| A. Concept of business.
|| Owner needs to devote substantial amount of time researching the market and developing the product or service.
|| Proven concept that can be adopted immediately.
| B. How business is operated.
|| Testing the business requires time and may undergo several rounds of trial and error.
|| Proven procedure in running the business stated in operations manual requires minimal amount of business research.
| C. Business owner is the boss.
|| You own everything but business success also relies on your abilities.
|| You own the franchise but you share responsibility with the Franchisor, minimizing instances for error.
| D. Availability of instant customers.
|| It may take time and significant amount of investment to retain loyal customers.
|| Previous customers already know the brand. They are familiar with the product o service as Franchisor has already done the promotional legwork.
| E. Assistance in running the business.
|| Business owner has to rely on him/herself.
|| Franchisor assists Franchisee on all aspects of the business and acts as business consultant.
| F. National advertising.
|| Costly and only a few can afford to do this.
|| All branches contribute to the national advertising program. Contributions are used to promote the business.
| G. Availability of supplies.
|| Buying price is high and independent business owner is not the first priority because of low volume purchase.
|| Low price due to bulk purchase. Franchisor maintains steady supply for the network of Franchisees.
| H. Certainty of success within 10 years.
|| Only 18% of businesses remain operational.
|| 90 per cent of franchise businesses remain operational.