Franchising and Licensing Asia 2010 trade exhibition @ Marina Bay Sands, Singapore

I will be visiting the Franchising and Licensing Asia 2010 trade exhibition, to be held at Marina Bay Sands, Singapore from 21 - 23 October 2010 (Thursday to Saturday) to get some ideas and exposure, and perhaps potential opportunities on franchising and licensing. Admission is free.

Getting a franchise is a good way for starting entreprenuers to learn from an established business model. It minimises the risk of start-up failure by adopting an established business with proven track record. Of course, there is no such thing as a risk free business or investment. The entreprenuer still have to learn and work smart and hard to better his business even through a franchise. Of course, the learning is more structured since he has an established business system (based on the franchisor) to follow.

Advantages of a franchise for starting entreprenuers are as follows:-
1. Benefits of an established business model with proven track record to follow.
2. Learning from operating a franchise is more structured with help from the franchisor.
3. Lesser risk of failure and more stability since there is a guiding business model to follow instead of self-exploration.

Disadvantages of a franchise for starting entreprenuers:-
1. No freedom in managing business creatively since one has to stick strictly to the business operating protocols from the franchisor.
2. Need to pay franchising fee (usually one-off at the start), any other compulsory start-up cost and training cost, and ongoing royalty (certain % of sales revenue) to franchisor.
3. Need to be bounded by a contract to hold the franchise for a long period of time (which is usually at least a good number of years).
4. Any other binding terms of franchise agreement which are more favourable to franchisor to protect its interest.

Although getting a franchise can be a breeze to aspiring entreprenuers in terms of tapping on an established business model with proven track record, there are many limitations that the entreprenuer will be bounded to. So, aspiring entreprenuers need to consider carefully the pros and cons before deciding whether to take up a franchise.