tpo ex.

The article states that starting a franchise business has many advantages over starting an independent business, and provides three reason of support. However, the professor explains that the recent study starts to question the benefits of franchising, and refutes each of the Author’s reasons.

First, the reading asserts that the independent owner has many problems in finding a reliable suppliers of goods and services that he needs, while the franchise owner uses the same supplier as the main company. The professor opposes this point by saying that the main company forces the franchise owner to use the same supplier even though it might charge him more than other suppliers in the market.

Second, the article posits that opening a franchise business can save the owner a lot of money on advertising. On the other hand, the professor contends that the franchise company needs to pay 6% from their revenue to the main company for advertising. According to the professor, the main company won’t advertise each franchise business specifically but it advertise its own products. So, it will bring less benefits than doing the advertising by their own and it might cost much less than 6%.

Third, the reading claims that opening a franchise company offers more security than opening an independent one. The professor refutes this point by saying that this option is not the most secure one as the article mentions. She adds that, there is a third option which has more security, you could buy an existent business. The study show that buying an existent business is secure twice the time than opening a franchise business.