What Are The Pros And Cons Of A Franchise Owner

The advantage of Arby’s being a franchise is that it has Brand Recognition. Most if not all franchises are well-known companies with established customer bases. Owning a franchise instead of starting up a new business saves you the time and effort of building a reputation and attracting customers. Franchises also receive support from corporate headquarters in a number of areas including marketing, training and even financing. Corporate headquarters of large franchises are ready with advice and expertise for making the business the best it can be. Many companies help

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

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.

Franchisees sign contracts with the company to split 54% of the profits，. The company pays for store equipment, sales banners, equipment maintenance, and many other things. Franchisees pay wages, certain in-store expenses, and are responsible for shortage -- losses due to shop lifting or employee theft.

Introduction Opening up a business such as a franchise can carry many risks, both financially and personally but can also be very rewarding and challenging. Some people make a decent living, some end up rich, then again, plenty of people fail. (MSNMoney, 2014) There are many advantages of owning a franchise. Some advantages are that you have association with a well-established brand, reputation and product or service, access to established standard procedures, operating manuals and stock control systems.

In North America alone, new franchise opportunities are popping up daily, giving these interested individuals a variety of tools designed to grow both their businesses and the studies of their customers. Just like any other venture, though, there are both advantages and disadvantages to purchasing a franchise of a larger parent company.

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.

After buying the franchise the Franchisee has duties and responsibilities have the rights to Operate the franchise as an owner. Also, the franchisee must follow a set of rules that is given by the franchisor. The franchisee must use trademarks or trade dress of the franchise. For example, McDonald’s has a huge M, the golden arches, on their stores and that is the trademark that has to be used, and cannot be changed from the franchisees or it will be a breach of contract that could lead to a huge lawsuit which is not a good thing. The franchise has option to determine when the contract could end. There is a fixed period of time and they even have the option for renewal to keep the franchise growing.

One of the most important things when you start a franchise is to have an ethical framework in which you use to operate your business. Many franchises are members of associations such as the International Franchise Association or the British Franchise Association which both have a code of ethics in place. (Ethical Franchising, 2013). It is made up of codes to ensure franchises that they are working with respectable sources. When code of ethics are developed by franchises, they cannot cover every situation that will arise, but are in place to be a baseline for resolving issues when they come up (Ethical Franchising, 2013).

The role of franchising in national economies is becoming more important by creating employment opportunities and service prevision . Franchising is the fastest growing from of retailing and a major portion of this recent growth can be attributed to the emergence of multi-unit franchising. Multi-unit franchising (MUF) refers to an organizational arrangement where one franchisee operates two or more franchised outlets in the same franchise system. In USA 20% franchisees operate more than half of the franchised outlets. The multi-unit franchising phenomenon can be divided into two categories : sequential multi-unit franchising and area development multi-unit franchising. In the first type one of the existing franchisees is granted a

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.

franchising is tasked on the win-win situation that both parties depend in the business like franchisor and franchisees. Through this, franchisor is allowed

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

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

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