Franchising

Introduction Consumers regularly encounter franchising in the service sector. Whether purchasing food, staying at a hotel, or buying gas, franchising is prevalent across much of the consumer economy. Despite its prevalence, franchising is noticeably absent in the legal profession. This absence, however, may soon be a thing of the past. The recent wave of business structure liberalization in Australia and the UK is causing Ontario lawyers to discuss whether to permit alternative business structures

first shop opened in Little Rock, Arkansas in 1981. The great-tasting, low-fat frozen yogurt concept received an enthusiastic response from an increasingly health-conscious public. Its trendy new product propelled the company to the forefront of franchising, and was the ‘first in a long line of ground-breaking menu items that anticipated consumer preferences and continually refreshed the TCBY concept’ (Conlin 2001, p. 133). But TCBY products are just one of the reasons that thousands of operators have

marketing practices, that is tough competition or political and economical impediments that make the product offering harder and more costly (Advantages & disadvantages..., 2007, p. 1). Second alternative in order to reach new markets is franchising. Franchising is one of the most widespread forms of cooperation between companies all around the world. A franchisor is the founder of the whole system and represents a core for the whole network of franchisees. The parent company develops and manages

CHAPTER II REVIEW OF RELATED LITERATURE Franchising is defined as a business model wherein the owner of the business (franchisor) gives the independent operator (franchisee) the right to distribute his product, apply his business techniques and use his brand and/or trademark in the conduct of the business. With such a business model, the business owner can maximize their business’ profit potential in a shorter time compared to other more traditional business models. In franchise business, it is

requirements. It is fair to highlight that franchising is a popular and successful mode for foreign market entry, however there are a few potential drawbacks to this mode of entry. The drawbacks include: decreased brand quality due to not having full control over franchises, not maximising profit as franchisor only receives a royalty fee and not the full profit made, and the responsibility of supporting and training a future competitor. The franchising strategy is excellent for expansion. This

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

9 questions to ask before purchasing a franchise Franchising Articles Visit Website Send Email Close Nine questions you simply have to ask before you purchase a franchise; questions for the franchisor under scrutiny and questions to ask yourself and which demand an honest answer. Careful consideration of the issues to hand will set you in good stead whichever franchise you decide to buy. When an enthusiastic buyer signs' on the dotted line and looks forward to opening up his or her franchise

He has large amounts of capital, resources and experience. Through franchising the business will grow more quickly and Bagelz will become competitive in geographical areas it is not currently present. According to exhibit B, there is a lot of growing potential within the Food-service industry, and according to Exhibit

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

Conclusion Franchising as a method of globalization has lead Subway to seek heights in the international market. However, we conclude that, Subway gives a clear view of its success through various franchising strategies, other businesses can improve their models by changing their plans and organized structure like Subway. Considering Subway as a franchising concept, the advantages rank the disadvantages as more and more Subway restaurants have emerged. According to this, the biggest advantages might