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...
... middle of paper ...
...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.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Subway Report Executive Summary This report has examined the current franchising process in which Subway adhere to, while also indicating to subway that they could improve their franchising method by monitoring and controlling franchisees operations, while providing assistance and support throughout. Moreover, this report highlights the cultural challenges, such as; legal systems, laws and regulations, language barriers and the cultural differences with regard to Subways menu. Lastly, the recommended alternative approach Subway can use in conjunction with franchising, in order to gain a competitive advantage, is to export their products into supermarkets overseas.... [tags: Franchising, Business model, Marketing]
3072 words (8.8 pages)
- Given $500,000, I would choose to invest in a Subway franchise. Apart from being a personal fan of Subway, the franchise offers attractive benefits and support for franchisees, with surprisingly low startup costs for the largest restaurant chain in the world. Considering that Subway has been franchising since 1974, it naturally has a well-established system of support for franchisees. There are over 21,000 Subway franchisees already who took the leap and made an investment, because they realized the potential for growth.... [tags: Franchising, Franchise, Fast food, Business model]
1246 words (3.6 pages)
- Subway is a well known restaurant, you see them everywhere from strip malls, in some grocery stores and even on school campuses. Many people do not remember or known the amazing journey this restaurant has went on. Starting in 1965, When 17 year old Fred DeLuca and Dr. Peter Buck teamed up to open the first subway originally known as “Pete’s Super Submarines” in Bridgeport, Connecticut. At this time the average cost was 49-69 cents and on the first day the team sold 312 sandwiches. The two where known as the Dream Team, in 1966 they decided to open Doctor’s Association Inc.... [tags: Subway, Jared Fogle, Fast food, Menu]
937 words (2.7 pages)
- “Eat Fresh and $5 Foot long”. When anyone hears one of these they immediately think of Subway. Subway is a huge sub sandwich franchise that has been around for more than 45 years. It all started when the founder Fred DeLuca wanted to pay for college so he and his partner opened up a sub shop which turned out to one of the largest franchises in the world. They want to be the number one quick service restaurant franchise in the world. This has made Subway the most popular franchises and largest fast food chain in the world.... [tags: Advertising]
1131 words (3.2 pages)
- Exploration of Franchising Definition Franchising offers an excellent opportunity for you to be in business for yourself. When you hear the word " Franchise" you probably think of fast food restaurants such as Burger King, McDonald's or Subway. But the truth is Franchising is so much wider than that. In simplistic terms, franchising is where a successful business format is replicated. This will involve the setting down into an operations manual all the systems and procedures that the business owner has found gives them the best chance of success.... [tags: Papers]
1025 words (2.9 pages)
- Success Story: Subway Restaurants Subway Restaurants, the franchised based sandwich shops, has surpassed McDonald’s as the largest restaurant chain in the country. The “Healthy Choice” promoted chain surpassed the Big Mac of fast food by 148 locations. Subway opened 904 new locations last year, to McDonald’s 295 opened (www.Subway.com). The sandwich franchise began during the summer of 1965. Seventeen year old Fred DeLuca received a loan from a family friend for one thousand dollars, and opened the first Subway in Bridgeport, Connecticut.... [tags: Business Marketing Franchise]
769 words (2.2 pages)
- “Our aim is to provide a fun and safe environment where our customers can enjoy good food made with quality ingredients at affordable prices.” In McDonald’s corporations around the world, this is the mission statement. Keeping in mind ultimate goal to comprehend McDonald 's structure and society and why they keep on being the world 's biggest eatery network I constructed a SWOT diagram that permitted me to consider each measurement included in the business level and corporate level methods. My exploration showed more feasible qualities than shortcomings.... [tags: Hamburger, McDonald's, Franchising, Fast food]
722 words (2.1 pages)
- US 6412 Franchising and marketing management harpreet brar Student ID 15101 Task 1 Toyota is a big car company in world Toyota have a franchises all over the world normally Toyota is famous for good cars day by day this company going is growing and nowadays Toyota also start design electrical goods and other so ,any things .this company stablish in 1867 . and now this company is in all over the world and mostly Toyota have franchises in every country and individuals also have good experience with this company .... [tags: Marketing, Franchising, Franchise, Sales]
3847 words (11 pages)
- 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.... [tags: Business, Marketing, Management, Franchising]
753 words (2.2 pages)
- Benefits Of Franchising System In Turkey Franchising system has lots of adventages for economic growth of Turkey such as it creates job opportunity , competition improves the domestic campanies and global campanies brings many adventages. FRANCHISING IN TURKEY Franchising is one of the most important ways for global campanies and Turkey is seen as a profitablemarket for international franchisors.In Turkey , there are many franchisors in different sectors.Especially, Turkey's geographic position between Europe and Asia is a important adventage for foreign investors.Moreover , Turkey's population that has reached to 70 million people creates a vaste number of customer... [tags: Turkey Business Franchising]
1527 words (4.4 pages)