| Benefits |
Drawbacks |
| opportunity to base one’s business activities on proven market concept and a known brand. |
1.limitation to one’s own initiative and innovativeness resulting from the necessity to work based on a model proposed by the system’s provider, |
| opportunity to start a business activity also in case of a person without the proper preparation in terms of knowledge and capabilities, |
2.necessity to engage relatively large amount of finance in order to join the system, |
| content-related, technical and organizational knowledge provided to the recipients by the franchisor, |
3.significant dependence on the franchisor’s strategy and economic as well as financial condition, |
| access to the benefits of the economies of scale, |
4.lack of full freedom in managing one’s own business, with respect to e.g. ownership changes, restructuring or selling one’s company, |
| opportunity to gain experience in running one’s own business, based on the modern management methods, |
5.growth limitations imposed on the company, referring to e.g. product or market development, or territorial expansion. |
| opportunity to gain stable economic and financial benefits. |
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