▶ Your Answer : The reading and the lecture are both explaining about the franchise model of business. The author of the passage insists that franchise is the least risky option for an unskilled business newbie to choose. However, the lecturer casts doubt on every point made by the article, and the reasons are as follows.
First of all, while the author says that franchise greatly reduces effort put to find reliable suppliers, the lecturer has a completely opposite view on this. According to her, most franchise companies force the owner to buy raw materials from a specific suppliers, even though they are way more overpriced than other ordinary suppliers. And in most cases they are not allowed to buy from other suppliers.
Secondly, the writer claims that franchise can also save much money for the advertisement. This point is also rebutted by the lecturer for the following reasons. According to the lecture, 6 percent of total sales should be paid for the advertisement fee. However, compared to the money paid for the advertisement, the benifit that the owner will actually get from it is less than a half of normal advertisement, due to the fact that franchise companies only advertise their own brand, not the specific stores.
Lastly, the lecturer points out that a franchise is not that secure as the writer thinks, because the writer missed the third option available for the first-time business starters. It is buying an existing independent business, and it has been revealed that this option has higher chance to success within four years of starting, compared to the franchise model of business. |