Pros And Cons Of Frranchising

I am currently in a position in my life where I am working diligently to prepare for my future. While I have a Master’s degree in Clinical Psychology, I have always been entrepreneurial in nature and remain open to any opportunity to better myself personally and professionally. I believe that operating a franchised restaurant business would be an incredible way for personal and professional growth, in addition to helping my

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 franchise marketing is introduced to the business market from quite a long time. It is to be noted that while expanding the business entity over the global competitive market, the local companies sell

When restaurants not do franchise they maintain uniformity in service and quality which can be monitored and evaluated by Corporate using the same standards. The rigidity will ensure consistency for the chain. There are some monitoring costs that emerge when a company decides to franchise its operations. These monitoring costs are costs involved with making sure that employees at the franchisee work hard and follow the rules. This requires hiring supervisors who will monitor the employees, but somebody needs to monitor the supervisors and so forth.

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

Buying a franchise may reduce your investment risk by enabling you to associate with an established company. But the franchise fee can be substantial. You also will have other costs: for example, you may be required to give up significant control over your business while you take on contractual obligations with the franchisor.

An easier alternative to starting a business from scratch is purchasing an already established one. This can be achieved through purchasing a franchise, a business that follows an already established model. Before one purchases a franchise, they must obtain specific information to know whether or not the venture is worth it. One franchise that is growing in popularity is Buffalo Wild Wings. Although it is growing in popularity and success, is purchasing a Buffalo Wild Wings’ franchise worth it?

A good franchise offer training and support as owner will not know how to run Jiffy Lube or Subway without guidance. Franchisor have advantage from buying power and efficiency due to large scale of franchise so they can negotiate lower prices for the products and services needed to run business. The startup cost can have a wide range depending on the franchise, therefore most franchise have financial loan program (Geoff, 2013).

| There are two primary advantages to buying a franchise over other forms of business ownership. First, franchising provides an entrepreneur the ability to own a business using tested and refined business methods, and second:

It has its advantages and disadvantages to franchise the business. It is a careful decision to make for anyone to invest a lot of money into a franchise and everyone should be comparing pros and cons.

Franchising Model - Brand franchising enables the franchisor to share the risk with its partner franchisors, and also to share the capital costs and running costs of developing a network – in the case of McDonald’s a network of restaurants. For the franchisee, buying a franchise is much cheaper and less risky than establishing a comparable size business from scratch. One of the main problems for a start-up business is that of developing the brand and reputation associated with branding. Buying a McDonald’s franchisee immediately provides the franchisee with an internationally known product that consumers are familiar with. The franchisee also buys into established tried and tested systems and products.

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

By buying into a franchise you are gaining the benefit of the franchisors experience as well as the name and reputation that has already been built up by the franchisor. Therefore it is no wonder that ‘according to the U.S. Commerce Department, an estimated 95% of franchises succeed, whereas only 25-35% of independent businesses succeed.’ (http://money.howstuffworks.com) It is also not surprising that franchising makes up for about 3.2 percent of all businesses and 35 percent of all retail and service revenue in the United States, proving that it is big business. Franchising is very often a wise choice because consumers like

"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