Based on reading franchise is a new license issued that people take for debuting a new business by using of a well-know company's brand: the reading explains that its advantages. The lecture, however, introduces some evidences that undermine such claim.
First, reading points out that any person should pay a huge money for buying raw materials, equipments, etc for starting independent business, while franchise owener support he or she, and person can save a lot of money by elaminating this cost. The professor casts doubt on this point by saying that individuals must buy specific service from franchise owner: it is costly for them, whereas they can debut new business by the help of cheaper plans.
Second, people can save money by using of franchise method for starting a new business since franchise owner spend money for advertising: therefore people can save money, as author claims, is repudiated by the lecture. She mentions that franchise owner gets 6% from totall selling for advertising, while they spend half of this cost in independent business. Also, franchise company advertists its products and brand.
Third, the passage claims that franchise method is so reliable since it reduces risk of failure owing to the presence of rough competition in the world. In contrast, the speaking says that although franchise business is lee risky, there are limited options for people for developing their business reasoning that they failure rating in franchise company is twice of the independent business.
Based on reading franchise is a
new
license issued that
people
take for debuting a
new
business
by using of a well-know
company
's brand: the reading
explains
that its advantages. The lecture,
however
, introduces
some
evidences that undermine such claim.
First
, reading points out that any person should pay a huge
money
for buying raw materials, equipments, etc for starting independent
business
, while franchise
owener
support he or she, and person can save
a lot of
money
by
elaminating
this cost. The professor casts doubt on this point by saying that individuals
must
buy
specific service from franchise owner: it is costly for them, whereas they can debut
new
business
by the
help
of cheaper plans.
Second,
people
can save
money
by using of franchise method for starting a
new
business
since franchise owner spend
money
for advertising:
therefore
people
can save
money
, as author claims,
is repudiated
by the lecture. She mentions that franchise owner
gets
6% from
totall
selling for advertising, while they spend half of this cost in independent
business
.
Also
, franchise
company
advertists
its products and brand.
Third, the passage claims that franchise method is
so
reliable since it
reduces
risk
of failure owing to the presence of rough competition in the world.
In contrast
, the speaking says that although franchise
business
is lee risky, there
are limited
options for
people
for developing their
business
reasoning that
they failure
rating in franchise
company
is twice of the independent
business
.