Why Franchise? Why Subway

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

This entity supplies to all the master franchises – effectively giving the company a few key advantages:

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 is a broad and a great business tool to deliver goods and services, and to flesh out a line of work. It can have a great effect on investment, but it is also one of the most likely to be misunderstood aspects of a specific project.

In the franchise system, a high level of trust must be given to the franchisee with the belief that they can bring betterment to the brand in the franchisee’s country. The responsibility of identifying credible franchisee lies in the expertise of the franchisor (Mendelsohn, 2004).

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

The benefits of standardisation, as well as the risks should be understood. A top down standardisation of concept precludes the bottom up learning that is necessary to adapt to dynamic markets. Moreover, it is the franchisees - who are close to customers, markets, and employees - who have the most intimate information about changes in demographics, markets, and customer tastes that are most likely to affect the future direction of the business. Yet, these people are precluded from innovating or customizing the concept to experiment or take account of local and/or changing market conditions.

Franchising is also known as rapid market expansion to other parts of the world. Franchise was found in North America. Franchise is usually done well done business for example food outlets. When the brand is well known internationally and also when there are opportunities to make the brand more famous that’s when franchising plays a part.

The purpose of this paper is to shed some light on the concept of franchising from the viewpoint of the franchisor, discuss its different uses taking into account the advantages and disadvantages attached to them, and link these considerations to a firm’s internationalization decision-making process.

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

Franchising is an important and relevant topic for a business plan, especially for a fast food restaurant. Shane & Hoy (1998) claim “Business plans are far more common among franchisors than among independent business owners”. The purpose of this literature review is to critically analyze literature regarding franchising from the perspective of the franchisor. To do this the definition of a franchise should be discussed along with the franchise business model. The management of a franchise should also be considered, exposing the perceived benefits and problems that arise for a nascent franchise business.

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.

A franchise is a right granted to an individual or group to market a company 's goods or services within a certain territory or location. Some examples of today 's popular franchises are McDonald 's, Subway, Domino 's Pizza, and the UPS Store. There are many different types of franchises. Many people associate only fast food businesses with franchising. In fact, there are over 120 different types of franchise businesses available today, including automotive, cleaning & maintenance, health & fitness, financial services, and pet-related franchises. The franchisee must follow certain rules and guidelines already established by the franchisor, and in most cases the franchisee must pay an ongoing franchise royalty fee, as well as an up-front, one-time franchise fee to the franchisor. Franchising has become one of the most popular ways of doing business in today 's marketplace. In most states you cannot drive three blocks without seeing a nationally recognized franchise company.

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

In the business world there are many routes businesses can take to try to ensure a successful venture. There are sole proprietorships, partnerships, limited liability partnerships, corporations, limited liability corporations, S corporations, and then there is franchising. A formal definition of franchising is “a continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offers assistance in organizing, training, merchandising, marketing and managing in return for a monetary consideration” (Franchising, n.d.). In simpler terms, franchising is paying someone for their business, marketing, and operations strategy, as well as the use of their name (Obringer, n.d.). Discussed next are the important roles in franchising.