Subway Jiffy Luffe Or Supercuts

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

I could successfully operate one of the four franchises without having experience owning a business because a franchise “is generally a proven business model … [and] reduces your risk” (Stricker, 2015, P. 74). Figure 5 demonstrates the four franchises’ market share, revenue, and net worth. Furthermore, I could successfully operate Massage Envy without experience, since Massage Envy has the highest market share and a net worth of $500,000. Although I have no experience in operating a business, “franchisors offer extensive hand-holding” that will allow me to succeed” (“Buying a Business off the Rack”, 2013). Moreover, “name recognition” will allow me to succeed and reduce my risk (Stricker, 2015, P. 74). Also, gaining knowledge by experience and from other franchisors will allow me to succeed.

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.

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.

The Subway restaurant chain is marked by its impressive leading global growth. It is the largest restaurant chain in the world. And its foundation and history could be not only a good example for the understanding of business, entrepreneurship and franchising, but also a story which can inspire and awake all of us to new possibilities in our own lives and careers.

In engaging a franchise business, one will face the pros and cons from the business they operate. There are a lot of benefits prospective franchisees can get from Subway, the company provides their franchisees with assistances before and after they open a Subway restaurant. Services provided before opening include an intensive 2-week training, site selection, restaurant design, equipment ordering, and access to product formulas & operational systems. And services provided after opening include, in-depth operations manual, field support, franchise services, research and development, and continuing education (Subway Franchise Training & Investment, Subway Help & Support, n.d.).

Another advantage of a franchise is that you use a recognized business name and reputation also the franchise benefit from advertising or promoting. The franchise has to share all the profit with the franchisor while Tesco which is a public limited company have to share their profit between a great numbers of people. Shares can be advertised and sold through the stock exchange. Another advantage of a public limited company it has more chance to become successful because they have thousand people who working for it, with many skills, idea and experiences. Franchisee is different from a public limited company has it is dependent on the franchisor skills. If the franchisor goes out of business or gets a bad reputation, this will cause problems in the business.

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.

The marketing and advertising advertisements created by the franchisor leave franchisee with more time to focus on the daily operating of business. This is a win-win for both parties. It helps increase sales by means of franchise, which, on the other hand, allows the parent company to collect more fees. (Bernd H. 2008)

In addition, the franchise model allows a business owner to just focus on execution rather than having to constantly scheme with new ideas. Many small business owners fail because they have to be visionaries at all points. They have to see the bigger trends coming in the industry while also thinking of new and creative ways to connect with the needs of consumers. This is all in addition to

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

Franchising is a very important way for companies to grow and it also helps the franchisee giving them support and

At present concept of franchising and management agreements appears to be common in business, because these agreements can benefit both sides. Franchising is one of the most frequently used and wide spread tool for the business development all over the world. This tool contributes to the rapid extension of the different networks of numerous companies, which without its development would have no such chance of success. The most successful franchises connected with the everyday human needs. According to Kathryn Shaw, franchise “is typically defined as a contractual arrangement between two legally independent firms, whereby the franchisee pays the franchiser for the right to sell the product or the right to use its trademarks in a

Opening a franchise requires extensive financial planning through the evaluation of personal finances compared to vital start-up costs. No two franchises incur the same start-up costs, so having a substantial amount of capital available from the beginning is crucial. Franchise costs stem from the desire to open a franchise and the associated target industry. Franchises within the fast food segmentation require food inventory while franchises in the pet care segmentation require pet supply inventory. As a result, franchise entry fees range anywhere from $5,000 to over $5 million. Besides entry fees, franchise owners are required to pay administrative fees for legal and accounting services to

In franchising strategy,the franchisor normally has control(whether have the control) of the distribution method of the product,and franchisee is not allowed to produce the product,it can only acquire the products from the franchisor.And the franshisor can get a certain amount of fee from franchisee for its use of franchisor's brand ,trademark and customer reputation,While franchising could bring a lot of benefits to the manufacturers such as rapid,low-cost market expansion,incomes from franchisee,it also has some disadvantages such as the franchisor has to share profit with