Next we will expose which are the advantages and the disadvantages of this system of commercial association, from two different perspective: the one of the franchiser and the one of the franchise-holder.

22.1. Advantages and disadvantages for the franchiser

22.1.1. Advantages

• It is the best and faster way to develop to an enterprise activity with other people's infrastructure and minimum economic payment.
• It reduces the necessity to have good intermediate controls and to establish permanent controls, since the first one interested in that it works the business is the own franchise-holder.
• Smaller expenses of personnel and control systems.
• Great economies of scale concerning manufacture, purchases and costs can be realized.
• The economico-financial and commercial risk is reduced.
• It allows the opening to new markets.
• Greater rapidity at the time of approaching the expansion plan.
• Greater control of the production, provision and distribution of products or services.
• It can receive ideas and experiences without cost some.
• Creation of a solid image of mark, and of a greater notoriety and is present in the market.
• Really, the tax exemption avoids to the human franchiser two key limitations in its future projection as they are the economic one and resources.

22.1.2. Disadvantages

• Important initial investment, because the conception and beginning of the tax exemption force this first payment.
• Greater complexity in the communication with the different points of sale.
• Sometimes, tense relations with the franchise-holders take place, since the hierarchic dependancy is not the one of head.
• Difficulty to influence in the enterprise behavior of the franchise-holders.
• Cession of know how to the franchise-holders, that in the case of not existing sufficient confidentiality can be problematic.
• Possible direct contact lost with the market and of information on the same.
• Smaller benefit by unit, but majors benefits by more sold units.
• The disadvantages derived from the local air traffic control, that are to exert themselves precise on the franchise-holders.
• The limitations that are had at the time of making certain decisions, by the resistance of the franchise-holder to follow the norms of the franchiser.
• Problems at the time of realizing strategic changes in the business.
• Great risk of disloyal competition.

22.2. Advantages and disadvantages for the franchise-holder

22.2.1. Advantages

• The prestige which it enjoys the mark assures a customer to him from the beginning the activity.
• He is proprietor of a safe business and with resisted results.
• Reactions of the market already undergone through the pilot stores and of the rest of the chain.
• It reduces the risk of any commercial beginning, with very similar economic investments.
• One benefits from the experience and know how of the franchiser.
• Exclusive feature of zone.
• Security in the supplying and economic advantages of purchase since one benefits from the economy of scale in chain.
• Image of consolidated company, which provides major solution against third parties: banks, etc.
• Greater notoriety of mark and commercial image.
• Even concerning a local activity, one takes advantage campaigns and strategies of marketing at national level.
• It receives a initial formation with permanent a formative and informative support and in agreement with the last techniques.
• One takes advantage in his zone of the commerce bottom that has the franchiser.
• Use of computer science programs chords to its needs.
• Really, we can say that the great advantage that has the franchise-holder is the one to obtain the benefits of the great companies properly organized, without losing its condition for being small, being even its own head.

22.2.2. Disadvantages

• Lack of knowledge on means necessary to determine the kindness of the chain.
• Not to immediately perceive or at its right moment the planning or organization of the franchiser.
• Maladaptation sometimes to the philosophy of the franchiser in the different commercial aspects.
• Potential loss of the freedom that to him the propietary being of a commerce would grant, with the consequent loss of enterprise independence.
• Not to be proprietor of the name and trade name that works.
• To be directly related to the luck of the franchiser, depending totally on the management that this one realizes.
• Their contributions of criteria never take place in a consultative level and executive.
• Payment of entrance rights.
• To have to pay part of its benefits of permanent and precise form in the majority of the cases.