Executive Summary : The Franchise Business Expansion

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 franchiser can attain rapid growth for the chain by sign- ing up many franchisees in many different locations.

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.

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

Investors have a decision to invest in a franchise or have complete control over the business, products and employees by creating one’s own business. Many people find franchises carry less risk than the average small business and that it requires far less of their attention (Meaney, 2004). Franchises also offer the familiarity that mass advertising of big brands accomplishes. Small business owners instead must pay for their own advertising and build their own brand image which can take years and cost thousands. Some find this to be reinventing the wheel and choose franchising instead.

Franchising is the practice of the right to use a firm's business model and brand for a prescribed period of time. supplier who allows an operator is introduced as franchisor. Franchisee is the one who consumes trademark of the supplier and deliver the supplier's goods.

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.

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

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.

Combs J.G. and Castrogiovanni G.J., (1993) argued that a franchise is an organization designed to allow franchisors to obtain the resources needed to accelerate the growth of the company, with the aim of reaching a minimum level of efficiency and thus strengthen the brand awareness.

An agreement or licence entered by two parties is known as a franchise. Franchising is a method that businesses use to market and distribute their products. The Franchisor gives rights to the Franchisee to market their brand or product by using their trademark, Franchisors also support Franchisees on an ongoing basis. There are two different types of franchising which are business format franchising and product and trade name franchising. Business Format franchising is when a franchisor offers the franchisee a package of deliverables and services which include the use of their logo and trademark and assistance with site location selection, hiring and training of staff, equipment, design and layout of the store etc. The franchisee has to pay a continuing fee in return for the packaging services that the franchisor is offering and sign a contract. Product and trade name franchising is when the franchisee doesn’t have to pay an ongoing fee

There are several different aspects of Franchises and LLCs discussed including: how Franchises and Private Limited Companies are formed, taxation, profit distribution etc. I have assessed which form of business is more likely to be successful. I have also addressed the three sectors of production; Primary, Secondary and Tertiary. My analysis has led me to the conclusion that the two business models each have pros and cons and that the specific circumstances will determine which is most suitable.

When any company decides to franchise its business, and open up across the United States or the world, they first must consider many things. Will the company be successful in the area they are trying to open? How will they be able to ensure consistency amongst the different locations, to make sure customers experience the same thing no matter what location they visit? What threats and opportunities are there to expanding the business? For companies such as McDonald’s and Kentucky Fried Chicken (KFC), the decision to expand has paid off not only in the United States but also in its expansion throughout the world. Although both companies have become successful and remained, successful for many years it was not always an easy road to success.

One of the greatest indicators of the success or failure of a corporation is their ability to acquire/merge or to be acquired/merged. Companies have been able to maximize their profits by merging or acquiring other businesses within their industry, which has many benefits that extend past dollars and cents. Corporations who are able to acquire or merge with other companies are able to expand upon their ability to forge partnerships with other corporate leaders. They are often able to expand their services internationally to gain more profits and extend their brand. Corporations, such as McDonald 's Corporation, have been able to benefit from acquisitions in ways that corporations, such as Sonic Corporation, have not. Through the evaluation of the strategies that were utilized by McDonald 's Corporation to acquire Boston Market, its impact on the corporation, and its international business-level and corporate-level strategies, one can better understand strategies that Sonic Corporation could develop to increase their profits through acquisitions and mergers, as well as business-level and corporate-level strategies they can develop to expand their services internationally.

In this report I will be talking about how to open a LaRosa’s pizza restaurant franchise. There are many requirements that you have to fulfill to qualify for the franchise. There are 8 steps to open a franchise with them. In the restaurant business, somebody is always trying to franchise "the next big thing.” No doubt you 've seen dozens of them come and go. Doesn’t it make more sense to find a stable and rewarding business concept with a strong track record? (LaRosa 's, franchise). These are the reasons they thought why they should become a franchise. They also think since that since they have been doing been doing well for over 60 years they thought they might just as well allow franchising and broaden their area