Essay

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 franchising is the chain of any particular business to run by diverse firms or affiliation successfully. The franchiser grants working their business attach to franchisee under franchiser 's term and condition. Assorted foundations business has different term and condition for its franchisee. Franchising business generally run in the regular lifestyle industry like McDonald 's, pizza cabin, domino 's, Subway at cetera. Some franchising chains similarly run in the organization gives efficient Western Union, Money gram, Post Shop et cetera. The greatest relationship of franchising is Subway restaurant

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

The operating results of the franchising stores were not disclosed in the company¡¯s financial statements, except for the system-wide store revenue. From the data of annual report, we understand that the total of all franchising stores increased significantly from $152 million in 1993 to $383 million in 1994. However, we have no ideas whether such stores were making profits or not. The profitability of the franchising stores was directly related to the recoverability of Area Developer Financing (¡°ADF¡±). The total of amount of ADF was $201 million, for which Boston Chicken made no allowance as of Dec 25, 1994.

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.

In North America alone, new franchise opportunities are popping up daily, giving these interested individuals a variety of tools designed to grow both their businesses and the studies of their customers. Just like any other venture, though, there are both advantages and disadvantages to purchasing a franchise of a larger parent company.

This Literature review explains if a franchise is high or low risk way of entering into a market. It also explains whether a franchisee is suited for a certain franchise. Franchises can be seen all over the world, with everyone being introduced to them, as consumers, from a young age (Longenecker et al., 2011). Thomas and Seid (2000) agree with this and believes due to it, people think they understand a lot more about a franchise than they actually do, creating myths about the rate of success and the ease of entry. Antitrust Law and Economics of Product Distribution (2006, p.5) defines a franchise in a 3 part way as, “(1) a franchisee (a) offers, sells or distributes a franchisor’s goods or services, which are identified by

The Advantages and Disadvantages of Franchising in France 1 Running head: International Trade: Licensing and Franchising The Advantages and Disadvantages of Franchising in France Presented by: Deon E. Boswell Of Team McWorld University of Maryland University College AMBA606 November 4, 2005 The Advantages and Disadvantages of Franchising in France 2 Executive Summary The tremendous growth in franchising over the last decade can be traced directly to the explosion of growth in international trade and globalization. As organizations, attempt to enter new markets they are finding that direct investment via subsidiary creation is an expensive proposition and that their capital expenditures could be used for other opportunities

Firstly, I would like to put some light on the trade market that was there is late 1800s and early 1900s. This was the time when businesses used to trade within their countries only. Slowly businesses started growing. This was the time when the entrepreneurs started trading globally. Hence, in 1950s the growing of businesses internationally was termed as ‘Globalisation’. Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange (http://www.bbc.co.uk/schools/gcsebitesize/geography/globalisation/globalisation_rev1.shtml). Globalisation has increased trade internationally. Firms which were national firms are today Multinational Companies. Globalisation has rapidly increased in the last 50 years. Hence globalisation has resulted in increasing demand of the products, hence benefiting the economies of scale. As there is an increase in investment by the companies, there is sharing of knowledge and technology between the countries. It has also helped to reduce unemployment all around the world. But like everything, globalisation also has its disadvantages. As countries are becoming more and more dependent on each other, a bad economic shock in one country can affect the economy of other countries as well(http://www.economicsonline.co.uk/Global_economics/Globalisation_introduction.html). It has also

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.

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 has always been an effective and efficient means of expanding businesses and there is a firmly established franchise market in the United States and the United Kingdom. Franchising offers several advantages, such as relatively unsaturated markets, transitioning economies, free-trade zones, friendly business laws, and liberalized markets and most of which come from emerging markets. Lots of multinational companies have chosen to franchise as a means to enter the emerging markets because it is governed by a contractual agreement which provides a desirable competitive advantage. (e.g. Paswan and Kantamneni, 2004; Alon, 2004). Trying to Explain the extraordinary growth of restaurant franchising within the United Kingdom and the United States has been one of the major focuses in the academic franchising literature over a couple of years. In the United States, United Kingdom, Canada, and some other parts of Western Europe, restaurant franchising has attained domestic market saturation, consequently, emerging markets stay relatively unexploited. The establishment of Restaurant franchising in emerging markets is primarily within the last 20-30 years through corporate franchise agreements and master franchises, and to some extent, conversion franchising and joint venture franchising (Alon, I., Falbe, C.M., and Welsh1

The role of franchising in national economies is becoming more important by creating employment opportunities and service prevision . Franchising is the fastest growing from of retailing and a major portion of this recent growth can be attributed to the emergence of multi-unit franchising. Multi-unit franchising (MUF) refers to an organizational arrangement where one franchisee operates two or more franchised outlets in the same franchise system. In USA 20% franchisees operate more than half of the franchised outlets. The multi-unit franchising phenomenon can be divided into two categories : sequential multi-unit franchising and area development multi-unit franchising. In the first type one of the existing franchisees is granted a

ABSTRACT Franchising is a major trend in the hotel industry. Despite the fact that almost two-thirds of branded hotels in the U.S. are franchised, there is a lack of empirical research on franchising in the hospitality industry. In this article, I reviewed one of the most relevant lines of research in franchising literature, usually referred as creating franchising systems, and we have concentrated on analyzing the reasons and motivations to use franchising from franchisee perspective within the

Single product or Service Operations- In this type of franchise, the franchisee would only be answerable for running one business. However he or she would be extremely involved with all of the daily operations of the business. Example: Starbucks coffee shop.