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Summarize the advantages and disadvantages of franchising Organized Space

Advantages: Business expansion – Opening more franchisees are better than having branches. Royalty income from the franchisees. Profitable business model, Products and services will have already established a market share, franchising reduces the possibility of business failure

Disadvantages: Restrictions in the franchise agreement on how to run the business, franchisor might go out of business, profits are usually shared with the franchisor, and inflexibility nature of a franchise can be a hindrance to the ability to introduce changes to the business when the market changes.

B. Evaluates the most significant factors to consider in the decision

Evaluate what it takes to be an entrepreneur, what it takes to be a franchisee and gather all the information about the franchise you are considering to buy.

Franchise fees and startup costs get to know the initial costs of buying the franchise, the pay continuing management service fees etc.

Franchise agreement – Review the franchise agreement

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