Case Study: Starfish Jewellery

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

Advertising money is spent more efficiently (the franchiser teams up with local franchisees to advertise only in the local area).

Franchise is treated as a form of business that is more popular during the present context. Its popularity has to do with its proven track record of success,

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

One of the most important aspects of the business is the franchise component. When starting a business that is going to be a franchise, there are unique elements that must be taken into consideration. These include standardization, and the capability of franchisers to adapt within a standardized format (Kaufman & Eroglu, 1999). An example would be McDonalds, where franchise owners have come up with some of the company's most lucrative products, while simultaneously operating within a strict franchise format.

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.

Does the Franchisor have every strict operating standards and a method by which adherence to these standards is mandated OR does the Franchisor have a more open "freedom within a framework" standards and allow their franchisees the flexibility to make local operating decisions within specific guidelines to maximize the value of their individual business.

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.

Disadvantages of becoming a franchisee include franchise fees, profit sharing with the franchiser, strict adherence to standardize operations, restriction on where to purchase, and less freedom in business decisions (Ferrell, Hirt & Ferrell, 2009). Sometimes the investment in a franchise are expensive and the quality of the product is not the best option causing the risk to be on the franchisee. Lack of brand recognition can cause the franchisee to invest in advertising at a higher rate than needed to get the consumers interested in the product or service.

It has its advantages and disadvantages to franchise the business. It is a careful decision to make for anyone to invest a lot of money into a franchise and everyone should be comparing pros and cons.

When franchising-internationally, there are a number of factors that must be considered before entering that market such as culture, political and legal factors, etc. these have been briefly outlined with relation to Fergburger franchising-internationally.

Franchisors are increasingly having to be more and more selective in the adoption of franchisees with factors such as economic climate and the potential difficulty with growth playing key factors in the decision making process. It is not simply an ability to grow which creates a successful Franchise and nor is it the desire of any franchisor to adopt every potential franchisee. Franchisors are becoming more and more scrutinising as the global economy declines. There is a general understanding within any franchised

Franchising refers to the steps of exercising and using another’s completed business concept. In relationship with franchise, the franchisee is permitted the right to market a product or a service under a marketing plan or a system that applies the name, trademarks and ads owned by the franchisor.

Franchising can be defined as a business venture between an individual (Franchise Owner) and the franchisor (Business Owner), who wants to expand the scale of their business to promote visibility of their particular brand and thus increase market shares. In India, franchising is growing exponentially over the last handful of decades along and the trend seems to be growing at an extremely strong pace. According to the experts, franchise business is probably the safest modes of businesses because it involves lesser investment with greater ROI. That's why increasing numbers of people are actually moving on the lucrative world of franchising.