A franchise business is most preferred kind of start up business with about 91% of all franchises reporting profitability across the globe. However, it is important to know that franchises have their own advantages and disadvantages.

2. A franchise business is most
preferred kind of start up business
with about 91% of all franchises
reporting profitability across the
globe, as per British Franchise
Association (BFA). Franchising
Business model is one of the
attractive and most successful
business formats of the day. Many
prospective entrepreneurs chose
buying a franchise over starting with
a business of their own due to the
various perks of buying a franchise.
However, it is important to know that
franchises have their own advantages
and disadvantages.

3. Ongoing support is one of the
key merits of a franchise
business, as there is a franchisor
that is always looking over the
business protecting interest of
both self and the franchise.
Along with this come various
advantages, such as

4. • A reputed brand name
• A guide who helps in entire set up
and start up of the business
• A fraction of a market that is ready
for your product or services
• A proven business process and
operations ready to be implemented
• An ongoing research and development
taken care of by franchisor
• Timely upgradation, innovation and
introduction of newbie
• Receive extensive training
• Approval on loans is simpler as
bankers find franchise as a lower risk
business
• Marketing is usually undertaken by the
franchisor for entire region, with
costs shared among all the franchises.
Hence there is a reduced burden of
planning for marketing and the cost
as well is shared.
• There is access to bulk purchasing

5. Brand
Proven Formula
Aided Set Up
Easy Financing
Shared Marketing Cost
Lower Risk
Ongoing Support
Dependence
Strict Adherence
Ongoing Costs
All or Nothing
Territory Restriction
Fixed Term Agreement

6. Even though franchise
business is gaining high
reputation and is leading
model of business which is
proven to even bear economic
downturns, it also comes with
many disadvantages mostly
related to decision making
crucial for business because
of which it is important to
explore the downside of
franchise business before
making the investment and be
prepared.

7.  Franchise Business is quite
dependent on the parent company
 The operational procedures are
adhered to diligently and
strictly, non-adherence may result
in losing the business
 Less autonomy on overall business
 Restricted territory of operation
 Ongoing payments, fees and other
charges
 Fixed term agreement, renewal of
which depends on franchisors
discretion
 Less control on sale of
franchise, and a fees is paid for
same as well
 You cannot pick and chose the
elements from the design, it is all
or nothing that a franchisor offers
“Owning a franchise allows you to get into a

8. Every style of business, perhaps, has its
own advantages and disadvantages. As a
prospective entrepreneur it depends on
you to decide what kind of start up suits
you as an individual and a businessman.

9. Indian Institute of Hardware and Technology (IIHT) has
its own pros and cons, however it ensures that all
decisions are taken in the best interest of the business
itself and the franchises. This is essential as the
interest of entire business and all franchise depends on
how each franchise individually performs. IIHT Franchise
has its presence in countries such as
China, Malaysia, Turkey and Nigeria to name a few, and
has been flexible to change its processes and operations
to customise the business to suit the demands of the
local market in the respective country like any
international franchise business. IIHT has a reputation
for timely upgradation and introducing courses in latest

10. Corporate Headquarters
#15,Sri Lakshmi Complex, 4th Floor, St. Marks Road, Bangalore - 560 001. India
Tel: 91 80 6160 4545 e-mail: franchise@iihttechnologies.com
web: www.iihttechnologies.com/