

Credit goes to the manufacturer, and, dents comes to the franchisee
Answered by UMESH SHARMA, 27 Feb '09 08:16 pm

 
  
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6.

Giving our daily life to the work allotted by Managing director-demerit.
Giving our daily life to the work allotted by our self and our neighbors.
Answered by vijay vittal rao, 27 Feb '09 07:44 pm

 
  
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7.

Merit : established market withou advertising
demirit: have to stick to rules ans share your profit
Answered by Bhaskar Ramasami, 27 Feb '09 06:19 pm

 
  
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8.

Merits of franchising : business development and expansion through others ,utilising their mind,finance,work power,market and sweat for the benefits of the franchisee company .what company frovides to the the franchisers are logistics,on board services and training whose costs are met by giving low margin i.e.cut percentage of total cost for the product.

demerits of franchising: 24x7 services to the franchisers....
Answered by malaya sahay, 27 Feb '09 06:03 pm

 
  
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9.

Very often the quality control is dismal. So even if the principal is quite renowned the franchisee may do a poor job and thereby tarnishes the image of the principal.
Answered by Mahua Maharana, 27 Feb '09 06:00 pm

 
  
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