Issuu on Google+

Easy Formation. No legal formalities are involved for setting up the business.(in some cases).

Better control on what is going on in their franchise/business.

The owner owns it all. Will put more motivation into it to make more profit.

Changes can be made easily and quickly.


Less resources. Finances will run out and you will have to borrow.

Unlimited Liability (has to pay debts).

It is not easy to have personal contact with customers and suppliers at the same time.

Uncertainty of continuity, if the owner dies the business dies.


Two people thinking is better than one.

Two people are contributing to pay as oppose to one.

More borrowing capacity.

Better chance to make more income.


The liability of the partners for the debts of the business is unlimited.

The profits have to be shared.

There will be arguments and disagreements.

Since it’s a partnership each partner is responsible for the other’s actions.


More capital can be obtained.

The personal assets of shareholders are not at risk for satisfying corporate debts or liabilities.

A corporation can deduct the cost of benefits.

The built-in stock structure of a corporation makes it attractive to investors.


More tax has to be paid.

A lot more rules.

More time and money is involved.

More paperwork is involved.


Acquiring business finance is generally easier.

Numerous business relationships are already established.

Franchises offer the advantage of a support and security system.

You don’t have to start from scratch everything is already set.


Franchisee has no control of the business or how it runs.

A portion of your profit goes to the franchisor

There is a big cost to buy into the franchise agreement.

There is no freedom, you have to do what is asked.


Type of Business Ownership