A Business Plan For A Fast Food Restaurant

A franchise is a legal agreement between franchisers and franchisees that consents use of the franchise’s trademark and trade name or marketing plan

1. Franchisees gain numerous advantage when they purchase a franchise. First, while a franchisee may be opening a new store, it is part of an already established business and system. This means a franchisee has access to turnkey operations, allowing an increased speed to establishing and growing the business. Franchisees also get support for management and training activities, as well as financial assistance. Going hand in hand with this, a franchise already has an established brand name, quality of goods and service which have been standardized across the franchisor’s larger company, and national advertising programs from franchisors. Franchises also have large-volume, centralized buying power. A franchise has proven products, and

The first choice of business is the franchise. In a franchise, legal binding agreement is entered into between two firms, the franchisor (the product or service owner) and the franchisee (the firm to market the product or service in a particular location). The franchisee pays a certain sum of money for the right to market this product” (Rubin, 1978, p.224). The franchising is more prevalent in the restaurant industry (Hoffman & Preble, 2003). The two distinct features of this business type include; first, in order to notable service components should

Franchising is a business model that allows companies to rapidly expand their market share. According to Franchise.com (2015), there are three types of franchises: distributorships, trademark licensing, and business format franchises. When two organizations enter into a distributorship, the originating company provides the rights another company to sell their products. An example of a distributorship is when an auto manufacturing company grants rights to a dealership to sell their vehicles (Franchise.com, 2015). Trademark licensing is when one company allows another company to use their trademark (Franchise.com, 2015). The business format franchise authorizes franchisees to sell the parent company’s products and/or services as well as utilize their business model. This type of franchising is the most common and is the type needed to obtain to open a new Cold Stone Creamery.

Franchising is simply a method for expanding a business and distributing goods and distributing goods and services through a licensing relationship. In franchising, franchisors not only specify the products and services that will be offered by the franchisees, but also provide them with an operating system, brand and support. (Franchise.org, 2016)

Introduction Opening up a business such as a franchise can carry many risks, both financially and personally but can also be very rewarding and challenging. Some people make a decent living, some end up rich, then again, plenty of people fail. (MSNMoney, 2014) There are many advantages of owning a franchise. Some advantages are that you have association with a well-established brand, reputation and product or service, access to established standard procedures, operating manuals and stock control systems.

Franchises are across the world and their growing. places such as McDonalds,7eleven and Burger king have been around for a while, and will continue until the day the world dies. A franchise is a business relationship in which a franchisor grants a license to use the name of the business calling him the franchisee. To become a Franchise is not an overnight task Capital has to be raised to purchase a franchise. Most franchises can be up to one million dollars or more. After raising capital, a franchise can be purchased, but there are rules and regulations that must be followed. Franchisees have duties and responsibilities they have to account for. Then the franchise agreement that needs to be followed to the letter.

Franchising: it is a relationship in which the owner of the business allocates to independent individuals the right to market and deal out the goods or service, and by using the business’s name for a fixed period of time. ".

1. A Franchise is when a franchisor of a business gives the franchisee of another business the right to supply its product or service under the same brand identity. Specsavers is a very successful franchise for example.

An entrepreneur is someone who sets up their own business and take on financial risks in hope of making profit. There are many skills that an entrepreneur would have, some of these skills include focus, resilience, self-reliance, ability to learn, ability to sell and the ability to take on risks (Forbes, 2013, online). A franchise is an arrangement between the franchisor and franchisee where the franchisor will give the rights to the franchisee to use its trademark/trade-name and some business systems to produce and market a good or service. There are two types of franchises, one is product distribution is where the trademark and logo is provided although the business systems are not provided. Another type is a business format franchise is where the product and trademark is used alongside the franchisee conducting the business itself such as the marketing plan and operations manual (An Introduction to Franchising, 2001, pg.2, eBook). This essay will be discussing the advantages and disadvantages of an entrepreneur buying a business format franchise. Some points that will be discussed in this essay are the costs, the level of support and certain restrictions when buying a franchise.

Franchisees are normally well established as part of the local community, either on a personal level or as a result of their past business activities. This can give them a very significant advantage in gaining new business for the franchise at a local level. They will generally live within the franchise territory, be known there and will be seen as having made a permanent commitment. The franchise system can provide a very cost-effective route for business development, but only provided that the original business is successful and that the franchisor is willing to invest sufficient an attractive franchise opportunity. The benefit of self-financing business units and a simplified management structure as

Unlike starting a new business from scratch, many new business owners decide to buy a franchise. They get a proven business model, the buying power of a large chain and consumer awareness of a large brand.

Davies J. (2015, p. 62) adds that “a franchise is generally a form of business organization in which a franchisor as owner of a trademark or trade name conveys to one or more independent entities, the franchisees, the right to market a product or service, usually within a specified geographic area and subject to a number of franchisor-imposed constraints. The wider franchise system is essentially a virtual organization comprising

According to International Franchise Association (IFA), ‘‘a franchise is the agreement between two legally independent parties which give a person or group of people (franchisee) the right to market a product or service using trademark of another business (franchisor)’’ (IFA, 2015).

There is legal framework in franchising and the there my rise a legal difference in different countries thereby bring some operational challenges in some geographical locations. Franchise agreements will therefore dictate how the franchisor and franchisee run the business in a foreign nation thereby limiting creativity in the