Franchise business or what we are familiar with is a franchise business. Who does not know this business? For those of you who want to run an instant business without starting from scratch, this franchise business can be your choice.

Also, many recognize that by running this franchise business you will get success quickly.

So it’s no wonder that in India there are so many and proven successful and many enthusiasts, including KFC, Pizza Hut, McDonald’s, AW, Hoka Hokabento, and many others.

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In this business, two parties work together to achieve a profit with certain agreements, namely business owners and business actors.

The working principle of this business is profit sharing, where the business owner gives the business owner to the business actor and conducts supervision of the business carried out so as not to cause misunderstanding between the two parties.

Advantages and Disadvantages of Franchise Business

In this review, we will discuss the advantages and disadvantages we run a franchise business. This is intended to be a stabilization or learning for those of you who intend or want to run a franchise business.

There are several advantages and disadvantages of this franchise business, including:


1. Good Business Management

To run this business you do not need to be confused in thinking about management in your business.

Because here you only have to run a business that you run has been tested and has been well trained.

So by running this business you will be more simple and practical do not have to start from scratch but just run it.

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2. No Need To Build From Scratch

There is no doubt that the franchise business or business that you get from the business owner is well structured and well structured, from starting to manage the company, strategies in finding customers and facing challenges.

Everything is set up in such a way that you do not have to start long, you have to start it yourself, here you only need to implement and run the business.

3. No Need To Be Confused Looking For Customers

In this business, you do not need to be tired of introducing products and looking for consumers, because the brands and products in this business are already known by the wider community.

Undoubtedly consumers will come alone without you having to invite them.

4. Low Marketing Costs

Why in this franchise business marketing costs are low. Because you don’t need to make advertisements or brochures for product introduction.

You don’t need to think about equipment or everything that is needed in this endeavor, because it’s fully available. You give capital then you will get it all, more economical, isn’t it.

5. Support And Security Guaranteed

Business owners will always provide help and direction for you. They will provide the equipment needed besides they also help in creating good and effective conditions.

Also, the business owner can be a bridge for you with other parties that you need. Besides security is also more awake, because it is guided by experts who are professionals in their fields.

6. Greater Profits

Talking about the benefits you achieve, there is no question about running this franchise business you will get a lot of profit.

Because in addition to products and brands have been known in the wider community, and there are many enthusiasts. You will also get tax from buyers or consumers.

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7. Chances of Losing A Little

By carrying out this franchise business the possibility of failure or a slight loss, because there are a system and management that is good and tested.

In contrast to starting your own business you still often fail because there are no skilled guides and there is no help and supervision from other parties.

8. Using The Principle of Openness

Openness is one of the basic things that must exist in this franchise business.

Because basically, the work system of this business is a collaboration between two parties which are bound by an agreement.

So business actors always make financial reports that are used as material reports to business owners.


1. Large Initial Capital (Investment)

For those of you who want to run a franchise business, be prepared with large funds, because the company you are buying will already have a good label, high reputation, and guaranteed greatness.

So it’s not easy to get this franchise, you have to provide large funds to get it. So for those of you who are not ready, it is advisable to undo your intentions.

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2. The Duration of The Contract

For those of you who want to progress or develop, it will encounter difficulties and obstacles when participating in the franchise business.

Because here there is a minimum contract duration of 10 years. so as long as you have to focus on that business, you are not allowed to open a new business or make a change in that business.

You could say you will be confined by the duration of the contract.

3. Less Flexible

Less flexible here means that whatever is in this business has a patent, starting from its management, marketing, work environment all are patents and cannot be changed.

In this case, you as a business actor are not allowed to provide innovation or creativity in this business, you are allowed to run and follow what already exists.

4. Royalties Dependents

Well-known brands and products from your franchise business, require you to appreciate them by paying royalties. These royalties are paid annually.

You could say you should always deposit what you can, as well as you who work hard for others who enjoy the results.

5. There Is A Possibility Of A Major Conflict

Franchise business is a collaboration between two parties with certain agreements, this tends to easily lead to debate or conflict when there is something that is less pleasing to one party.

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6. Maintain A Reputation

No doubt this franchise business has a high reputation, which requires you to look after it. Just a little mistake will bring you into a big problem, you must be responsible for the reputation of this business.

You will be faced with many people who will chide and cruel you. So you have to be really careful.


Here’s a little review of the franchise business. For those of you who like something that is practical, easy and can produce quickly, this franchise business is right for you.

But for those of you who want to be free to innovate, don’t like being on the mend mending your own business.