The material discusse the concept of franchise. While the reading states that it is better to buy a franchise rather than opening a new independent business, the listening challenges this and mentions that when the study looks closer, it puts this idea in a question.
Fitrst, the author posits that franchise could solve the problem of finding a reliable suppliers. On the other hand, the profesor opposes this and says that franchise companies use specific goods and sevices, which are over prices, and the owner of the business has to use from these suppliers. The lecturer adds that even though there are equilvalent and cheaper suppliers available in the markert, the owner of the business does not allow to buy from them.
Second, the writer points out that fanchise could owners' save money that could be allocated for advertisments. On the contrary, the professor refutes this and states that the franchise owners agree to pay six percent of their sales to the franchise comapany. The lecturer adds that some of this money could return back to owners through advertising. The speaker explains that the franchise companies do not advertise to a specific business, but they advertise for their brands and products, which are sold by many buisnesses at many places. The lecturer adds that the direct advertising for a business could be more beneficial and consume half of this money.
Third, the reading contends that the failure rate of a franchise is much lower than a new independent business. Conversely, the lecturer contradicts this and points out that openning a franchise is more secure than a new business, but it is not the most reliable option. The professor explains that there is a third option, the reading did not mention. The speaker adds that buying an already existing business could have twice chance of sucsess at the first four years as franchise.
The material
discusse
the concept of franchise. While the reading states that it is better to
buy
a franchise
rather
than opening a new independent
business
, the listening challenges this and mentions that when the study looks closer, it puts this
idea
in a question.
Fitrst
, the author posits that franchise could solve the problem of finding a reliable
suppliers
.
On the other hand
, the
profesor
opposes this and says that franchise
companies
use
specific
goods
and
sevices
, which are over prices, and the
owner
of the
business
has to
use
from these suppliers. The
lecturer
adds
that
even though
there are
equilvalent
and cheaper suppliers available in the
markert
, the
owner
of the
business
does not
allow
to
buy
from them.
Second, the writer points out that
fanchise
could owners' save money that could
be allocated
for
advertisments
.
On the contrary
, the professor refutes this and states that the franchise
owners
agree
to pay six percent of their sales to the franchise
comapany
. The
lecturer
adds
that
some
of this money could
return back
to
owners
through advertising. The speaker
explains
that the franchise
companies
do not advertise to a specific
business
,
but
they advertise for their brands and products, which
are sold
by
many
buisnesses
at
many
places.
The
lecturer
adds
that the direct advertising for a
business
could be more beneficial and consume half of this money.
Third, the reading contends that the failure rate of a franchise is much lower than a new independent
business
.
Conversely
, the
lecturer
contradicts this and points out that
openning
a franchise is more secure than a new
business
,
but
it is not the most reliable option. The professor
explains
that there is a third option, the reading did not mention. The speaker
adds
that buying an already existing
business
could have twice chance of
sucsess
at the
first
four years as franchise.