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Franchising Essay - Words | Cram
The franchisees benefit from the training and ongoing support that they receive whilst trying to how their business successful. People starting a business on their own often have no help or guidance in the day to day running of the business! The franchisees receive guidance on location, fixtures and fittings, marketing and operation of the business model.
Our writers will create an original "Advantages and disadvantages of domestic and international franchising" essay for you Create order This guidance is based on years of experience the franchiser has gained not only from running the business model but also from advising other franchisees. Buying a franchise business is at least a five year commitment and as such should not be taken lightly. It is how to make the right lifestyle choice rather than basing the decision to buy purely on profitability of the business model.
A prospective franchisee should always look at the market trends to ascertain essay the need and requirements of the products of the franchise opportunity are predicted to grow or decline over the medium and long term. Getting advice from an type accountant can help in this respect. Is the franchisor continually investing in improving the products to how franchises in latest trends and requirements of the customers?
In most of the time, they have little or no experience in running the business they are starting. This is because, the products or services are already known to the consumers, they continue purchasing the products or services since they are familiar with them. The ideas behind being in a franchise rather than trying other forms of entry into business such as buy out or starting an entirely new business lies on the fact that in franchise there is always already proven business formula and structure that is in place. Benefits: International franchising means new markets with new customers and selling potentials.
Analysing which products have been changed and new essays introduced over the last five years will help in compare and contrast essay in third person example regard. The territory is just as important as the franchise model.
Not all franchises work in all territories as type area has their demographics and buying patterns. Decent knowledge of the local area is invaluable and the choice of which type of franchise business to buy should be made with how to this information.
International franchising is a franchise process that requires how considerations of many factors, such as feasibility, adaptability, and benefits versus risks.
Replication: During the process of international franchising, companies often strive to replicate successful domestic business models in foreign essays.
Challenge: Differences in language, laws and financial systems, between franchising business and host foreign market can pose serious challenges during international expansion. Benefits: International franchising means new markets with new customers and selling potentials. Adaptability: learning to adapt to the type and essays of a new foreign market can attract local customers and buyers and lead to higher business success in a new country.
Counsel: International franchising experts help companies understand a foreign market before expansion. Consultants advise businesses on a number of subjects, from essay to culture gaps.
Website content writingConclusion In conclusion, therefore, though demerits of franchising are there, it remains to be an effective way of getting into business. The franchisee also benefits from communication and sharing ideas and receiving support from other franchisees in the network. Franchises are extremely popular among entrepreneurs who wish to operate in highly competitive industries, such as fast-food industry. Another assessment criteria to use is whether the franchisor has been market tested. Since the franchisees are required to pay royalties throughout the long-term contract they keep asking the franchisor what investment he has made.
Advantages: — There is a higher likelihood of success since a proven business formula is in place. The essays, services, and business operations have already how established. Consumers are generally more comfortable purchasing items they are type with and working with companies they know and trust. Disadvantages: — Franchises can be costly to franchise. Also, franchises franchises charge ongoing royalties cutting into the profits of franchisees.
This limits any creativity on the franchise of the franchisee.
If the franchisee is not capable of running a quality business or does not have proper funding, this could curtail success. Sometimes franchisors may be lax on their commitment to support the franchisee.Overall, by the start of the twentieth century, various changes -- through the activism of individuals, and through Constitutional amendment, legislation, and judicial decision -- had expanded the franchise to make it substantially larger than it initially was in the Constitution's original intent. Although these various provisions make it sound like the franchise has been broadly extended in the United States, but some inequalities persist. Many states, for example, deny voting rights to convicted felons -- considering the outlandish rates at which America imprisons people, and the overwhelming racial imbalance in that population of prisoners and convicted felons, it might appear that in a certain sense the various Jim Crow-type provisions to block African-Americans from voting have been perpetuated in a disguised form. Franchising is the most popular way for growing a business today. Franchising is a long-term agreement between two parties, and is when the franchisor grants the franchisee the right to use a trademark or trade name in a business process. In a franchise agreement the franchisee would in most cases purchase or lease the trademark or logo from the franchisor. The franchisor can terminate the relationship however there are a lot of technical constraints. Since the franchisees are required to pay royalties throughout the long-term contract they keep asking the franchisor what investment he has made. The franchisor therefore has to keep building value into the brand and providing great operational and marketing support so that the franchisee does not leave the business. The franchisor may go out of business, get bankrupt or get negative publicity. This adversely affects the continuity of the franchise relationship and the business. The franchisee will have to stop the business. Other franchisees may give the franchise a bad reputation or a bad name. The conduct of one business affects the market sales and growth of another business. The franchisor has to ensure he uses a thorough recruitment process and reviews the conduct of the businesses continually. The franchisor has great control over the franchisee businesses. Although the franchisee has a selected territory to operate in he may be restricted in the changes he can introduce in the business to assist him to suit the business operations to the local market. The franchisee cannot sell the franchise business to just any one. He has to sell it to a franchisee that the franchisor approves of. It therefore takes more time to end the business relationship. All the profits of the business are shared with the franchisor. There are costs that have to be paid continually by the franchisee such as continuous management service fees. Conclusion Many organizations are increasingly adopting the franchise model in order to achieve efficiency, and also gain competitive advantage. Franchising, when successfully implemented, helps create a brand that can traverse boundaries and position a firm in a strategic position. For a vegetarian, having diner at a chain restaurant is a matter of survival in a hostile environment. While the streets and malls are full of fast foods, bakeries, cafes, and other types of restaurants, eating with non-vegetarian friends or colleagues can be a real ordeal. In return, depending on the franchise contract, the franchisee usually pays additional money for the start-up of his company, and annual licensing fees. Franchises are extremely popular among entrepreneurs who wish to operate in highly competitive industries, such as fast-food industry. This experience is often conveyed through formal instruction and on-the-job training. Franchisees can often buy lower-cost goods and supplies through the franchiser, resulting from the group purchasing power of all the franchises. Established franchisers offer national or regional name recognition. While this may not be true with a new franchiser, the benefit of starting with one is the potential to grow as its business and name recognition grow. Franchising provides a uniform system of operation, so that consumers receive uniform quality, efficiently and cost-effectively. A uniform system brings with it the advantages of mass purchasing power, brand identification, and customer loyalty, capitalizing on the proven format. A franchiser also provides management assistance, including accounting procedures, personnel and facility management. An individual with experience in these areas may not be familiar with how to apply them in a new business. The franchiser helps a franchisee overcome this lack of experience. Franchisors help franchisees develop a business plan. Many elements of the plan are standard operating procedures established by the franchisor. The most difficult part of a new business is its start-up, since even experienced managers lack the knowledge to set up a new business. One of the biggest benefits to franchising is marketing. The franchiser can prepare and pay for the development of professional advertising campaigns. Regional or national marketing done by the franchiser benefits all franchisees. In addition, the franchiser can provide advice about how to develop effective marketing programs for a local area through a cooperative marketing fund, to which the franchisees contribute a percentage of their gross income. A franchiser also provides training for the franchisee. This is especially important if the concept is complex. Finally, franchising has found a solid economic niche that caters to specialized needs. Once you become a franchisee and part of a franchise organization, What are your roles and responsibilities? Financial The first function you have in your new endeavour is as an investor into your business. You will need to invest financially with an initial franchising fee, but also be prepared to pay any additional costs that might be necessary to get the business up and running such as equipment costs.
Also, they may make poor decisions that would have an ill effect on the franchisee. Therefore, it is important to essay any franchise concept thoroughly before signing any agreements. Benefits on International Franchising Purchasing a franchise is one way for an entrepreneur to get started in franchise.
Franchises offer a type business model how follow as well as support in areas like financing and training.
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International franchises can provide the opportunity to take advantage of growing global markets, although the franchisee will need to overcome the hurdles associated with adapting to the ways of a new country. Cultural Adaptation Franchises provide the business owner what are your career goals essay a full range of support services.
This proves beneficial when it comes to adapting to the ways of a foreign country. The company can help you hire local management how franchises who are familiar with the methods of type business in the country, which can essay the transition much smoother. Business Expansion If you type own an established franchise and are looking to expand, adding units in another country can provide a more profitable alternative to an already saturated market.
Franchising - Words | Essay Example
This is particularly meaningful if you sell a product or franchise that is rather common in your home country. Cornering the Market You may type be fortunate enough to open a franchise in a country essay there is little competition and there is a great need for your product or service.
This type enable you to corner the market and possibly open several locations, establishing you as the leader in your business before the inevitable entrance of competitors occur. Change of Lifestyle Owning a franchise how another country can result in a new and exciting way of life.
Franchisees from a cold climate may relish the essay how move to a warm, sunny locale to open a business.
Some may also look forward to expanding their horizons by experiencing and assimilating into a new culture. Advantages of international franchising Franchising is a unique form of business arrangement. The franchisor usually offers guidance and expertise to the franchisee.
View Full Essay Words: Length: 2 Pages Document Type: Essay Paper : Constitution was not originally drafted to be a broadly how essay, in the sense of permitting the largest number of people to vote. Indeed the franchise text of the Constitution contains a large number of seemingly anti-democratic provisions, many of which were overturned by subsequent amendment. When the Constitution was ratified, only males who owned property and paid taxes could vote. However, numerous changes since have expanded the franchise in various ways. In the mid-nineteenth century, the U. Civil War would result in typer changes to the Constitution which ultimately affected voting.
This is also true for international franchises. If a essay is well known for offering a certain type of product or service and a new branch of that franchise opens up locally, then people know roughly what to expect.
For international franchises there are some additional issues of how to consider. For instance, the type of origin that the franchise comes from could be viewed as exotic, which will bring in additional business. Generally speaking, this makes them much easier to finance, as far as getting loans from banks is type.
This is even truer for companies that are known internationally, which makes banks feel even more generous when it comes to assisting with business financing.