Franchising an Organized Space Business

Summarize the advantages and disadvantages of franchising Organized Space

In a franchise type of business, the owner of the franchise allows the development of new ways of conducting business, guidance, and assistance for the growth of the business. There are diversified advantages and disadvantages of franchising which can determine the future of the business. Since the business is already in place and making a profit for the past 10 years, there is no chance for the business to fail and a franchise increases the chances for success. Testing the market has already been done since the business has been in operation and has received a lot of publicity meaning the business is recognized therefore franchising will only increase the earning capacity (1). It is also very easy to have the franchise, especially in the organized space since customer base is already established. A disadvantage of the franchise is the issue to do with the franchisor exiting the business. At such a case, the franchise can lead to lots of losses and this could be challenging for the organized space business. Making any changes with regards to the business can be challenging since the signed restrictions could lead to court cases.

Evaluates the most significant factors to consider in the decision

When making the decision with regards to franchising, the most important factor to consider is what kind of benefits to expect. Franchising is an act that is meant to see the business grow from the local standards to favorable international standards. With such a market capacity, the success of the business is highly dependable on the kind of services offered (1). Organized space has been successful in the local market due to offering the best services for the customers and this means that even in the large market; more is expected for the business.

 

References

Business Law. Retrieved from: https://business.laws.com/business-intelligence