What is a franchise? What are the advantages and disadvantages of this type of
business?

Franchising is based on a marketing concept which can be adopted by an organization as a strategy for business expansion. Where implemented, a franchisor licenses its know-how, procedures, intellectual property, use of its business model, brand, and rights to sell its branded products and services to a franchisee.

Advantages

Expansion can be faster because franchisees provide the labour and their sales provide the growth

Disadvantages

Franchisees cannot be managed as closely as employees and they may have different goals to the franchisor

Explanation:

Hope this helps!

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