- Franchising
“Neither a franchisor nor a franchisee be.” This slightly amended version of Shakespeare’s well-known admonition on money lending is perhaps a bit unfair to the franchise format of business.
Franchisee relationships have offered an entry to businesses for many "would be entrepreneurs" and has brought great success for some.
For many others, however, it has spelled financial ruin and the loss of their life savings or retirement or retrenchment packages.
In a franchising relationship the franchisor often has at its disposal much more information about the particular venture and market, as well as substantial experience of its operation and weaknesses.
The prospective franchisee may be a business novice. The dangers of such a situation are self-evident.
Franchisee relationships have offered an entry to businesses for many "would be entrepreneurs" and has brought great success for some.
For many others, however, it has spelled financial ruin and the loss of their life savings or retirement or retrenchment packages.
In a franchising relationship the franchisor often has at its disposal much more information about the particular venture and market, as well as substantial experience of its operation and weaknesses.
The prospective franchisee may be a business novice. The dangers of such a situation are self-evident.