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Benefits of becoming an entrepreneur essay
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Franchising Subway
Franchising has attracted some 34,000 people in the UK to invest in their future in self employment. Here are 15 reasons why franchises offer an attractive business opportunity.
1. Established brand value.
Prior to launching a franchise, the franchisor has developed and established attractive and meaningful branding for the operation, and as the network of franchisees expands the national recognition of this brand grows. When a franchisee enters into a mature franchisee network, they will benefit from the national name recognition the brand has built when it comes to their own marketing initiatives, while even new launch franchises have invested in professionally designed and intellectually protected branding to benefit its franchisees.
2. Accessing a proven system.
Most franchises are launched based on an initial head office or pilot operation that has been trading for at least one year. This is essential in enabling the franchisor to solve the teething problems any new business faces. The franchisee will benefit from lessons learned by the franchisor during this period through ongoing advice and support.
3. Offering a product or service in demand.
The pilot operation not only developed the operating systems and procedures of the business - importantly it also established a proven demand for the product or service.
4. A low risk route into self employment.
Franchising has traditionally a lower associated risk than starting up your own business independently. The proven nature of the business concept, combined with the training and support provided by the franchisor, lead to a lower level of failure. The 2007 NatWest/British Franchise Association UK Franchise Survey reveals that 93 per cent o...
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...an be attributed to its uncommon business model. Unlike most franchisers, the parent company does not operate any restaurants. Local franchisees operate the stores, and in most markets Subway enters into a contract with a franchisee to be its Development Agent for that market. The Development Agent is then responsible for developing new locations, evaluating stores on at least a monthly basis, and assisting franchisees with whatever needs they may have. Doctor's Associates, Inc. takes an 8% royalty on all gross sales from each store, while between 3 and 5.5% (depending on market) of gross sales go into a fund, the Subway Franchisee Advertising Fund Trust, also known as SFAFT which is operated by a board of directors voted on by Subway Franchisees. Contrary to other major franchisers, Subway's parent company does not make any contribution towards advertising the chain.
“Subway says boosting sales at existing restaurants is its biggest priority right now (Peterson, 2015).” From 2012 to 2014 Subway saw a decrease in sales and realized some of their competitors like Chipotle were making more money. How were they making more money? Well Chipotle starting advertising with antibiotic free meat. Just recently Subway decided to follow the trend and do the same, at the beginning of 2015 Subway started advertising antibiotic free meat. The restaurant has already seen a drastic increase in profit. Once Subway and Chipotle put these antibiotic free labels on their food they quickly received more interest in their restaurants. This leads to the fact that the American consumer is not very educated about not only where their food comes from, but also how it is processed. These restaurants should not be getting rewarded with an increase in profit for providing the consumer with false information; in order for this to stop people need to realize they are being taken advantage
The subway had to be built around most of these items to prevent interference. As a result of this, where the subway was subject to pass was dangerously close to the foundations of many buildings. To insure the safety of both the subway and the building many tests were taken. Furthermore, Parsons had to take into consideration that construction could not interfere with traffic. Another difficult task that had to be overcome were the electric railway tracks and horse car tracks that needed to be excavated. The solution to this was to dig near one side of the curb and once that was completed they move onto the other side. By working on one side at a time allowed them to support the underground pipes and the railway wood and steal beams safely.
• The franchisees could leverage the ICEDELIGHTS brand, product, training capabilities, and real estate experience once ICEDELIGHTS could provide the support
Subway, one of the present leaders in the fast food industry was set up in 1965 in Bridgeport, Connecticut by Fred DeLuca. A family friend of him suggested this idea to help him pay for his education to fulfill his dream of becoming a doctor. Dr. Peter Buck, one of Fred’s friends agreed to be his partner with a loan of $1,000. There was a huge growth in the business relationship that changed the landscape of the fast food industry.
Senior Management of PepsiCo is evaluating the potential acquisition of two companies – Carts of Colorado and California Pizza Kitchen – in order to expand the company’s restaurant business. If indeed PepsiCo decides to pursue the acquisition of one or both, they must decide how to align each of these business units in its historically decentralized management approach and how to forge relationships between the acquired business units and existing business units. In their evaluation, Senior Management is faced with the question of whether the necessary capital investment in order to purchase one or both of the businesses can be profitable for each of the acquired business units, but must also take into consideration that the additional business units will not hinder the profitability of the existing business units.
The purpose of the following paper is to be able to inform the reader(s) of the paper about the business goals of the ownership and operations of a Sports Bar Franchise. The topics of discussion will include the description of the goal of the business and subtopics of the types of goods and services that are provided by any Sports Bar Franchise, what types of customers will this business attract, and lastly, how and where the specified services are made available. The paper will also include dialogue about the strengths and weaknesses of an assorted of business organizations and which one would be most appropriate for the author’s business venture.
Demand for Panera franchising opportunities was very high, which allowed Panera to be picky about where and with whom they would do business. Panera determined where bakery-café locations could be. The franchisees bore the cost of opening new locations, and were required to obtain their ingredients from the home company. Expansion using the franchise model provided many upside benefits for Panera, while limiting the downside r...
Philip Lief Group and Lynie Arden. 220 Best Franchises to Buy: The Essential Sourcebook For Evaluating the Best Franchise Opportunities. New York, NY: Random House, 2000. Print.
...re they do it correctly, it was the artist’s negligence and a waste of a fresh sandwich. Subway seems to be doing a fantastic job managing, but there is always room for improvement. There should be no returns as this greatly hinders the total productivity. There are minor tweaks that the management can make, but subway seems to have it down to a science. What it comes down to is the philosophy of which techniques to follow to help build the business. Over the past five years, Subway has had a consistent growth of revenue of about 2.3% a year. With the increase of raw material prices, and petroleum prices, costs have risen about 5-20%. As times get difficult with consumers, subway decided to absorb much of the increase in costs, and pass minimal hikes to the customers. Although they may be increasing in revenue, their profits are leveled off due to higher costs.
Another strength is Burger King’s franchise development having 90% of its restaurants franchised. The franchise concept allowed the company to grow with minimal capital expenditure and receive royalties and fees. Burger King went above and beyond and created a new model of its restaurant to attract mo...
Not having to answer to a corporate boss is the dream of many and the flexibility that owning a business franchise creates provides this option. Success is not reached by simply creating a business, however. The level of success is measured by the size and efficiency of the business. Business growth is the driving force of the economy. The additional jobs and revenues created when a business expands allow the economy to grow at exponential rates. One of the fastest and most popular ways to increase the size of a business is to turn it into a franchise, which can then be purchased by individuals. Franchising provides opportunities that are beneficial to both the parent company and the purchaser. The company that owns the business can expand without having to pay such a large initial cost to open a new store since the franchise purchaser pays a cost to open the business. As well, the company can regulate many of the business activities so that there is a sense of consistency throughout all of the locations. The purchaser is allowed to use the trademarks and goods of the franchise which already have a large market presence. As well, they are provided with training and work standards by the company to help their business run smoothly (Kalnins & Lafontaine, 2004, p.761). Looking at the business model of the world’s largest food retailer, McDonald’s, provides great insight into franchising and business growth in general as well a better understanding of a global business that utilizes the franchising technique.
Manufacturing Franchise: These types of franchises provide an organization with the right to manufacture a product and sell it to the public, using the franchisor’s name and trademark. This type of franchise if found most often in the food and beverage industry. Most bottlers of soft drinks receive a franchise from a company and must use its ingredients to produce, bottle, and distribute the soft drinks.
Making the decision to open your own business is a major life event. Starting a new venture can be exciting as well as rewarding. The first step to becoming a business owner is choosing the type of business you would like to run. This business can be something that you have wanted to start up yourself or you can go with an established franchise. Are you willing to share the profits in exchange for the relative safety of a franchise or would you prefer the risk and rewards of pursuing your own vision? Franchising is a continuing relationship wherein a franchisor provides a licensed privilege to the franchisee to do business and offer assistance in organizing, training, merchandising, marketing and managing in return for a monetary consideration
The first step in any business is to think of or create a business idea. Without an idea, one cannot launch their business off the ground. A right direction is needed to create a business with a unique idea. However, other options include franchising or buying an existing business (1). Franchising allows an individual to run stores such as Burger King or McDonalds under the corporate name. It involves taking training classes and a heap of money in order to start a franchise. A Franchisee will have to buy products and services from the corporate entity they are franchising from, which is often required. Buying a franchise is like taking a piece of the pie from the company that is franchising and sharing that pie with everybody else. In addition having a franchise allows one to communicate and in essence become a big part of an added business opportunity (4). Franchising is far from easy to start and maintain for that matter. Starting a franchise involves a l...
A franchise is simply investing money in a location or store, and then having the store become your own business after learning how to manage the entire business. You earn the majority of the profits, and you also don't have to worry about operations. You'll be taught by the company on how it run the entire business, and this is the reason why this is a huge and very easy way to become rich. Franchises require quite a hefty investment depending on the business you plan to buy. However, if the business is in high demand, there is profits to be made. Take for exMple the Cold Stone Creamery business. Countless people purchase one of their many franchises. The money is very good, the opportunities are endless, and the fact that there is no more need for advertising is what makes this more worth the investment in the long