Opportunities And Threats Of MOFSL

The business that I want to open would be a franchise of a McDonald’s restaurant. McDonald’s is a fast-food restaurant that serves a variety of products, but is mostly known for its

Some of the common weaknesses the franchise is facing include, work inefficiencies at the franchise, technologies which are deemed as outdated and high staff turnover. Additionally, the franchise also experiences problems in relation with bad acquisition, tarnished reputation due to occasional poor services and outdated technologies. In some cases, the franchise also experience problems in relation to high debt

“Becoming a franchisee is an odd combination of starting your own business and going to work for someone else” (Schlosser 94).In Eric Schlosser’s Non-fiction book, Fast Food Nation, Schlosser reasons that fast food has widened the gap between the rich and the poor, started an obesity epidemic and propelled American cultural imperialism abroad. While the idea of a franchiser/ franchisee relationship appears to be nothing but beneficial, it has a serious drawback, which is the release/ acceptance of certain issues out of each party’s control. This, in turn causes other companies to try to develop new ways of forming this relationship. Subway, for example uses “Development Agents” to help ease tensions.

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

1b) What advantages are there to not franchise the restaurants? Do you think they ought to franchise restaurants down the road? What advantage would that be for the company?

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

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 restaurant commits itself to franchisees and stakeholders in helping to achieve superior financial results and sustainable performance and development opportunities. Thus, the corporate mission and its core values are instrumental to the company’s success.

Lastly, since the company controls the real estate of most of its franchise restaurants, overseeing and directing all aspects of real estate is a critical core competency.

Panera bread’s growth strategy was to capitalize on Panera’s market potential by opening both company-owned and franchised Panera Bread locations as fast as was prudent (A. A. Thompson). Panera Bread work closely with franchised branches in order for the company to broaden its market penetration (A. A. Thompson). Panera Bread has taken the appropriate measures to gain a competitive advantage to make franchising a successful market for the company to enter. Considering Panera Bread Company keeps interaction with the franchised branches to ensure success gives them the upper hand to ensure continued success.

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

Not having to answer to a corporate boss is the dream of many and the flexibility that owning a business franchise creates provides this option. Success is not reached by simply creating a business, however. The level of success is measured by the size and efficiency of the business. Business growth is the driving force of the economy. The additional jobs and revenues created when a business expands allow the economy to grow at exponential rates. One of the fastest and most popular ways to increase the size of a business is to turn it into a franchise, which can then be purchased by individuals. Franchising provides opportunities that are beneficial to both the parent company and the purchaser. The company that owns the business can expand

fastest growing areas in franchising. Numerous systems are learning that they’re significantly more effective in presenting their products and services to the public when they do so in association with another brand.

‘As a result, expansion can proceed at a much faster pace than would otherwise be possible, enabling the franchisor to achieve increased market share whilst benefiting from economies of scale.’ (http://www.butterfield.co.za) Finally, franchisors can benefit from the cultural knowledge and know-how of local managers. This can be helpful in lowering the risk of business failure in unfamiliar markets, as well as creating a competitive advantage. Franchising offers franchisees the advantage of starting up a new business quickly based on a proven trademark and way of doing business, as opposed to building a new business from scratch. The franchised business is based on a proven idea and has an existing customer base, therefore making it much easier to sell your product than it would if you were to start up your own business.

According to me a franchising is an arrangement in which one party the franchisor allow another party the franchisee the right to use its trademark, company’s name as well as certain business systems and processes, to produce and market a good or services according to certain condition.The franchisee pays one time franchisee, royalty and profits.It helps franchisor to expand his business. Assistances provided to franchisee by franchiser are Marketing, management, advertising, store design, standards specifications etc.