Introduction to Business
Assignment #01: On Chapter #3 & #4
Chapter #3: Entrepreneurship, Franchising and Small Business.
09. Why would a person want to own a franchise of a major well-known franchisor?
10. What is an intrapreneur? Why do some firms encourage intrapreneurship?
Chapter #4: Social Responsibility and Business Ethics.
09. Why is insider trading illegal?
Chapter#3: Entrepreneurship, Franchising and Small Business
Question #09: Why would a person want to own a franchise of a major well-known franchisor?
While many people desire to open and operate their own independent business, there are quite a few obstacles that most face. Starting a business from scratch can be very intimidating and most people don't even know where to begin. For many, purchasing and running a franchise business may be the way to go. Purchasing one of these outfits offers that the privilege to promote an already successful recognized product or service, along with many other benefits. If we are looking to open and run our own operation, franchising may very well be the best option for us and should at the very least be seriously considered. Generally safer than starting a business from scratch, franchising is a proven business format that helps firms to grow quickly and efficiently. In other words, purchasing a well-known franchise is a great way to go into business for us. Think of it as "entrepreneurial coloring inside the lines." In general terms, a franchise is a license to use the name, trademarks, and products or service offered by an already existing company (e. g. KFC, Pizza Hut). Franchising opportunities allow us to distribute products or offer the services of an established business. Top reasons of purchasing a franchise of a major well-known franchisor- Corporate Image and Brand Name Awareness
If we buy into a franchise system that is already established the corporate image and brand awareness is already recognized. Customers are usually more comfortable purchasing items they are familiar with and working with companies they already know and trust. Proven System in Place
When we buy a franchise we buy a system. All franchises have an already-established system in place that you must follow. These systems are designed to improve the overall productivity and increase sales of each franchise. Having a proven system already in place eliminates the guesswork and errors a common business owner would normally face. Higher Likelihood of Success
Buying a franchise is very different from starting a mom-and-pop business. Since there is an already established system in place, there is a higher likelihood of success. If we follow the system the franchisor has put in place, we should be on our way to running a very successful business. Easier to Obtain Financing
Lenders are usually very comfortable financing the purchase of a franchise because they already have a proven track record. Bankers usually look at successful franchise chains as having a lower risk of repayment default and are more likely to loan money based on that premise. In addition, some franchise systems even provide in-house financing or leasing options. Ongoing Support
When we buy a franchise we are never alone. We will always have the support of the franchisor and the support of knowing we are part of a growing family. We will always be able to pick up the phone and ask questions to the franchisor or even to other franchisees. Training
Most of franchisors offer a 1-4 week training program that is usually held at their corporate offices or at an actual franchise location. This is what makes franchises stand out from every other business or business opportunity. The franchisor will train a person to run his/her franchise exactly the same way their other franchise locations are run.
When one buys a franchise, he is buying an established concept that has a good record of accomplishment. The franchisee is allowed the use...
Please join StudyMode to read the full document