Chapter 4 Franchising and the Entrepreneur

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Chapter 4 Franchising and the Entrepreneur Introduction Franchising is an important part of American business and this powerful distribution and marketing system is also influencing the global economy. Franchising can be traced to Civil War times, when Isaac M. Singer devised a more efficient, less expensive way to sell his Singer sewing machines through franchised outlets. Retail outlets dominate franchising, but increasing demand for consumer and business services is producing a boom among service-oriented franchises. The Franchising Boom! Franchising has experienced exponential growth rates in the United States and abroad and its growth in recent years is phenomenal. Franchising is a major reason for U.S. business growth and…show more content…
Franchisee have access to a brand name business system with management training and support. This may also offer the benefit to be affiliated with a national advertising program. In some cases, financial assistance is available. The franchise provides direction and support with the expectation of a higher success rate for the entrepreneur. Benefits of Franchising In a franchising relationship, each party depends on the other for support. The ideal franchising relationship is a partnership based on trust and a willingness to work together for mutual success. The franchise knows that their success depends on the success of the franchisees. Franchisees get the opportunity to own a small business relatively quickly. The benefits of franchising include: • A business system One major benefit of joining a franchise is gaining access to a business system with a proven track record. In many instances, franchisers provide their franchisees with turn-key operations, allowing them to get their businesses up and running much faster, more efficiently, and more effectively than if they launched their own companies. The Story of Lori Somley. As a single mother trying to support her 4 children, Lori Somley was intrigued with the idea of becoming an entrepreneur and decided to purchase Curves International, one of the fastest-growing franchises in the nation. Having no business experience, she knew she needed a franchise system that provided her with a solid

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