To What Extent is Owning a Franchise a Good Business Decision?

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Why start a half owned business when you can have it all for you self and make the most out of it? A franchise is a business which uses the original company’s name to sell goods and services in a certain area. In other words franchising is creating an alliance between groups of people who have a specific goal of dominating the market and having more customers than their opponents. The original company is called a franchiser, and the person who opens a franchise is a franchisee. Even though the franchisee has to pay for the business name, they are still provided with standards, quality, access to tools and materials, and advertising. Other than that the costumers will be familiar with the name of the company from the moment it starts operating. To a large extent owning a franchise is a good business because it has a successful track record, provides owner support, yet it limits owner’s flexibility. Franchises are very successful these days because they have a proven track record. According to document E “The rate for franchise owners are higher than independent business. Nine out of ten reported profit in 2002.” This shows that franchises are making more money in comparison with self-owned companies and that is one of the reasons why there are so many franchises. Also in the same document the author claims that “Approximately one out of every 12 U.S. retail business establishment is a franchise owned business.” This is an example of the popularity of franchises amongst businessmen. It points out that every day there are more people starting a franchise and making profit, which encourages others to start a franchise. Franchises are a good investment in which there is more money and it has more fame and reputation in th... ... middle of paper ... ...se who are starting a new business and have no experience of what so ever on how to operate an enterprise. These types of businesses help those people to understand how to start their business and what to do when they face a problem in their company. Franchises are a very good business that are popular amongst people and make a lot of profit, also support their franchisees, sometimes it does affect the people who are in the business negatively but it is for their own good. This highlights the fact that even though a franchise is a half owned business in which the franchisees have to share their profit with the parent company, it actually is a lot cheaper than a self-owned company. Franchises are businesses in which there is a lot of profit and people are succeeding every day. Works Cited http://www.areyoureadytofranchise.com/?gclid=CKu0xeLLg74CFYxufgodCokA1w

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