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FRANCHISING

FRANCHISING. Franchisee-Advantages. Avoiding the unnecessary trial and error period in starting and operating a new business. Lower financial risk, compared to other ventures, because investment costs are lower and profit margins are higher.

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FRANCHISING

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  1. FRANCHISING

  2. Franchisee-Advantages Avoiding the unnecessary trial and error period in starting and operating a new business. Lower financial risk, compared to other ventures, because investment costs are lower and profit margins are higher. Business Format Franchising complete packages ensure a ready to go “turn-key” franchised unit. Managing a small business whilst depending on the power of the franchisor company which has a bigger organization. The franchisee has an opportunity to run a proven business concept with a successful operational track record. The franchisee has access to accumulated business experience and technical know-how in managing the business. Easier purchasing, storing, and product display systems.

  3. Franchisee Disadvantages • Value of brand name determined by franchiser(owner of brand) • Introduction of new products determined by franchiser • Your reliability tied to the rest of the system • Some of the profit need to give to the franchiser

  4. ADVERTISING

  5. Newspapers Magazines Radio Television Outdoor Media Yellow Pages Internet Major Advertising Media

  6. Newspapers Advantages Disadvantages • Limited demographic selectivity • Limited color • Low pass-along rate • May be expensive • Geographic selectivity • Short-term advertiser commitments • News value and immediacy • Year-round readership • High individual market coverage • Co-op and local tie-in availability • Short lead time

  7. Magazines Advantages Disadvantages • Long-term advertiser commitments • Slow audience build-up • Limited demonstration capabilities • Lack of urgency • Long lead time • Good reproduction • Demographic selectivity • Regional/local selectivity • Long advertising life • High pass-along rate

  8. Radio Advantages Disadvantages • No visual treatment • Short advertising life • High frequency to generate comprehension and retention • Background distractions • Commercial clutter • Low cost • Immediacy of message • Short notice scheduling • No seasonal audience change • Highly portable • Short-term advertiser commitments • Entertainment carryover

  9. Television Advantages Disadvantages • Short life of message • Consumer skepticism • High campaign cost • Little demographic selectivity with stations • Long-term advertiser commitments • Long lead times for production • Commercial clutter • Wide, diverse audience • Low cost per thousand • Creative opportunities for demonstration • Immediacy of messages • Entertainment carryover • Demographic selectivity with cable

  10. Outdoor Media Advantages Disadvantages • Short message • Lack of demographic selectivity • High “noise” level • Repetition • Moderate cost • Flexibility • Geographic selectivity

  11. Internet Advantages Disadvantages • Difficult to measure ad effectiveness and ROI • Ad exposure relies on “click through” from banner ads • Not all consumers have access to Internet • Fast growing • Ability to reach narrow target audience • Short lead time • Moderate cost

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