Franchise Business Profit and Loss – Franchise business is a business collaboration between a prospective businessman and a business provider that offers products, trademarks and operational systems.

This franchise business can be an easier way to make a profit than building a business from scratch.

This business can in fact provide much more promising results. However, a franchise business also has its own advantages and disadvantages compared to a regular business.

Franchise Business Advantages

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  • Organized Business Management
    The franchise business has management that is already organized and runs according to the system. You no longer need to worry about business systems, ideas, products and brands. You only need to prepare a location where this business will run.
  • Famous Brand
    A well-known brand is one of the advantages of a franchise business, so you don’t have to bother anymore to build a product brand. You will find it easier to promote your franchise business and you can get consumers more easily.
  • Good Financial Administration
    The franchise business certainly has partners, therefore the financial administration in it is also well regulated. A financial administration system that is definitely tested and makes it easier for you as a franchise business owner to manage financial administration.
  • Cooperation
    One of the best advantages of a franchise business is cooperation with suppliers and marketing strategies that have been provided by the franchise business provider. Franchise business providers also provide special training and tricks for success in the franchise business.

Franchise Business Losses

  • Full Control of the Franchisor
    If a franchise businessman has innovations or ideas in his franchise business, it is not necessarily the franchise provider who has full control over all his franchises agrees with the innovation. The reason is that the franchise provider has its own system which according to him has been tested.
  • There is Profit Sharing
    In a franchise business, most business owners are required to pay a portion of the profits in the franchise business and are also charged a partnership fee. However, not all franchise businesses have these costs, it would be wise if you ask about the distribution of profits to the franchise provider clearly.
  • Sole Supplier
    The raw materials for franchise business products and suppliers have been determined by the franchise business provider. This policy certainly cannot be violated by the franchise owner because it will conflict with existing rules.
  • Easily Disturbed Reputation
    If one of your franchise partners has a bad business reputation, then your franchise can be affected because you are in the same business umbrella as your franchise partner.

You will definitely experience advantages and disadvantages in running a business, it’s just that these advantages and disadvantages have their own types depending on the business you are in, including this franchise business. (Ryan Andrejavier)

Source: – Berita Terbaru Bisnis, Ekonomi, Investasi Indonesia by

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