Tuesday, May 28, 2013

Franchise business offers many benefits over other start-ups; however, it also comes with its own drawbacks. As an investor, to know about the nitty-gritty of the franchise business before hand and being prepared is fundamental. The blog introduces you to the basic Franchise Business Advantages and Disadvantages that you ought to know before buying a franchise.


  • Associating with a well established brand
  • Complete support in site selection, lease negotiation, site development, layout designing and purchase of equipments and inventories
  • Entrepreneurial and management training
  • Ongoing training and management assistance
  • Access to market research
  • Reduced marketing and promotional burden along with complete Merchandise Assistance
  • Training in and complete access to well designed proven standard Operational Procedures
  • Comparatively better access to finance options and even financial assistance in establishing the business in a few cases
  • Enjoy product profits and financing packages
  • Ongoing training to the personnel and timely upgradation of Process and Trends
  • Ongoing support for all critical situations
  • Can purchase any number of Franchises


  • Business critical decisions are in the hands of Franchisor
  • Standard operations needs to be strictly adhered to unless leeway is given by the Franchisor on the subject matter
  • Territory permits leads to restrictions on expansion offering only option to set up more Franchises
  • Ongoing payment of fees to the Franchisor
  • Less control on sale of the business
  • Fixed period agreement and renewal depends on Franchisors discretion
  • Goodwill can be converted only by Franchisor

Note : It is important to understand that not all the above factors will be same with all franchises. All franchise operates on different terms and only a combination of a few is factored by individual franchises.

IIHT offers vibrant solutions to its franchise partners. Even though there are standard procedures, IIHT ensures to customise individual Franchise Operations based upon the demographics and the need of the local market in individual countries. IIHT also ensures to share all the terms and conditions and standard procedures with the prospective partner so that they have complete comprehension of IIHT modus operandi, providing opportunity to negotiate and clarify all the terms. To know more, kindly contact IIHT Headquarters.