This document discusses the pros and cons of franchising as a business model. It notes that franchising provides benefits like an established brand, marketing support, and training from the franchisor. However, franchising also has disadvantages like high initial costs, ongoing royalty fees, and less flexibility and creativity. While franchising leverages an existing model, it offers limited control and growth potential for the franchisee. The document analyzes franchising and quotes experts who argue it may not be the best option for true entrepreneurs.

1. Pros and Cons of Business Models By Val A. Slastnikov, Business Models Expert © 2010 Digitizer Group. All rights reserved

2. PART SEVEN (Pros and Cons Of Franchising Model)

5. “ Franchising” Pros Franchise Leverage: Yes Franchisor’s Model Franchisor’s Success Franchisor’s Training

6. “ 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

13. Where do you go from here?