What Form Of Business Configuration ( Franchise Or Limited Liability Company?

As a hybrid of partnerships and corporations, LLC’s provide limited liability for debts and flexibility to be taxed as a partnership or corporation (Staring and Naming a Business Presentation, 2012, Slide 5). Some specific advantages include being empowered authorities in the management of the business, diversity of members, limited liability, pass-through taxation, and less paperwork (appreciated by many). A drawback of this business structure is the need for a tailored operating agreement that specifies the specific needs of the

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

Limited liability: the liability of investors is limited to their personal investments in the corporation.

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

One of the key similarities between these two types of ownership is liability. The franchise and public limited company have limited liability. This means protections of their shareholder from losing their personal finances if the company goes bankrupt. If the company fail they only lose their invested money in the business. If business wants to become a limited liability can it be complicated and expensive to set the business, decisions can take longer and it takes a lot of legal requirements.

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.

What attracts most people to an LLC is the limited liability for the actions and debts of the franchise.

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

It’s first important to understand some of the responsibilities of a franchise owner. In general, a franchise owner is responsible for a specific location, or branch, of

Ongoing sharing of profits between the franchisee and franchisor. Franchisor and the franchisee always share the profits.

According to Daniels(2004), franchising is a specialized form of licensing in which the franchisor nor only sells an independent franchisee the use of the intangible property (usually a trade mark or patents) essential to the franchisee’ business but also operationally assists the business on a continuing basis, such as through sales promotion and training.

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

It is the authorization or a license given to an individual or a group by a government or company allowing them to carry out commercial activities. Examples of franchise would be providing a broadcasting service or acting as an agent for a company’s product. Franchising is one of the three strategies that businesses use to gain market share. Companies that want to give a good image of their products to their customers, use franchising. It is also a method used to satisfy customer needs. An advantage of franchising would be, having a certain level of independence.

In this report I will be talking about how to open a LaRosa’s pizza restaurant franchise. There are many requirements that you have to fulfill to qualify for the franchise. There are 8 steps to open a franchise with them. In the restaurant business, somebody is always trying to franchise "the next big thing.” No doubt you 've seen dozens of them come and go. Doesn’t it make more sense to find a stable and rewarding business concept with a strong track record? (LaRosa 's, franchise). These are the reasons they thought why they should become a franchise. They also think since that since they have been doing been doing well for over 60 years they thought they might just as well allow franchising and broaden their area

The idea of franchising has been a thought that dates all the way back to the middle ages when landowners would grant peasants to hunt, hold fairs, and hold markets on their land. It was not until 1858 that franchising became an important industry. Today, franchising is still one of the largest industries in existence (“The History Of Franchising,” n.d.). Franchising is an agreement between a party (Franchisor) who gives the privilege to another individual (Franchisee) to own, manage, and run his or her business in another place with certain expenses that the franchisee is responsible for and laws that the franchisee must abide by.