Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Introduction of franchising
Introduction to franchising
Case study on franchising
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Introduction of franchising
As firms continue to expand their operations, they have often relied on franchising to create a more prominent presence nationwide. While franchising may seem to be a natural business practices, it is not without its share of benefits and hindrances. In the case of benefits, franchised firms have their brand’s pre-attached reputation which facilitates attracting customers as they already know the brand compared to an independent establishment. This assists in reducing advertising costs as they are spread nationwide and does not require introducing customers to the brand. Another benefit of franchising compared to independent businesses is that their startup costs are relatively lower as the franchisor is solely responsible for purchasing the …show more content…
One instance of this is that independent retailer provides the owner with greater empowerment and creative control over business operations compared to being confined to a franchisor’s requirements. This advantage is particularly beneficial for aspiring entrepreneurs who wish to gain a unique foothold within the market rather than conforming to run-of-the-mill options. On a similar note, independent businesses are able to have greater retain of their profits without having to pay royalties to the parent company, which provides owners with greater economic freedom to invest in new equipment/product offerings compared to having everything controlled by an overseeing organization. By allowing greater control over one’s profits, this allows the individual firm to have greater control over day-to-day operations and maintaining the business rather than waiting for assistance from corporate. Finally, if an independent business allows to expand its operations into multiple units, the firm is granted the ability to adapt their product offerings geared towards local tastes and lifestyles, rather than a uniform offering. This is particularly evident in the restaurant industry as independent firms are allowed greater freedom to rotate menu offerings based on regional demand compared to franchised restaurants which offer the same products
• The franchisees could leverage the ICEDELIGHTS brand, product, training capabilities, and real estate experience once ICEDELIGHTS could provide the support
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.
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.
Privatisation means transferring the control of an enterprise from the government sector to the private sector. Generally, but not always, this also means transferring ownership of the Public sector enterprise as well as control.
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...
This paper will provide an argument for diversification to be presented to board of directors for Starbucks. A strategy for diversification indicating the products and industries for diversification and how synergies may be gained will be provided. The identification and the discussion of the foreign market Starbucks should enter will be presented, along with the strategy it should use to enter the market. Challenges Starbucks may face in the foreign market will be discussed, as well how it might respond strategically to minimize the impact of these challenges.
Individuals and privately owned companies possess the majority of the means of manufacture. The resources used to produce goods and services are privately owned. The resources that are produced are also privately owned by the individual or company. In this type of system, workers have choice about what sorts of work they will do and the opportunity to change jobs. Individual initiative allows individuals have the liberty to start and operate their own businesses. In a free enterprise system, citizens control the production and distribution of goods and service. Citizens are also allowed to gain from their own investments or undertaking. Since individuals control the production of goods and services, multiple individuals and companies will offer the same goods and services. In order to receive more profit and to blow the competition out of the water, companies need to maintain higher quality at a lower price.
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
Five advantages for owning your own business are: 1) The owner receives all profits, meaning that all earnings go to the sole proprietor, or the owner, and isn’t shared with anyone else. The profit is not split among partners, or split among a corporation. So when you own your own business, you’re the first and only one that receives all earnings and profit. So if a person has a successful firm, he/she is the first to reap the success and rewards. 2) Another advantage of owning your own business is that you’re your own boss. You can set your own hours, decide what you want to do with the company, no manager to answer to. Basically, you’re in charge of everything. The owner solely makes all decisions. Or in other words, you’re running the show. 3) An additional advantage is that a sole proprietorship can be easily organized. It’s easy to start your own business. First of all, it costs very little money to start your own business. As a sole proprietor, you have minimal legal requirements. The owner doesn’t have to establish a separate legal entity. All that is needed is to register the company with the state and apply for an occupational license and any additional licenses required for the state. ...
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...
Economies of scale are the advantages that accrue as organizations become bigger and expand their activities. The firm that I chose is McDonalds. It is one of the world’s largest fast food restaurant chains. McDonald’s economies of scale allow for bulk purchase of products, faster growth, specialized management, and franchise support. Additionally, profits received and significant cost savings are a big part of McDonald 's economies of scale.
When entrepreneurs plan their business future they will consider how they can increase their business size or profit in a short period. Entrepreneurs may consider growing their business or company by using a merger or an acquisition. These methods can be a speed up tool and a short cut to enlarge their business. (Burns, 2011) Also they can reduce competition, make it easier for entrepreneurs to think about the market and product development and risk reduction. Furthermore, some lesser – known companies can improve their firm’s image and market power by using merger and acquisition with larger firms. However, there may be risks associated with merger and acquisition related to lack of finance and time. (Burns, 2011) This essay will discuss more deeply the advantages and disadvantages of using mergers and acquisitions, showing how it can affect firms and market with the case study.
By choosing to expand into markets later than other fast food restaurants Burger King hopes to avoid the problems of developing infrastructure and establishing a market base. For instance, by following McDonalds into Brazil, Burger King avoided the need to develop the infrastructure and mark...