2. Option 1: Continue their current marketing efforts
Advantages:
* Will not
When you buy a franchise, you are buying an established concept that has been successful. Statistics show that franchisees stand a much better chance of success than people who start independent businesses; independent businesses stand a 70 to 80 percent chance of NOT surviving the first…
Opening a franchise company has its joys and perils. While the built-in brand recognition is a big plus for a start-up, that brand has not reached the level of some of the largest fast food chains. The franchise brand may not provide the level of support expected from a larger franchise chain. With that said, the combined management experience, and synergy between the goals of the franchisor and the company's goals will lead to the long-term success of our franchise.…
There are advantages and challenges to nearly every business type. The key is to understand what they are and the impact they will have on the business before becoming a business owner. “The challenges of owning a franchisee often have to do with unreasonable expectations - you're not your own boss, the brand is your boss. Richman,” (2008). Brand standards reach every part of the business, from uniforms and how they are worn to what types of coupons the business can and cannot use. Franchisee inconsistency defeats the purpose of a franchise, thus emphasizing the importance of following brand standards. Franchise agreements may dictate locations, vendors, and options of operation. Many franchisors expect their franchisees to buy supplies only from their approved list of vendors. This limits the flexibility of a business owner, especially when these suppliers’ costs are much higher, and it cuts into profits. Another thing to watch out for in a franchise system is requirement by franchisor for royalty payments and marketing fees that affect profit. Still another concern is relying too heavily on the parent company's services. You are one of many and the success or failure of your store is completely up to you. Know what services are guaranteed from the franchisor and be…
Advantages - a franchise provides a established product or service which may already enjoy widespread brand-name recognition. This gives the franchisee the benefits of a pre-sold customer base which would ordinarily takes years to establish.…
Franchisees also have less cost. Franchisees benefit from national and regional advertising put in place by the franchiser. They can also benefit by buying more than one franchisee and receiving discounts on fees.…
Financial strength of the company – able to grow without taking on too much debt…
Franchises have a business model created, and sometimes it is easier to open a business that it is already in the market. By learning how to open and run a franchise will teach me essential skills that will help to later create my own brand and my own franchise. I will choose to open a franchise related to the type of business that fills my interests. In some cases, franchises have a higher rate of success than start-up businesses and some of them cost less than startups. Franchises offer pre-opening support and ongoing support. I believe I will learn a lot about the businesses environment by doing a Capstone project in this…
Franchising is the practice of using another firm's successful business model. Franchise company offers similar products or services in many locations. The place of service has to bear the franchisor's signs, logos and trademark in a prominent place and the uniforms worn by the staff of the franchisee have to be of a particular design and color.…
Running a franchise allows me to operate a business with the template of the original business,…
The franchisee/ franchiser relationship has its benefits, but also one major downside which can cause conflicts and controversies. “At the heart of the franchise agreement is the desire by two parties to make money while avoiding risk” (Schlosser 94). In starting your own business, there is a huge financial risk. Even if you have an amazing idea it takes a lot of well managed money. Becoming a franchisee, though, while still costing a good amount of money, the risk is considerably smaller because the name, advertising and product is already out there. “One provides a brand name, a business plan, expertise, access to equipment and supplies. The other puts up the money and does the work” (Schlosser 94). Franchising makes it easier for companies to expand their market and profit from that. “The relationship has built-in tensions. The franchisor gives up some control while not wholly owning each operation; the franchisee sacrifices a great deal of independence by having to obey the companies rules” (Schlosser 94). When putting that amount of money and work…
Nowadays, running business is being more popular as people think that running business could earn more than worker. However, in this competitive society, set up a totally new business is not easy. Also, expanding an existing business is not easy too. Therefore, franchise is a new trend of running business.…
Franchisees can often buy lower-cost goods and supplies through the franchiser, resulting from the group purchasing power of all the franchises.…
She gets to choose the product and what she wants to sell and at what price. She can sell like sandwich with coffee and cake. But a franchise has its own product that she can’t change and choose the price of and its unique selling point.…
What are some of the advantages of operating a business as a franchise rather than just going into business on your own? Some advantages of operating a business as a franchise is that it's a great way to find talented people to work for you. People generally prefer to invest in running a business in return for profit. Therefore, you will get people that will work harder to build your business. Another advantage is easy expansion capital. This is good because you pay to buy outlets in your chain, you can grow the number of locations without needing to request financing from…
There are thousands of franchised businesses, covering nearly every conceivable industry, from well-known national brands to smaller, local opportunities. The challenge is to decide on one that both interests the investors and is a good investment. The term franchise basically illustrates the concept of buying an international company and using in a different country/state. In other words it means one is buying the right to use a specific trademark or business concept. The business run is essentially the same as all other business being run under the same name. In order to do this, it is require buying things like products, tools, advertising assistance, and training from the franchisor (the company that owns the rights to the business).…