Case Study : Integrated Business Operations

While doing some research I found that a franchise agreement is a binding legal contract that is signed between a franchisor and franchisee. A franchisor is the company owning the rights to grant franchises to franchisees, while a franchisee is a person or entity who is given the right to conduct business by a franchisor or licensor. The most important definition however is that of a franchise which is an authorization granted by the government or company to an individual or group allowing them to carry out certain commercial activities.

Advertising money is spent more efficiently (the franchiser teams up with local franchisees to advertise only in the local area).

As I frequent the restaurant I have seen first-hand that the management would need an over haul if franchises were ever to be a possibility. Managers at different locations do things differently. An example is the way their subs are made. At one location, onions and tomatoes are put on the Italian sub at another location, these items are not a usual topping, so you must ask for them. There are some difference that would need to more uniform. I understand franchises have their own personal touches to products however the product should have more universal likeness as it is the same

The first choice of business is the franchise. In a franchise, legal binding agreement is entered into between two firms, the franchisor (the product or service owner) and the franchisee (the firm to market the product or service in a particular location). The franchisee pays a certain sum of money for the right to market this product” (Rubin, 1978, p.224). The franchising is more prevalent in the restaurant industry (Hoffman & Preble, 2003). The two distinct features of this business type include; first, in order to notable service components should

1. Franchisees gain numerous advantage when they purchase a franchise. First, while a franchisee may be opening a new store, it is part of an already established business and system. This means a franchisee has access to turnkey operations, allowing an increased speed to establishing and growing the business. Franchisees also get support for management and training activities, as well as financial assistance. Going hand in hand with this, a franchise already has an established brand name, quality of goods and service which have been standardized across the franchisor’s larger company, and national advertising programs from franchisors. Franchises also have large-volume, centralized buying power. A franchise has proven products, and

It has its advantages and disadvantages to franchise the business. It is a careful decision to make for anyone to invest a lot of money into a franchise and everyone should be comparing pros and cons.

Franchising is a business model that allows companies to rapidly expand their market share. According to Franchise.com (2015), there are three types of franchises: distributorships, trademark licensing, and business format franchises. When two organizations enter into a distributorship, the originating company provides the rights another company to sell their products. An example of a distributorship is when an auto manufacturing company grants rights to a dealership to sell their vehicles (Franchise.com, 2015). Trademark licensing is when one company allows another company to use their trademark (Franchise.com, 2015). The business format franchise authorizes franchisees to sell the parent company’s products and/or services as well as utilize their business model. This type of franchising is the most common and is the type needed to obtain to open a new Cold Stone Creamery.

Franchising is simply a method for expanding a business and distributing goods and distributing goods and services through a licensing relationship. In franchising, franchisors not only specify the products and services that will be offered by the franchisees, but also provide them with an operating system, brand and support. (Franchise.org, 2016)

A franchise is a legal agreement between franchisers and franchisees that consents use of the franchise’s trademark and trade name or marketing plan

Franchises are across the world these days’ place like McDonalds,7eleven and Burger king have been around for a while and will continue until the day the world dies. A franchise is a business relationship in which a franchisor grants a license to another business a franchisee. To become a Franchise is not an overnight task. Capital needs to be raised to purchase the franchise most franchises can be up to one million dollars or more. After raising capital, a franchise can be purchased, but there are rules and regulations that must be followed. Franchisees have duties and responsibilities they have to account for. Then the franchise agreement that needs to be followed to the letter.

Not having to answer to a corporate boss is the dream of many and the flexibility that owning a business franchise creates provides this option. Success is not reached by simply creating a business, however. The level of success is measured by the size and efficiency of the business. Business growth is the driving force of the economy. The additional jobs and revenues created when a business expands allow the economy to grow at exponential rates. One of the fastest and most popular ways to increase the size of a business is to turn it into a franchise, which can then be purchased by individuals. Franchising provides opportunities that are beneficial to both the parent company and the purchaser. The company that owns the business can expand

Manufacturing and retail -In this sort of franchise the franchisee will generally occupy retail premises and sell products or services. The business depends totally on the location of the premises, with sales coming from walk-in consumers. In this situation, the franchisee will sell a product or service to end users. Operate from locations with high traffic like shopping malls. Depend on walk-in customers for sales.

Advantages & Disadvantages of Franchising Franchising is ‘a continuing relationship in which the franchisor (the owner of a company) provides a licensed privilege to the franchisee (the buyer) to do business and offers assistance in organising, training, merchandising, marketing, and managing in return for a consideration. It is a form of business by which the franchisor of a product, service, or method obtains distribution through affiliated dealers (franchisees).’ (http://www.business.gov) A franchise is essentially a replica of an existing business. When you purchase a franchise, you buy the rights to use the parent company's name and to sell its product or service in exchange for an up-front franchise fee and ongoing royalties, which

Franchising is normally used by companies that are providing services. It’s easier to begin franchising than settings up separate traders/stores, after companies begin to franchise it becomes easier to build a bigger customer base. Although, Franchising does not come at a cheap price, The franchisee has to pay a large amount of initial fees and commissions to the franchise.

According to International Franchise Association (IFA), ‘‘a franchise is the agreement between two legally independent parties which give a person or group of people (franchisee) the right to market a product or service using trademark of another business (franchisor)’’ (IFA, 2015).