Ethics Case
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Week 3
Why would you prefer to buy a franchise than to start a new business or buy an existing business?
Many people would prefer to buy into a franchise due to the fact that it is safe, secure, and has a support system to back you. When go into buying a franchise, you are buying a business that has proven to be successful and continue to be as long as it is run correctly. These franchised businesses are likely to be all over the place and it will be easy to get help if needed. You get the advantage of having extensive and proper training when buying into a franchise. Another reason is the risk factor of buying into a franchise which is a low risk versus starting a new startup business with your own money. Franchises usual already have a location that gets great business and employees. The book states that some franchisors provide financial assistance to new franchisees. This is something you dont get with an existing business or starting your own. You also have a legal team at your disposal if something happens in your restaurant versus having to get a lawyer and pay it yourself as a new business owner.
Compare and contrast the advantages and disadvantages of starting a business from the ground up. Be sure to include the different types of businesses in your analysis
Advantages of a Startup Business:
Nobody tell you what to do and you set your own schedule.
Your business can be tailored to give you the competitive edge in your area.
There are no policies and procedures that you have to follow. You make your own rules.
You are in charge of what your business sells, where the location will be, who you will hire, and what your business will look like.
You have the ability to hand pick your own employees.
There is no negativity associated with your name because you are a new business owner.
Being a startup you can be creative in your own ways.
Disadvantages of a Startup:
RISK! New businesses carry the most risk when it comes to startup cost.
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