Advantages and deficiencies in franchayzinga. Systematic materials.

Like any other method of conducting the business of franchayzing has its advantages and deficiencies.
The phenomenon of wide acceptance and rapid development of franchayzinga consists,

first, in the mutual advantage both for franchayzera and for franchayzi and,

in the second place, in reduction in the taxable base.

But in what do consist pluses and minuses of system for participants in the franchayzingovogo agreement and their buyers?

Advantages for franchayzera:
the rapid expansion of the markets for sale, an increase in the volume of sales and the territorial expansion of business;
the absence of expenditures for the content of the vertical- integrated network of control, i.e., reduction in the expenditures for personnel;
the lower level of its own capital investments;
the state registration of the agreement of franchayzinga;
the lift of the prestige of firm and her trade mark, acknowledgement from the side of clientele, an increase in confidence in quality and united assortment of the production of firm;
income from sale to license;
profit from possible leasing of franchayzi of real estate and equipment;
profit from the possible crediting of franchayzi and from the decrease it is timetable turnover.

Deficiencies for franchayzera:
obtaining the smaller part of the profit of the commercial franchayzingovogo enterprise, than from her own;
low reputation of one of the franchayzingovykh enterprises in the absence of proper control of the quality can be reflected in the reputation of firm herself;
the difficulty of checking of the authenticity of the financial reports to franchayzi;
difficulty with the selection of the competent at the bases business of franchayzi;
training for franchayzi, franchayzer prepares for itself possible competitor.

Advantages for franchayzi:
the possibility to become independent businessman with the minimum initial capital investments with the all-out support of experimental franchayzera;
franchayzer can render assistance in the access to the credit resources both commodity and money;
the instantaneous acquisition of reputation among the users due to conducting of business under the acknowledged trade mark or the firm designation;
the possibility for the moderate pay to use results of large-scale advertising measures, scientific developments and marketingovykh research, conducted by franchayzerom;
the possibility of conducting the business by incompetent face due to the instruction in the firm of franchayzera on the standards of high quality;
the warranty of a constant supply;
the possibility of the acquisition of the fixed capital in franchayzera via leasing or on the residual cost.

Deficiencies for franchayzi:
control achieved by franchayzerom leaves less than the independence in the business;
the loss of reputation by franchayzerom will lead franchayzi to the loss of its own reputation;
the services, allowed by franchayzerom, for example required payments into the general advertising fund, can present the serious article of expenditures for franchayzi;
the danger of worsening in the position on the market in the case of sale by franchayzerom of its business;
probability that the progress in the technology, change in the legislation or the needs of users will lead to bankruptcy, since franchayzi usually realize the narrow enumeration of goods and services.

Advantages for the user:
in the majority of the cases the goods and the services, realized hearth by one trade mark have identical quality and infrastructure of the exerted services;
if some fixed commercial point is shut - it is possible to turn into the main company;
due to quality control from the side of franchayzera franchayzingovye firms usually allow the higher level of maintenance;
franchayzi as owners give the user of service with the larger degree of personal participation.

Deficiencies for the user:
franchayzing can limit competition and, as a result, limits the selection of goods and services;
of franchayzi it can prove to be insufficient to those trained.