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Is franchising better than owning your Own outlet?

Kei

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#1
As franchising is a process where the franchiser licences his products, know how, intellectual property, brand and label to the franchisee at a price and the franchisee has to follow certain obligations and procedures of the franchiser in an agreement.

So do you believe it is better than starting your own corporate outlet since you will already have an established platform and merchandise to work with?
 

arunima25

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#2
Ii is a good option for business as the brand name is already established and you do not have to put effort to do so. But owning an own business and making it grow to heights is an altogether different accomplishment and you get the credit for it.
 

Kei

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#3
Ii is a good option for business as the brand name is already established and you do not have to put effort to do so. But owning an own business and making it grow to heights is an altogether different accomplishment and you get the credit for it.
I'm thinking as much. It might take a little longer with hard work and perseverance but in the end, you'll have all the glory and you'd have a brand and IP all to your name. Not to totally discredit franchising, it is a after and faster way but what is business without risk.
 
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#4
Franchising is a good business because usually, brands are already well established in the market and users know it well, even though it also has high fees to one owns the licence to open a brand store. It could be a secure investment but it is not accessible to everyone as one needs to have a good financial budget.
 

bendahara

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#5
The good thing about franchising is that, people already know the brand before you even start. You do not have to put much effort into advertising and marketing as you will just need to coordinate with them in this aspect. All Technology and knowledge will also be transferred to you.

The bad thing is that you will have to pay for the brand name at the start of the franchise and they will charge a certain percent at a certain intervals so they will be earning on your labor and effort while you are working your heart out.
 

arunima25

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#6
The good thing about franchising is that, people already know the brand before you even start. You do not have to put much effort into advertising and marketing as you will just need to coordinate with them in this aspect. All Technology and knowledge will also be transferred to you.

The bad thing is that you will have to pay for the brand name at the start of the franchise and they will charge a certain percent at a certain intervals so they will be earning on your labor and effort while you are working your heart out.
So it is always the preference of the person. My cousin is minting good money from two of his franchise --one of Dominos Pizza and other one of Talwalkars Gym. They both are an established brand. But surely he had to invest a huge amount to get started and meeting up their standards and requirements.
 
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#7
I will like my own business and try to create my own brand,no need still promoting someone's else brand or name.Using a brand like Mac's Donald is good one will readily have customers because of the name's reputation but one will still only be promoting another's business.
 

Kei

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#8
I will like my own business and try to create my own brand,no need still promoting someone's else brand or name.Using a brand like Mac's Donald is good one will readily have customers because of the name's reputation but one will still only be promoting another's business.
You are right. Owning your own brand is good. I think the reason people franchise is for fast business and gain. Those already established names make it easier. Whereas creating your own brand and making it well established will take a while but it is definitely worth it.
 
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#9
You are right. Owning your own brand is good. I think the reason people franchise is for fast business and gain. Those already established names make it easier. Whereas creating your own brand and making it well established will take a while but it is definitely worth it.
What people should also know is that nothing can be achieved in just a day,so it better we labor a while and have the fruits in the nearest future than still expanding another person's brand.
 

Kei

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#10
So in this light, it is better to have it going on while you do all you can to fully establish your brand. Afterwards you can focus on expanding and promoting it.
 

Gabbar

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#11
I have seen and experienced that running your own business is quite risky and it's better to go for franchise and you can start selling other brands under the same roof. Slowly and steadily you can setup your own business and get the required profits.
 

Kei

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#12
I have seen and experienced that running your own business is quite risky and it's better to go for franchise and you can start selling other brands under the same roof. Slowly and steadily you can setup your own business and get the required profits.
Exactly my point. You can even use the proceeds from franchising to fund Your Own establishment until it is steady. I've seen people successfully do that and become their own bosses.
 

anorona

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#13
You are right. Owning your own brand is good. I think the reason people franchise is for fast business and gain. Those already established names make it easier. Whereas creating your own brand and making it well established will take a while but it is definitely worth it.

I agree. It is easier to have good sales for a well known brand than to start from scratch. Franchising may costs more but you can surely recover your capital in short time.
People will prefer going to a well known brand rather than going to new ones where they can never be sure of thenservice and the quality of the products.
 
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#14
So in this light, it is better to have it going on while you do all you can to fully establish your brand. Afterwards you can focus on expanding and promoting it.
Exactly my thought,while helping another brand grow through franching one can also establish his or her own business and begins to see how to push it to the next level.
 

Gabbar

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#15
Exactly my point. You can even use the proceeds from franchising to fund Your Own establishment until it is steady. I've seen people successfully do that and become their own bosses.
Its called calculated risk and I see this helps a lot in the long run and patience is so much important in that. We need to be on our toes to work and soon we will see profits growing for us.
 

Kei

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#17
Right. Some people always want their own name and fame. So they don't care how long it takes as long as they don't have to be under the umbrella of someone else. I believe both have their pros and cons and it is best to weigh both options first before venturing.
 

Junrose123

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#18
Yes that is true, dealing with business should always have some good decision making so that we will not lose from it because both of them are good for various reasons.
 

chameli

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#20
Franchaising can be beneficial if you are granchaising with a large company, perhaos a multinational company. The brand is already so big that you do not have to work much to establish the brand and generate sales. However, if you are franchaising from a lesser known company, you may not be able to succeed.
 
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