1.3. What are business plans needed for?

Advantages / Disadvantages for Franchising

Advantages for franchisees

• Entry into the market is accelerated because the system is known and established. The franchisee should have territorial protection.
• The franchisor provides a tested business concept and a complete service package.
• The franchisor has built up a good image through many years of marketing and maintains this permanently.
• The credit rating is higher with banks because the entrepreneurial risk is better known.
• The franchisee is nevertheless an independent entrepreneur.

Advantages for franchisors

• The franchisor uses in particular the willingness of the franchisee as an independent entrepreneur.
• The franchisor can avoid the considerable expense of a branch system and set up a distribution network tailored to his business.
• The franchisor can market its market-proven system and know-how with a relatively low capital investment.