What are the advantages and disadvantages of joining mode?

(1) Joining a franchising enterprise with strong strength and high reputation has low investment risk and can get financial help from the franchisor.

(2) The franchisee can accept the management training and guidance of the franchise enterprise system.

(3) You can enjoy various promotional activities such as large-scale advertisements of affiliated enterprises. The use of service trademarks, product trademarks, ownership, patents and designs that are well known to the public by franchised enterprises is conducive to improving competitiveness.

(4) Joining enterprises concentrate on purchasing goods, reduce costs and ensure the supply of goods.

Disadvantages of franchise mode:

(1) The mode of operation has no autonomy and is restricted by franchisees, which limits its growth.

(2) Pay the expensive joining fee and share the profits with the franchisor as agreed.

(3) Must accept the unified supply price of the franchised enterprise.

(4) If there is a problem with one affiliated enterprise, it will bring trouble to all enterprises.

Extended data:

Types of franchising:

(1) Monomer franchise: The franchisor gives the franchisee the right to open a franchise store in a certain place.

(2) Regional franchise development: The franchisor gives the franchisee the right to open a specified number of franchise outlets in a specified area and at a specified time.

(3) Secondary franchising: also known as secondary franchising. The franchisor gives the franchisee the right to sell the franchise in the designated area. In this type, the franchisee has a dual identity, both as franchisee and sub-franchisee.

(4) Agency franchising: the franchisor authorizes the franchisee to recruit franchisees. As the franchisor's agency, the franchisor re-recruits the franchisee on behalf of the franchisor and provides guidance, training, consultation, supervision and support for the franchisee.

Baidu encyclopedia-franchising