Sonic: O. Ferrell, Hirt, & L.

Established in 1953, Top-Hat Drive-In, now known as Sonic is the largest drive-in fast food chain. It is known for its 1950’s style and wide variety of food, shakes, and drinks. This sets Sonic apart, giving it a competitive advantage over the other fast food chains (Ferrell, Hirt, & Ferrell, 2009).

Schlosser tells us about how many companies expand their businesses by selling franchises. Selling franchises has been successful for many companies such as McDonald’s, Subway, and many others were able to expand using this route. In fact, some fast food companies open up some many franchises, that whenever the same restaurant is opened close to another one, that managers complain of losing business. Another thing the books informs us on is that when a franchise doesn’t work out then the fast food company has no choice than to close that area. Subway does this very often and is called “The worst franchise in America”. Next, the book talks about economics. There is a lot of risk taking when it comes to being a franchisee for a fast food restaurant. People who would like to become future franchisees can spend almost 1.5 million dollars just to become one. Before purchasing a franchise, people have to consider whether or not it will be worth the money, because if it doesn’t work out there is no way that

Franchise is treated as a form of business that is more popular during the present context. Its popularity has to do with its proven track record of success,

* Franchise: In a franchise operation, the Franchiser licenses the rights to its name, operating procedure, etc. to another business, the franchisee. A franchisee basically buys a licence to operate a ready-made business. Some advantages are bargaining power with suppliers and a high success rate. Some disadvantages are big businesses don’t always make a profit, owning a franchise makes it difficult to get out of.

Licensing and franchising the brands allows them to increase their geographic footprint and brand recognition. The business also generates additional revenues without incurring significant additional expense, capital commitments and many of the other risks associated with opening new company-owned restaurants.

Franchises are across the world and their growing. places such as McDonalds,7eleven and Burger king have been around for a while, and will continue until the day the world dies. A franchise is a business relationship in which a franchisor grants a license to use the name of the business calling him the franchisee. To become a Franchise is not an overnight task Capital has to be raised to purchase a franchise. Most franchises can be up to one million dollars or more. After raising capital, a franchise can be purchased, but there are rules and regulations that must be followed. Franchisees have duties and responsibilities they have to account for. Then the franchise agreement that needs to be followed to the letter.

According to the results of a study by Gruenhagen and Mittlestaedt (2005), the area developer multi-unit franchisees reported that they considered (at the time of taking up franchise agreement) their venture as an investment. On the other hand sequential multi-unit franchisees reported that they were mainly motivated by their entrepreneurial ambitions. Weaven & Frazer (2006) also investigated the motivational factors of single unit and multi-unit franchisees. The findings suggest that single-unit franchisees consider marketing strength of the franchisor brand, potential to employ family members, initial training days, and the level of operational freedom to assess the franchise offer. On the other hand multi-unit franchisees place more emphasis on the importance of business vision and concept, potential for expansion, ongoing training, involvement in decision making process and governance structure. Dant et al (2009) compare the motivations of single unit and multi-unit franchisees and found significant difference among the two groups. They also investigate the change in the motivational factors when single unit franchisees become multi-unit

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.

Sometimes the costs we spend for the franchising may be huge than if we begin our own one from the scratch. Because we may have to pay for marketing, advertising and agreed percentage of our sales than the initial cost. Then sometimes they will go for loans for further development. If the franchise go for down. It will

A negative aspect of choosing to franchise one’s business is that there is a lesser degree of control. Although franchisees are generally given guidelines and rules about the “franchisor 's operating procedures, the units are owned by entrepreneurs and not the company. The franchisee is ultimately responsible for profits and losses, so he may decide to implement

After ten years in the corporate world, I am ready to start my own business. Although I do not have experience in starting a business, I have knowledge in sales, marketing, management, accounting and finance. Owning a franchise business will allow me to gain knowledge by experience and from other franchisors. Attached is four specific franchises I have carefully chose from the nutrition, children 's fitness, health and beauty categories that I could successfully operate without having experience in owning a business. There are many fields available in the franchises business. I have chosen Massage Envy, Jamba Juice, GNC, and Gymboree Play and Music as the four best franchise options that I could operate successfully. In addition, this report demonstrates the four franchises and how they are examined according to the nature of the business, the financial requirements, the level of support the company provides, and the locations in which the franchises are available in each of the four franchises. Furthermore, secondary research, and a compare and contrast to each of the franchise 's competitors are based on the four criteria is included into the report.

Making the decision on whether to go forward with a start-up verses purchasing a franchise can be a difficult one. Many factors have to be considered in order make the best sound decision for that individual. Thankfully, many resources have been established so that research can be found easier. “There are also many options as far as entrepreneurial ventures are concerned. One of the most common decisions entrepreneurs face is whether they should start up their own business or invest in a franchise. While both opportunities involve various amounts and types of risk they also hold the potential for individual benefits as well.” (Get Busy Media) Below is research that shows the

The franchisees also will have to run their businesses themselves. This will reduce the management demands placed on the franchisor. The best franchisees will be highly motivated and have local expertise. This is the one of the best elements of the franchise system where the franchisees will have to personally spend their money, time and

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.

Individuals want the benefits of a franchiser 's name recognition, network, systems, training, and infrastructure to help establish and grow