A franchise business is mostpreferred kind of start up businesswith about 91% of all franchisesreporting profitability across theglobe, as per British FranchiseAssociation (BFA). FranchisingBusiness model is one of theattractive and most successfulbusiness formats of the day. Manyprospective entrepreneurs chosebuying a franchise over starting witha business of their own due to thevarious perks of buying a franchise.However, it is important to know thatfranchises have their own advantagesand disadvantages.

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

• 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 without vendor hunting

BrandProven FormulaAided Set UpEasy Financing

Shared Marketing CostLower Risk

Ongoing Support

DependenceStrict AdherenceOngoing CostsAll or NothingTerritory RestrictionFixed Term Agreement

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.

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 business for yourself, but not by yourself.”

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.

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 technology as per the requirement in the respective

Corporate Headquarters#15,Sri Lakshmi Complex, 4th Floor, St. Marks Road, Bangalore - 560 001. India

Tel: 91 80 6160 4545 e-mail: franchise@iihttechnologies.comweb: www.iihttechnologies.com/