Franchise Case Study

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Table Of Contents • Introduction • Background: Some Important Facts about Franchising • The Good News: Advantages of Owning a Franchise • The Bad News: Disadvantages of Owning a Franchise • Conclusion Around 45% of all retail sales in Canada are generated by franchised businesses (Canadian Franchise Association, 2014) McDonald 's® is an example of a franchising company. Franchises play a major role in their company Introduction Starting your own business can be an overwhelming experience, especially for those without a business background. Becoming a franchisee is often the first option that people consider when starting their first business. A franchisee operates a licensed business for a franchise company, such as McDonalds, while following …show more content…

For example, there are now more than 100 Keg franchise restaurants in Canada and the United States since opening in 1971. The Good News: Advantages of Owning a Franchise • Risk reduction with a proven concept • Improved operational processes • Marketing support by franchisor Being part of a franchise is like receiving a business starter kit with proof that it can work. A franchise allows a new establishment to sell winning brands. Franchises have all of their logistics and suppliers established which reduces costs and typical analysis. A franchise will receive the same media attention and marketing effects that the entire business is involved in. For the 12th consecutive year, The Keg has been ranked as one of Canada’s 50 best employers (Wilson, 2014). Franchising gives you the opportunity to become part of a legacy with the aid of those who have created it. 29% of the global workforce reported being self-employed in 2013, a positive sign of proactive entrepreneurial energy (Ryan,2014) The Bad News: Disadvantages of Owning a Franchise • High start-up costs • Control issues • Legal constraints and …show more content…

(2014). Interior Wealth: Franchising, the Bone & Biscuit Company. CBC News. Retrieved from http://www.cbc.ca/daybreaksouth/2014/04/14/interior-wealth-franchising-the-bone-biscuit-company/ Inma, C. (2005). Purposeful franchising: Re-thinking of the franchising rationale. Singapore Management Review, 27(1), 27-48. Retrieved from http://search.proquest.com/docview/226850145?accountid=39476 Pachner, J. (2011). The food court king. Canadian Business. Retrieved from http://www.canadianbusiness.com/business-strategy/the-food-court-king/ Pruett, M., & Winter, G. (2011). Why do entrepreneurs enter franchising and other share relationships?1. Journal of Small Business and Entrepreneurship, 24(4), 567-581,603-604. Retrieved from http://search.proquest.com/docview/923419785?accountid=39476 Ryan, B. (2014). Nearly Three in 10 Workers Worldwide Are Self-Employed; Self-employed report lower income, education, and life evaluation. Gallup Poll News Service. Retrieved from http://go.galegroup.com/ps/i.do?id=GALE%7CA379986802&v=2.1&u=ko_acd_nic&it=r&p=AONE&sw=w&asid=f60ff8a811989dd56fc83e8c687cb647 Wilson, J. (2014). The Keg founders built a legacy. Singapore Management Review, 27(1), 27-48. Retrieved from

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