An overview of the concepts and benefits of franchising.
Written in 2002; 2,276 words; 5 sources; MLA; $ 70.95
Paper Summary:
This paper examines how franchising is an excellent business concept, which promises successful business expansion for the franchiser and a good opportunity for the franchisee to enter a profitable business venture. It looks at how the most admirable aspect of franchising is the mutually beneficial nature of the arrangement, as the franchiser promotes his business without incurring additional capital investment, while the franchisee has the opportunity of utilizing the brand image and business reputation of the franchiser as a launch pad for successful business. It discusses the beneficial aspects, as well as the inherent disadvantages, in that a negligent attitude in designing business concept or selecting and training franchisees may engender the loss of mutual trust and backfire.
Outline
Introduction
Franchising
The Need for Franchising
Advantages of Franchising
Disadvantages of Franchising
Benefits for the Franchisee
Financial Benefits
Becoming a Franchiser
Legal Aspects of Franchising
Conclusion
From the Paper:
"Over the period of years firms have continuously tried to expand their business without incurring a big risk on their part. Franchising has evolved as a good and natural business arrangement, which enables the rapid expansion of business without the need for any additional investment, and with the minimum of risks. In other words franchising allowed businesses the freedom to grow at the cost of the franchisee. Each franchised store is opened at the cost of the franchisee and the franchiser does not have to shell out any capital investment for establishing the network. Unlike the starting of a new branch which involves huge capital investment and managerial overhead establishing a franchise provides an excellent alternative wherein the franchisee takes care of the local operations under the franchiser's framework."
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