MultilinkWorld has been the most accomplished and active franchising company all over India since ever established. Mos Utility Pvt. Ltd opinionated “Running franchising company may not be easy as easy as it seems like because operating with numerous of agents could be chaotic and the business involves some risks also.” However, MultilinkWorld Review some risks which your franchising business may face.
1) Controlling Risk :-
In franchising business, franchise remains under the risks of losing control over franchise referred as “controlling risk.” There are number of situation which resulting franchisor losing control over the business completely and it becomes difficult to recover later. Franchisor may lose control due to disagreement by franchisees and franchisor does not hold the authority to take action against them.
2) Risk of Personal Interest:-
For franchising business, it is significant that franchisees have a personal interest in the department they are operating in reason being franchisees are essential and play as major role as franchisor do in franchising business. However, lack of personal interest in franchisees result in variation of profit and sales because agent with lack of personal interest will be out of motivation or desire to attract customers.
3) Business Risk:
Business risk is also defined as “competition risk” which consists of entry of new sellers in the franchising market. Entry of new franchising business generates competition between existing and new businesses. However, to avoid this risk, MultilinkWorld review “franchisors must plan or formulate policies related to competition risk as provisions.”
4) Working Capital Risk:-
Franchising business usually holds the risk of being out of working capital for operating purposes not only at franchisees level but franchisors too. In order to variate this risk, franchising business can opt for creating a provisional fund which can take into use if the business may face the situation of lacking sufficient working capital.
5) Franchising Risk:-
Franchising risk defined as a situation in franchising business which may consequently holds the chances of turning into conflict between franchisor and franchisees. However, in order to variste this risk, franchising business should hold a common mission and vision along with a motivational and cooperative leader or franchisor and staffing of franchisees who hold personal interest in franchising in spite of only money being the motive.
These were the various risks involve in franchising business. Directors of Mos utility pvt. ltd suggests “franchisors must be cooperative with franchisees as franchisees are also significant part of franchising business and conflicts between franchisor and franchisees may damage the business completely sometimes.” For any further information you may visit “Mos Utility” official websites and also get registration information at website or can leave query at MultilinkWorld Review.
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