Part Seven - Pros And Cons Of Franchising Model
Upcoming SlideShare
Loading in...5
×
 

Part Seven - Pros And Cons Of Franchising Model

on

  • 5,236 views

Do you know what model to choose in your Life and Business?

Do you know what model to choose in your Life and Business?

Statistics

Views

Total Views
5,236
Views on SlideShare
5,226
Embed Views
10

Actions

Likes
0
Downloads
76
Comments
0

1 Embed 10

http://www.slideshare.net 10

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Part Seven - Pros And Cons Of Franchising Model Part Seven - Pros And Cons Of Franchising Model Presentation Transcript

    • Pros and Cons of Business Models By Val A. Slastnikov, Business Models Expert © 2010 Digitizer Group. All rights reserved
    • PART SEVEN (Pros and Cons Of Franchising Model)
    • What is Franchising?
      • Franchising is a method of doing business wherein a "franchisor" authorizes proven methods of doing business to a "franchisee" for a fee and a percentage of sales or profits.
      Is Franchising for you?
    • Who belongs in this category?
      • Any type of a Franchise Owner (“franchisee”) if you are not a Franchisor
      Do you have what it takes to be a Franchise Owner?
    • “ Franchising” Pros Franchise Leverage: Yes Franchisor’s Model Franchisor’s Success Franchisor’s Training
    • “ Franchising” Cons Franchise Control: No Customer Base: Limited Startup Costs: High Carrying Costs: High Scale- ability: No Growth Potential: Limited Replic- ability: No Multiple Income Streams: No Profit- ability: Limited
    • Level of Effectiveness
      • Pros: 1
      • Cons: 9
      Level of Effectiveness = 10% Franchise Leverage: Yes Franchisor’s Model Franchisor’s Success Franchisor’s Training Franchise Control: No Customer Base: Limited Startup Costs: High Carrying Costs: High Scale- ability: No Growth Potential: Limited Replic- ability: No Multiple Income Streams: No Profit- ability: Limited
    • Analysis
      • Franchising Facts:
      • Franchise is a legal and commercial relationship between the owner of a trademark, service mark, brand name, or advertising symbol (the franchisor) and an individual or organization (the franchisee) wishing to use that identification in a business.
      • The franchise governs the method of conducting business between the two parties.
      • Generally, a franchisee sells goods or services supplied by the franchisor or that meet the franchisor's quality standards.
    • Analysis
      • Advantages of Franchising:
      • Established Brand and Customer Base
      • Marketing Support
      • Business Support
      • Training Support
      • Access to Proprietary Methods
      • Reduced Risk
    • Analysis
      • Disadvantages of Franchising:
      • Initial Payout
      • Royalty Payments
      • Marketing/Advertising Fees
      • Limited Creativity/Flexibility
      • Sole Sourcing
      • Long-Term Contract
      • Dependent on Franchisor Success and Reputation
      • False Expectations
    • Quote
      • “ Why would anybody go out and spend $50,000 on a franchise to makes whatever when you can just start a business with no capital out of pocket and way more scalable ?”
      • – Brad Fallon, a Co-founder of StomperNet
    • Takeaways
      • “ If you are a real entrepreneur – then franchising may not be for you. Real Entrepreneurs don’t own franchises – they choose their own path to success.
      • All franchises are “screening out” entrepreneurs because they don’t want them to mess with existing model.” – Rich Schefren
    • Where do you go from here?
      • CLICK HERE TO GO TO
      • PART EIGHT