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FC business

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Guide 2 of FC business introduction

Merit and demerit of franchise business

Must be settled to perform business in individuals originally, have many problems.
For example, we think that we can understand even arrangement of product easily even if we think about difficulty to keep the stocking, stock from each maker, wholesale dealer, and to manage product of 3,000 items in shop when we open convenience store in individuals.

Then, we arrange merit, demerit to join franchise chain.

  1. Merit
    1. Generally, chain name and mark, image known widely are available
    2. Without business experience, we can start business by instruction of the headquarters.
    3. As we perform business based on the results and experience that the franchise headquarters accumulated in the past, probability to succeed in individual in comparison with case to open is high.
    4. We can receive management instruction (tax practice, accounts, law) and support (new product development, securing of stocking, sales promotion, education) by the franchise headquarters and can devote ourselves to business.
    5. We can do business as independent company.
    6. The headquarters stocks in large quantities and it is cheap and is stable and can purchase high quality product and materials which produced again.
    7. We can ask the headquarters for location investigation into opening of business article.
    8. We can participate in sales campaign which we made use of scale only in franchise chain including advertisement in.
  2. Demerit
    1. Unity of chain is given priority to, and it is limited by rule of franchise package which franchiser provides that franchisee makes use of personal idea freely.
      You must obey image of store, the handling product and service, management policies of the all headquarters including menu.
      For example, we sell product except designation without permission, and there is limitation in using equipment out of the designation only for reason that amount of money is low.
      In addition, we adhere rigidly on business hours, holiday.
    2. There are transfer of business rights or secret maintenance duty. In addition, the end of the business in the middle has constant condition in term of a contract.

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