Business 1
Dr. Frank Alderete
September 16, 2013
Report: Franchise What is a franchise? 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. Franchises are a great avenue to business ownership for those with the entrepreneurial spirit-and they're playing a definitive role in driving the economy upward. If you are thinking about buying into a franchise system, it is important that you understand exactly how franchising works, what fees are involved, and what is expected of you from the franchise company. I would like to franchise Pizza hut because their primary activity is the operation, and servicing of single-purpose Pizza Hut restaurants, which offer various combinations of family dine-in, carryout, and delivery services, primarily serving pizza, pasta, and other Italian-style food items. Pizza hut offers franchises to operate three types of Pizza Hut-branded units at specific locations. The Restaurants are Red-Roof restaurants: pizza and other products approved by pizza hut are sold for dine-in and carryout consumption, and may be delivered for off-premises consumption (a Red Roof restaurant that offers delivery is referred to as an RBD). The second is Delivery restaurants: Approved products are delivered for off-premises consumption. The third is Deliver/Carryout (“Delco” or "Delco-lite") restaurants: Approved Products are sold for carryout and are delivered, all for off-premises consumption. All employees of the Restaurants must complete Pizza Hut’s mandatory “Becoming a Customer Maniac” training. Employees must complete this training within 30 days after being hired or placed in the position. Pizza Hut offers training through a "blended approach", utilizing technology and paper-based training materials. The blended learning will follow a 4-step training model. Periodically, pizza hut’s training Department may also develop and present other programs or