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The concept of franchising
The concept of franchising
The concept of franchising
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A new business venture you would like to start. Entrepreneurship is more than the formation of a business and the riches connected with it. It is centered on the formation of another venture that serves society and rolls out a positive improvement. Business people can make incredible firms that show execution, authority, notoriety, and life span. Illustrations of new undertakings that have made a noteworthy commitment to life in our day are given Franchising has developed throughout the years as a prevalent type of dispatching into an entrepreneurial endeavor
. An establishment is an arrangement of dispersion that empowers a supplier (the franchisor) to orchestrate a merchant (the franchisee) to handle a particular item or administration
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Franchising is a business model in which the primary purpose is risk minimization. In essence, the two types of franchising arrangements are the franchising of a product or service and the franchising of an entire business enterprise. (Hornsby 51)
One of franchise I was looking into open were coffee shop and entertain center great food and A Rockin ' Franchise Opportunity Classic Rock Coffee is known as the perfect blend of caffeine, classic rock music and cool. It provides its own customized brands of coffee, such as Atomic Punk Espresso, Back in Black Bold, After Midnight and Breakfast in America Morning Brew. It makes high end protein shakes that are supplied from Shake this, a sister company that shares the same owner.
The concept is truly innovative and fun. Not only do customers drive across town to visit Class Rock Coffee shops, but potential employees seek employment here, as they recognize the methods, standards and procedures are top in the industry (Gavin, D.
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At the same time, though, you have to be aware of the risks you face before you can begin analyzing them and deciding what to do about them
By providing specific examples from your research, explain the specific actions required of a new business owner when starting a new business
The Franchise Rule gives prospective purchasers of franchises the material information they need in order to weigh the risks and benefits of such an investment. The Rule requires franchisors to provide all potential franchisees with a disclosure document containing 23 specific items of information about the offered franchise, its officers, and other franchisees. The amended Rule covers the offer and sale of franchises. As under the original Rule, a commercial business arrangement is a “franchise” if it satisfies three definitional elements. Specifically, the franchisor must: (1) promise to provide a trademark or other commercial symbol; (2) promise to exercise significant control or provide significant assistance in the operation of the business; and (3) require a minimum payment of at least $500 during the first six months of operations (Wells, G. C., & Wieczorek, D. E.
According to Chick-Fil-A’s website the process to own a franchise is lengthy and rigorous. Chick-fil-A: Franchise Application Information. (n.d.) “At Chick-fil-A, we believe that our success in a community is tied directly to the caliber of the individual fra...
Richard believes that his vision for the company, a two-tiered concept with a top microbrewery producing fresh, quality beer and a chain of brewpubs, has potential. However, due to the more complex nature of running a restaurant, he believes that the company has yet to figure out how to run its restaurant business profitably.
• ICEDELIGHTS would then allow the franchisees to use their brand name and product, would train the franchisees and one manager per store, and would provide support for finding locations and construction of the stores.
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.
As my wife and I were pondering about how to meet our financial goals, we started thinking about which businesses we would love to be a part of and Chick-fil-a stood out way above any other. So I told my wife that I would look into Chick-fil-a’s franchise opportunity and I went to the website and learned some more about the company and saw that it would be a great company to be a part of. Especially after finding out the cost to startup. We don 't believe a person should go into great amount of debt to start a business. After letting my wife know what I found, we decided to start the application process online.
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...
Business growth general is assumed to be good; bigger is assumed to be better (Hess, 2011), but if the proper planning is not in place it can lead to a business failure. Beginning a business based on something she loved, and needed in her life Susan Feller made the brave decision to build a successful business by baking and selling gluten-free cakes and desserts. After her retirement she focused on her dream and solving her own issue, finding food safe and healthy to eat for those, like herself, with Celiac disease and gluten allergies, but they also had to be delicious. Feller had some tough decisions to make as a small business owner, would she be able to keep up with the demand, how can she grow her business and what if she decided she had had enough and wanted to close the business? These are all decisions any business owner have to face at one point or another.
For one of my selections for buying stock, I invested into Starbucks, this company has attracted me with their wonders of different coffees, and I knew many others were interested in the very popular coffee company. Starbucks all started 1971 in Seattle Washington. With three men which were Jerry Baldwin, Zev Siegel and Gordon Bowker each of them put in one thousand three hundred and fifty dollars along with a barrowed five thousand from the bank to start up there small coffee shop in pick place market, witch is located in down town Seattle. The name for this company was inspired from the character Starbuck from Moby Dick; this character was a coffee lover. There close friend designed there well known logo. These men never thought of this small company to get large they just thought of it as a small coffee shop. Out of all three men Siegel was the only one that work at it full time. The men depened on a man named Alfred Peet for there coffee beans but soon then started there own blends of coffee beans. With in a year opening the first store they were able to open a second store. When the 1980’s rolled around, it was a thriving company, in the Seattle area. However, the co-founders began to have other interests and were involved in other careers simultaneously. Despite that, the company was about to undergo a major turning point. A man by the name of Howard Schultz started to pursue an interest in the company. He noticed that the coffee shop had a wonderful environment. He started asking a questions and becoming more and more interested by every moment. He loved how the founders had so much knowledge on the coffee and each blend. In 1982, Schultz became director of retail operation. This was just the start to a new phase with the company.
In “ The Starbucks Experience” author discusses essential business strategies that allowed Starbucks from its establishment in Seattle in 1971 as a single-location coffee shop to go worldwide. Nowadays, Starbucks has more than 11,500 non-franchised locations worldwide with annual sales more than $600 million and has been recognized as one of the best Fortune 500 companies to work for. The Starbucks former CEO and the current chairman, Howard Schultz, implemented the five core Starbucks principles for turning “ordinary into extraordinary”. By following these principles, Starbucks became extremely successful and since 1992 the Starbucks stock has grown a staggering 5,000 percent. The author discusses the five core principles that lead to Starbucks’ success such as: make it your own, everything matters, surprise and delight,
Ehmke, C., Fulton, J., & Lusk, J. (2005). Marketing's 4 P's: First Steps fo rNew Entrepreneurs. Retrieved from Purdue Extension : https://www.extension.purdue.edu/ec/ec-730
Koehn, N.F., Besharov, M.A., & Miller, K. (2008). Starbucks Coffee Company in the 21st Century. [Case study]. Boston, MA: Harvard Business School Publishing.
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.
Corporate Entrepreneurship can be seen as the process whereby an individual or a group creates a new venture within an existing organization, revitalizes and renews an organization ,or innovates. Zahra’s(1986) definition of corporate entrepreneurship suggests a formal or informal activity aimed at creating new businesses in established firms through product and process innovations and market developments,whereas sathe(1985) defines corporate entrepreneurship as a process of organizational renewal. Corporate Entrepreneurship has emerged as a much needed ingredient contributing towards the growth of any organization under a changing business environment.
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...