The Advantages and Disadvantages of Franchising

Do you know your coffees?!
August 4, 2020
Selecting the right franchise business for you
August 24, 2020

ADVANTAGES

  • You receive a turn-key solution: location, equipment, supplies and training.
  • The franchisor will also have a good idea of what locations and demographics work best for their business and this is crucial to success.
  • Your business is set up for you all you have to do is undergo training for yourself and the staff and open your doors
  • The business model has proven to be successful.
  • There is a low failure rate.
  • The Franchisor is able to give valuable assistance when you need it.
  • It is easier to get a loan for a franchise than a regular start-up
  • As a Franchisee you can explore a new industry without having any experience in it and this will allow you to gain knowledge, experience and secrets of the industry
  • You benefit from the collective buying power of the group
  • You will be buying a business with a built-in loyal customer base
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Summary:  Buying a Franchise offers you the independence of owning a small business with the added support of a big business network.  If you will be looking for regular support, and feel that you need more guidance in the procedures and methodology of your business, a franchise might be the perfect option for you.

 

 

DISADVANTAGES

  • The initial investment is high – but Famous Bean have different models to suit your investment
  • Creativity is limited as you have to stick with brand guidelines for both advertising and products that you are allowed to sell – but some of Famous Bean models allow you to choose the products that you sell
  • Monthly royalty fees reduce your profit margins – Famous Bean royalty fees are some of the lowest in the industry
  • Mistakes of other Franchise stores can impact on your store and the group as a whole – Famous Bean franchisees are owners in their own right, other stores will not necessarily impact your store
  • Your financial information is shared with the Franchisor – Famous Bean sign a confidentiality agreement to keep all information confidential

 

Summary:  While franchising is seen by many as a simple way to go into business for the first time, there is no guarantee of success.  It is up to the franchise owner to practice principles of good management:  informed decision-making, working hard, but smart, good time management and most important serving your customers well.

 

Famous Bean is a proud team that is made up of a small, select group of professionals, with years of hands-on experience in the food and beverage and hospitality industries. Each café is set up and launched hands-on with the Famous Bean team, ensuring that the franchisee and staff can confidently manage and operate on a daily basis on completion of the café setup. Thereafter, support is always available to ensure the successful operation of the café at all times.

Our core values are as follows:

  • Passion and enthusiasm to make the franchise work
  • High standards and a drive to achieve them
  • Fully focused on the business
  • Business sense and experience
  • The ability to use own initiative
  • Passionate about people
  • Service orientated