Statement of purpose: The purpose of this report is to discuss the pros and cons of being a part of a franchise, or that of comparison of having sole ownership of an independent business.
Problem Statement:
The purpose of this report is to discuss the pros and cons of being a part of a franchise, or that of comparison of having sole ownership of an independent business. The reason for this research is to explain the different perks to consider, and pitfalls when deciding which one is more beneficial to meeting your current, and future goals, while being a part of a franchise; or an actual independent business ownership. Additionally, this research will analysis the many reasons why owning your own business can be costly, stressful, and
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However, on another note being a part of a franchise can also cause some of those ill feelings, like financial risks, hard-ship; and unexpected shortfalls that you will be responsible for. However, when you your own boss you have the power to make your voice heard, by simple expressing your thoughts and ideas as to what you want to provide your customers; compared to that of a partnership where your word doesn’t always mean a thing. Another thing to take to mind is you “as a business buyer, you need to evaluate each potential acquisition on its own merits” (Kroeker, 2013). This is why learning to identify the advantages, and disadvantages are a must before agreeing to anything you plan on being a part of; and owning ones business or being an independent franchise owner is no different. Those advantages and disadvantages are as follows: “you can make more money, put your own ideas into the practice; and control every aspect of the business” (Carter, 2014). Additionally, there is also a few disadvantages too, such as it being time consuming, causing you to take on additional assignments; and having a different perception of the whole picture. However, there are alternatives to overturning these setbacks to work in ones favor, by having patience, interest; and willingness to …show more content…
According to J. Mariah Brown/ Demand Media, (2015) Small businesses are the backbone of the United States; as of 2008, there were nearly 30 million small businesses in the country, according to the U.S. Small Business Administration (SBA)”. However, if you’re planning on starting up your own business, make sure you are quite aware of what you’re getting yourself into; especially we’re the advantages and disadvantages come into play. Remember, however, “variances in the success rates of franchises and independent small businesses are debatable, there is no conclusive evidence that either approach improves or reduces your likelihood of success” (Kroeker,
Moore, L 1997, The Flight to Franchising, US News & World Report. June 10, pp. 78-81.
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.
is extremely competitive, labor intense and risky. It is saturated with multiple different types of restaurants many competing in the exact segments. Companies operating in this type of environment seek differentiation strategies in order to set themselves apart from rivals, using various tactics such as pricing, food quality, menu theme, signature menu selections, dinning ambience and atmosphere, service, convenience, loyalty programs, specials, heart-healthy, and location (Thompson, Peteraf, Gamble & Strickland, 2014, p.C-138). Many restaurants can’t keep abreast and don’t survive, making them go out of
7-Eleven focuses on teamwork and encourages all franchisees to train every employee to be a leader instead of a follower. As an employee in 7-Eleven, I have been always told to dream as if one day I would be franchisee of a 7-Eleven store. One other thing the corporate tells the owners to look at is hire someone who would become a franchisee one day. Managers are expected to give out extrinsic rewards, and be a charismatic leader.
There are over 28 million small locally owned businesses in the United States and 70 % of these businesses are owned and operated by a single person. Owning a small business is not an easy task it takes hard work and dedication, Steve Jobs once said “you need a lot of passion for what you’re doing because it’s so hard”, people don’t realize
Although small businesses do not make a lot of major deals with large investors, most small businesses create profit revenue greater than large corporations. Small business creators are very brave considering only ten percent of small businesses survive. Unfortunately, some communities do not support local small businesses; they only support the large brand name and force small businesses to die out. Since small businesses will not have a name brand known around the world, many people from communities will not support them because they are not known on a national scale. “This, in turn will affect the local economy and drive capital out of their local economy. On average, for every one hundred dollars spent in an economy, if spent on a
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...
An evaluation of the restaurant’s strengths, weaknesses, opportunities and threats served as the foundation for this marketing plan. The plan focuses on the restaurants marketing strategy, suggesting ways in which it can build on new customer relationships, and development of new food products and targeted to specific customer groups.
Franchising today – It is the most popular way for the people to run business, there are 760,000 franchised businesses and 13 million jobs.
Small businesses have been considered the mainstay in countries around the world. In many European countries for example, the small business has been considered crucial to the success and flourishment of the country in general. Most individuals start upon a small business venture in the hopes of realizing ownership, independent profits and personal success. Small businesses can prove extremely successful when planned properly. Studies suggest that several small businesses, however, close or fail within the first few years of operation. This failure suggests that a majority of small business owners may not have as yet realized the crucial success factors necessary for successful implementation of a small business.
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...
3.Longevity: the sole proprietorship has a limited lifespan once the owner dies or moves on from the sole proprietorship will cease to exist