Essays on Franchisor

The franchise business model is based on a successful business model of another firm. The franchisor gets to avoid the liability of building other stores and further investment to continue the distribution of its goods and services to its consumers while the franchisee benefits from the success of the franchisor (Santa Clara University, 2016). The franchisee makes more profits than a direct employer because a franchisee has direct shares in the business venture. KFC is an example of a business that has adopted the franchising business model. The company which is global operates on both company-owned and franchises across ...

Business case scenario analysis

Abstract The successful enterprise Three Guys Garage is facing challenges for expansion, succession planning, and the use of innovation in their services. Growing the brand can result to the loss of operational and service quality control while not doing so will limit TGG’s sustainability in the future. Growing the brand also provides enormous opportunities for their apparent successors to gain experience in running a large enterprise. Franchising the TGG brand provides at least three advantages in the expansion and planning fronts: easy access to better managerial talents; easy access to expansion capital; and significantly minimized risk exposure. However, ...

Turkey is an exciting destination for multinational enterprises that seek to expand business to new a global marketplace. What make it more attractive are its economic and structural reforms initiated after it experienced financial meltdown in 2001 (Yaprak 29). Besides the country has a stable political environment, which creates robust traction for foreign direct investments particularly after it went through a hiatus for over 18years. Additionally, it has comparative advantages invigorated by its geographical location and its membership in the European Union. The custom union enables Turkey to allow globalized companies operating in it to circulate produced products within ...

1.0 INTRODUCTION According to Ekelund (2014, p. 76-77), the franchisor-franchisee relationship is far more complex than the traditional supplier-retailer relationship. First, the franchisor retains the ownership of the brand or the trademark, which the traditional supplier did not over its products. Second, the relationship is subject to conflicts, directly arising from the independent power of the franchisor and the franchisee as well as the interdependence of both. These factors create a flash point in the relationship, which if not effectively managed can destroy the relationship and economically impact on each other as a consequence of the relationship. In this ...

The article talks about how the new and upcoming entrepreneurs prefer franchising over starting their own ventures. This is because of the fact that franchised business has a better brand name and more chance of success over a new venture. The risk factor is greatly reduced by using the franchised brand name rather than starting a new venture. There are also certain problems for the franchisee. The main problem is the high franchise fee for a trusted brand name. It goes up to around $75000 and $100,000. There is also a need of contingency fund needs for inventory and till the time business ...

Introduction

For more than 50 years, Samsung has directed all its efforts towards making world a better place through varied businesses. The business activities of Samsung range from advanced technology, plant construction, petrochemicals, etc. Though the company expanded itself through various businesses but the flagship company i.e. Samsung Electronics dominate the global market in manufacturing of high-tech electronics and digital media. Numerous factors have added in making Samsung the market leader including continuous innovation in manufacturing, offering reliable products and services, capable human resource, making alliances with partners and by adopting responsible approach to business and keeping worldwide citizenship.

Globalization is ...

Indeed creditors of a corporate cannot claim the assets of a company’s shareholders should the company become insolvent. This is contrasted to the situation regarding a sole proprietorship in which the creditors are allowed by the law to put claim on the property of the sole proprietor in case the assets of the business are not sufficient to cater of all of the creditor’s claims. Indeed, it is fair for the shareholders of a company to have a limited liability and for the owner of a sole proprietorship to have an unlimited liability. A shareholder with unlimited liability is one whose personal property ...

Introduction

Sufficient amount of discussion and debate is found among the major difference between a franchisee or franchisor and the answers relating to both these aspects are still pending and need to be reviewed further . By definition, a franchisee is a party which comes under the ambit of a franchising agreement and has the right to use the trademark of a business. Apart from the trademarks, a franchisee could also use in the association of brands, proprietary knowledge merely in order to open a branch. A franchisee is liable to pay annual or upfront fees to the party who owns the franchise. The other party who engages ...

In the current context of globalization of many markets it is especially important to understand the importance of franchising in business development. Small business owners and companies are combined with large transnational corporations. In the face of strong competition in the market that gives a lot of advantages. The main feature that allowed the purchase of a franchise is to make your business known and recognized from the outset. Large retail chains and restaurant brands are already known to the general public. It often happens that a novice entrepreneur has accumulated a certain amount of money, enough to invest in starting their own ...

Success in anything is heavily dependent on the preparations that we put in. The decisions we make and the effort we provide for that particular venture together are the roads on which the project rolls towards success. Coming to the subject matter, Shania has made an important decision to invest and has the support of her husband. Therefore, it is important that the business decisions she makes at such a point in time be the best. The essence of the essay is to gain insight into the case of Shania and advice to her on the best course of action ...

Discussion Question 1

Selling through a store front or online presents several benefits and limitations. The advantage of selling online as compared to selling through a store front is that it is much cheaper because there is no need to pay rent and utility bills. The expenses related to online selling are web hosting, technical support with regards to web design and payment options. On the other hand, a retail store is a better distribution outlet for high-value products such as jewelry or designer clothes because the customer can better appreciate it. One other benefit of an online store is the extensive customer reach that it ...

Franchising refers to a situation under which a business relationship involves an individual or a company owning a system, a franchisor, granting a business license to an individual or a company mandated to operate a franchise system or store on a casual basis. This person or company granted the license is usually referred to as a franchisee to the granting company or an individual involved on the business relationship. This would involve authenticating the use of the franchisor’s trademarks, operating systems and brand at a previously agreed fee. This is normally done under a series of specified agreements and obligations between the two parties involved; the franchisor and the franchisee. ...

Executive summary

I chose to focus on functional strategy formulation and strategic choice in their application to real business world. This would aid me in understanding the topic in this “Strategic Management and Business Policy” textbook written by Thomas L. Wheelen and J. David Hunger. This report will be aimed at analyzing topic seven and eight, as they appear in the above class textbook. Chapter 7 and 8 concentrates on functional strategy formulation and strategic choice that concerns the full cycle of business life. This topic analyzes various strategies a business undertakes in the pursuit of growth and stability as well as ...

Introduction

Businesses are meant to earn economic profit and to expand comprehensively. It is more than important for a business to keep their expansionary level high and effective in order to become economically prosper and strategically active, as well. Businesses are of two different kinds, which are Small business and large businesses. Small businesses are those businesses which have certain recognition in a given city or area, while large businesses have extensive roots in different parts of the country. In the current economic situation and outlook, wherein every another person is cursing and accusing their job the mindset towards opening businesses ...

Introduction

Demand for Mexican food is probably the fastest growing in the restaurant industry in Canada. Steve Grill realized this and founded Quesada Burrito in Toronto in 2004. Although Burritos were doing well in United States and other parts in North America, none was in existence in Toronto by then. Despite having no experience in restaurant industry, Steve decided to take the risk of starting up a Burrito restaurant. His brother Greg, who was an information technology consultant joined the business later which was a major boost to the business. This led to expansion as the two opened up four other Quesada ...

Business Forms Worksheet

This is a form of business that is formed and managed by one person. The business entity is the easiest business to establish. The proprietor bears the sole responsibility of all activities and challenges that accrue to the business (Keenan & Riches, 2007).

Advantages

1. The owner enjoys all the profit that accumulates from the business activities 2. It is the easiest business entity to establish because it requires few legal documents to start a business. The business and the proprietor are one entity i.e. the owner is the sole decision-maker. 3. The proprietor enjoys maximum privacy and can manipulate the ...

CBC Video Case Studies #1 & #3

CBC CASE STUDY #1: Showdown on the Virtual Frontier (Cyber liability) - What was the legal issue respecting the toy sale web-site? The issue of cyber liability continues to puzzle many ecommerce entrepreneurs today. While ecommerce gives people the benefit to reach out to global audiences at the click of the mouse, little do they realize the complexities associated with online businesses today. In simple terms, cyber liability can be defined as the risk posed by people conducting business over the Internet, or over other networks. Many excited entrepreneurs start their business online, knowing little about the ...

A monopolistic market structure is one in which there are many sellers or sell similar products. These products are however not identical. Therefore in this market structure is an advanced level of differentiation of products from one firm to another. In this market, there are many firms which offer products to many buyers. Since the market is composed of many sellers, each of these firms is entitled to a certain percentage of the total market share. It has been noted that this market is composed of many sellers. What is makes the market structure different from the perfect competition market ...

Summary

Franchise is an authorization granted to an individual or group (the franchisee) that fundamentally grants him or her the right utilize the proprietor’s trademarks, knowledge and processes for the purpose of selling a product or offering service under the name of the franchisor (Alon, 2006).

Article summary: An Exploration of the Legal Meaning of Franchising

Considering that there is no definite definition or rather meaning attached to the word franchise, the article (Spencer, 2013) explores the statutory and the legal definitions related to the word franchising. This article essentially focuses on the many meanings attached to franchising within the jurisdictions of law and further interprets the meaning derived depending ...

Assignment

[subject or course title] [submitted to]

Part 1: Literature Review 3

Introduction 3

Franchise management strategies 4 Success factors 4 Importance of franchising 5 Main pillars of franchising success 6 Business model 6 Standardization of processes and operation 6 Potential expansion of business 6 Profile of the franchisee 7 Defining the role of the parties 7 Part 2: KMC franchise in UK 7 The selected company 7 Background of KMC 7 Success factors 8 Franchising In UK 8 A background on franchising 8 Growth and future of franchising ...

A Very Brief History of Franchising

Most of the historians consider that the concept of franchising started in the middle ages, at the time when the feudal aristocrats have started to sell the rights of collecting taxes and operating markets to others on their behalf. This is however representing franchising as a political activity instead of the business activity. Moreover, according to some historians the very first example of the franchising indicating a method of conducting business is traced back in the mid nineteenth century in Germany where the contact was made with the tavern/bar owners in order to sell beer entirely in taverns. But, in the ...

[Institution affiliated]

Introduction

A franchise is a go ahead or authorization that has been given to a group of people or an individual by a company or organization to sell the goods and services it has to offer in a particular way (Mendelsohn, 2004). Franchising is a very much well known business and commerce procedure that joins or rather brings together the brand name owners of a recognized commodity with another business, product, or service (Mendelsohn, 2004). The system of franchising is well and readily embraced by the small businesses and upcoming companies to have power and authentication to grow at a faster rate with the assistance ...

Individuals and businesses face hazards whenever they undertake certain actions. All actions have the possibility of either succeeding or failing. Different risks associated with each action have dissimilar probabilities of taking place (Rau, 2010). Businesses undertake measures to control the occurrence of a risk once its possibility has been noted. This is to avoid incurring high costs in case the risk occurs. The pizza business that Bob and Mary have bought faces the threat of fire and long haul. The businesspersons can avoid these risks once they identify the causes of these perils; for example, faulty electric wires, open gas ...

Pita Pit franchise case study

A number of advantages are incumbent upon the purchase of a franchise as opposed to starting one’s own business. It should be appreciated that franchises bring with them advantages present in already developed business which often lacks in the start-ups. In this vein one appreciates issues like product formula and manuals, brand image and developed markets and supplier base. In considering the advantage as to the product formula and business manuals, one takes into consideration that the products are no longer new in the market and enjoys the brand image enabled by the franchisor’s establishment. In the fact ...

Introduction

There are various methods through which an entrepreneur can use to get into a business venture. These methods include commencing a new business, purchasing an existing business operation, or through a franchise. Methods employed in getting into a venture vary from one individual to another. This is because different people have varying perceptions towards the pros and cons of the various methods. Further, different individuals have varying capital and entrepreneurial ability that are necessary for engaging into a business venture. Commencing a new business refers to the development of an original business idea. On the other hand, purchasing an existing business venture refers to the ...

Margaritaville

Margaritaville encompasses a business concept that creates not only fun but also excitement to customers. The founders of the business have invested in two main ventures i.e. in restaurant and the entertainment industry. They seek to provide exciting products and services to their clients. Its growth has been geared by the business’ philosophy-escape lifestyle which has led the public to recognize its restaurants as ‘Authentic American Tropical Escapism Restaurant’ (World Franchise Centre, 2012, p. 1). The franchise has been operational for the last two and half decades.

Since its launch 25 years ago, the franchise has developed several lifestyle consumer ...

Through franchising, a business can achieve several benefits such as the expansion of the business territory. As is the case with any modern business, franchising has its own advantages and disadvantages. Several companies enjoy huge profits through franchising their products worldwide. The first advantage of franchising your business abroad is that the business will spread to new markets. This is because new customers will have access to the company’s products. This is possible even if the franchisor lacks the funds to expand to the new markets. The franchisee meets this end of business by paying the fees and ...

CVP and break even analysis

Introduction

Entrepreneurs utilize cost volume profit analysis (CVP) to identify levels of business activities essential in limiting loses emanating from lack of adequate monitoring and evaluation of business performance. As such, CVP offers a viable option for use to give a reflection of the estimates amounting as variable costs. Also known as break even analysis, it specifically gives an overview of how profits fluctuate due to variation in sales price, fixed costs, variable costs and quantity off products or services.

Start-up costs $60, 000 to 184,000

Fixed operating expenses $4000 per month Lease equipment $2000 Break-even 300 members a) According to the Cost-volume-profit (CVP) analysis, ...

We are told that all the initial investment of between $60,000& $184,000 usually covers start up costs and other pre opening costs so such costs are sunk costs that will not affect our computation. We are supplied with the above information that is useful in this particular case. It includes:

Monthly charges (Selling price)$26 Fixed costs $6,000 (Made up of the monthly lease charges for the equipment,$2,000 and the rent $4,000)

We are also informed that a recent newspaper article that placed the breakeven level for this kind of business at about ...

Abstract

Franchising is gaining popularity as an important tool for international expansion. It benefits both the parties involved in franchising. The purpose of the paper is to highlight the importance of franchising and understand the factors that affect franchising decision of businesses. While a franchisor uses this tool as a method of distribution and international expansion, a franchisee uses it to reduce business risk. The factors affecting franchising decision differ for a franchisor and a franchisee. The franchisor looks at its decision of franchising with a more global angle through analysis of the global market and legal scenario, a franchisee has a local approach to make an investment ...

The current report is devoted to the franchising and financing options applicable to Bright Sparks Software limited. When conducting this research concepts related to franchising as an option to the company’s financing are made. The report also presents a critical assessment of finance options available to expand the business including benefits and limitations in the Bright Sparks Software limited business expansion. Several financing options to Bright Sparks Software are discussed as well as appropriate recommendations with regard to the business’ financial need.

Finance is the lifeblood of a successful entrepreneurial or start up business. Usually, access to funding determines whether ...

Franchising

Franchising involves the purchasing of rights to own and run a business designed by someone else (the franchisor) and using the successful business networks and models of the franchisor’s business usually in another geographical location. The person buying the business rights is hence called the franchisee. In this scheme, the individual owned businesses operate using the same name and are conventionally governed by rule and regulations that are similar to the ones for charge chains of businesses (Henkel & Brown, 2007). In its basic form, franchising permits the expansion of a business as well as the distribution of goods and ...

Introduction

In a franchise business, an individual gets into contact with a business owner with a trade mark or trade name. For franchises to succeed, there has to be a level of mutual trust between the franchisee and franchisor. The franchisee injects an entrepreneunal spirit into the business that enables it to be a success. A new person in business wishes to use the known trade identity of the franchisor to conduct his business. He wants to reap the advantages of selling a product with recognition and great customer goodwill in the market place. Through franchising, the franchisee seeks to reduce the investment risk by ...