Five Guys Business Analysis

In 2002 only way one would know about Five Guys is if he/she lived in either Maryland or Virginia, or if they were visiting of course. Yet, to date, Five Guys just expanded its burger industry to the United Kingdom. In efforts to stay afloat during the current recession, Five Guys opened its business to franchising – resulting in Five Guys taking the burger fast food chain by storm. In this paper we will look at Five Guys philosophy and how it sets it apart from other fast-food chains, Analyze the original values and how it remains strong today, discuss three factors that contributed to Five Guys’ success in such a short

Also, these large corporations contain uniformity of products and continue to have a brand recognition built in upon opening a new location of a franchise. An already established customer base will already have a need for the product and flock to a new location because they know exactly what they will be getting each time they visit. Customers know that when they visit McDonald’s for instance, the hamburgers will always taste the same, just how they remembered it. These franchises have a proven format to bring in capital and keep the business successful as well as corporate quality control standards to ensure continued business.

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.

Despite the many success stories, there are potential drawbacks to owning a franchise, be they due to the policies of certain franchise corporations or the simple fact that this type of arrangement may not be optimal for you personally. No matter what, it's vital that you examine all aspects of this commitment, including the negatives:

“US Fast Food Market Outlook 2011-2014” also emphasized the important of fast food and its growth potential that exceeds the growth of overall restaurant industry. It also focused on the propensity of many food companies to push into new markets in the global scale to increase their profits. (RNCOS E-Services Private Limited, 2011).

By joining a national network of franchisees, franchisees are becoming part of a large group of buyers with the ability to negotiate preferential prices from suppliers and generate other economies of scale, such as in delivery charges. Franchisees may even be able to secure exclusive access to a product or service.

A franchise is a right granted to an individual or group to market a company 's goods or services within a certain territory or location. There are companies that fall up under the franchise umbrella such as McDonald’s, Subway, and Pizza Hut. Many people think of restaurants or fast food businesses when they think of franchise. There are over 120 different types of franchise that consist of automotive, health and fitness, financial services, and cleaning and maintenance, just to name a few. Scenario: A person is interested in starting a business and would like to own a Taco Bell. The best form to use is the franchise. This would require the owner to buy into the franchise.

What does everyone assume when they hear the words burgers and fast food? The two responses that are mostly heard are McDonalds and In-N-Out. The ideal fast food restaurant has to satisfy the three critical categories: value, atmosphere, and food. Both restaurants are well acknowledged, but only one is familiar worldwide. The golden “M” for McDonalds is known worldwide, while In-N-Out is only located on the West coast of the United States. No one goes to both places and thinks about getting a grilled salmon salad with light vinaigrette dressing on the side. What you crave from these fast food giants are the massive juicy burgers and fries. Both restaurants are recognized for having famous burgers, although they both have completely different characteristics when you get down to the nitty-gritty.

Opening a franchise brings a brand name and materials to a business to produce instant recognition and bring in brand loyal consumers. A franchise creates a business relationship with a franchisor to bring a brand name, trade dress, and trademark to a franchisee (Kubasek et al., 2015, p. 431). In turn for the franchise material and name, the franchisee pays a percentage of sales to the franchisor (Kubasek et al., 2015, p. 431). As reported in 2011, franchising was so popular that it was the genesis of one of every 12 retail businesses in the United States (Welsh, Desplaces, & Davis, 2011, p. 4). A weakness of owning a franchise was reported by Perrigot, Hussain, and Windsperger (2015) where “franchisees have to strictly follow operating manuals and almost all of the strategic decisions are made at the franchisor level” (p. 696). Although it does have a curtailed degree of freedom, a franchise brings greater stability with a proven business style and support system.

That’s the beauty of franchising. Franchisees enjoy the benefits of specialist help when it comes to marketing, product development, computer systems, suppliers and much, much more. A good franchise gives the small business owner the chance to compete with the big boys. No wonder it’s so popular with New Zealanders.

It is common for people to think of franchising as an industry, and although it can be considered to be an industry, it can also be seen as a “business model”. Dr. Vinay Garg, a professor at Missouri State University took time researching franchising benefits and strategies. Garg has studied and surveyed over 1000 franchise businesses. He found that franchising could be a great opportunity for any individual to become an entrepreneur by starting his or her own business. Since franchisors such as McDonalds or Dunkin Donuts is well known to the public, the franchisee will find it less difficult to bring in customers (Mostyn).

Before discussing what would make a just franchise opportunity, franchising itself must be defined. There are a variety of definitions as to what franchising is. Most of these definitions come from formal bodies such as the European Franchise Federation or the British Franchise Association (Webber, 2012). The issue with all the definitions provided by such bodies, even if they are fit for purpose, is the fact that each one of them misses out on main elements that combine to define franchising (Webber, 2012). The main concept of franchising is where a franchisor grants an individual with rights to their company to do business over a certain period, to which the individual (the franchisee), must pay on going fees to retain the rights to the business (Elango and Fried, 1997). However, there is much more to a franchise than simply

"Franchising is the wave of the future," according to the U.S. Department of Commerce. John Naisbitt writes in Megatrends that "Franchising is the single most successful marketing concept ever." Nowadays, McDonald’s Corporation has 36,368 restaurants around the world. McDonald’s has established its success based on a widespread practise in capitalistic societies, known as franchising. Many entrepreneurs (the franchisees) have chosen to acquire a franchise to access the knowledge, the trademark, and the processes of a corporation (the franchisor); in order to sell a product, or provide a service under the business’ name. In return, depending on the franchise contract, the franchisee usually pays additional money for the start-up of his company, and annual licensing fees. Franchises are extremely popular among entrepreneurs who wish to operate in highly competitive industries, such as fast-food industry. In fact, franchises’ biggest advantage is trademarks. Through franchising, entrepreneurs gain access to an established company’s brand name, already known by the customers. Also, the franchisor often provides assistance before and during the life of the franchise. Of course, success is not guaranteed, and work and talent have to be invested to attain profits. Many americans have achieved wealthiness through franchising. Thus, despite the fact that some entrepreneurs who attempted this endeavor have not been so fortunate, and eventually declared bankruptcy, I strongly believe

Buying into a franchise business is a very serious decision for any business person. When you buy into a franchise you can pretty much be guaranteed that the goods and services you are selling will have almost instant recognition. The buyers of a franchise also receive training and support from a proven business model designed to help the franchise owner succeed. Even though there is a proven business model at work, buying a franchise is still risky and there aren’t any guarantees of success. Buying a franchise is an investment and like most investments there is a risk that the business owner will lose money on his/her investment. This research paper will examine the ins and outs of business

Franchising is defined as a business model wherein the owner of the business (franchisor) gives the independent operator (franchisee) the right to distribute his product, apply his business techniques and use his brand and/or trademark in the conduct of the business. With such a business model, the business owner can maximize their business’ profit potential in a shorter time compared to other more traditional business models. In franchise business, it is not only the products or service that the franchisee can avail; it is more of the system-the business plan of the chosen franchise. It is fact that before franchise companies offer their business packages, they already conducted strenuous