Thirty years ago franchising was a revolutionary new technology - a new and better way - a new and better way to retail goods, food products and services to the consumers. The essay about franchising operating cycle is also referred to as the cash-conversion cycle, which is the length of time that a company takes to convert its inventory purchase to sales revenue. In many cases franchisees are given exclusive access to a particular geographical area. Question 1 answers : The advantages of franchising from the franchisees point of view are myriad, most important among them are: First, the franchisee can benefit from the widely recognised by the style of branding name of the franchisers around everywhere. The bigger and famous the brands name the larger the amount to be paid. Franchising is a form of business in which the owner, or franchiser, gives license to distribute products, services or methods of business to affiliated dealers, franchisees.
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The IFA University has numerous programs that you can use to help you succeed not only in franchising, but also business management. Second, all the goodwill accumulated by the franchisee in the local market will be transferred to the franchisor once the franchise contract expires or terminates. Wendys began franchising back in 1972. The second reason I chose Wendys is because I am most familiar with. Scrolling down you can search franchise opportunities by industry, learn about franchising, read blogs about franchising, and find out information about franchising for veterans. There is a big number of franchise operators who work from 60 to 80 hours per week and are unable to even get the minimum wage. National essay about franchising reputation The presence of any one of these franchises may bring out the best of the country and also improve the high status of the host country. I chose this franchise for several reasons. Wendys currently has 6,600 franchised units and another 1,400 company owned units. For setting a new business it is very important to start with a well known name. Discuss about the operation of it and how this property helps to improve the economic of your area. Franchising, not all business ideas have to be original and instead you can use existing ideas to start a business. From the drop down menu you can select start a search.
This is due to the fact that if quality management is not handled properly with an oderly manner, there could be a very bad image upon the companies which in the end would be blamed on the operational units. A company with an extremely short operating cycle requires less cash, and so can still grow while selling at relatively small margins. I chose to use Wendys Old Fashioned Hamburgers for this part of the assignment. Your initial investment with the company is between 250,000 to 600,000. Thus, several management decisions (or negotiated issues with business partners) can impact the operating cycle of a business. This would be very good because all the other host countries which would see the difference, would definitely follow up with their own franchises Question 2 conclusion : Given all the information, a owning and running. The credit policy and related payment terms, since looser credit equates to a longer interval before customers pay, which extends the operating cycle.
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Technology transfer Franchises will bring in the best technology and all the kinds of methods that would be new to the host country. Communication to and from the various operational units of the business is key because they all work together to help generate a profit for the company. Operations employees dont usually come in direct contact with customers and end users, though they are responsible for helping to ensure that customers ultimately receive the product or service that the company promises. Source of tax revenue Profits of franchises will be subject to local taxes in most cases, which will provide a valuable source of revenue for the domestic government. The government relations tab has information about franchising congress, franchising votes, and information about franchising economics. Second, franchisee can have a lot of access to the main big kinds of business management skills which are rarely easy to get a grip. There is usually as written operations procedure manual distributed among all the employees to clear out all the confusions.
These companies are not stopping to essay about franchising open their franchisors around the world because these franchisee knows very well that the market globally demands the franchisors to be around. The event tab is also where you can get information about upcoming webinars, franchise development, and even leadership seminars. If a company is a reseller, then the operating cycle does not include any time for production it is simply the date from the initial cash outlay to the date of cash receipt from the customer. This in turn, increases the possibility of success of the business. Franchisees also not only purchase the logo when the license is handed over but they also buy the rights of that company this means the franchisor sets up the details on how the company is run. The next block over you can find events sponsored by the International. It was founded in Dublin, Ohio. What is more, the franchise is required to sustain the business of the franchise and to follow the quality standards.
This is a small price to pay if it can help your business venture be successful. This may not always be the case and it is often found that in the long run running an original business gives higher returns. Third, the franchisee does not have much freedom in his business. Especially if the franchise is opened in a country overseas. Combined strength- When buying a franchise an agreement is conclude between two parties. All of the operational units in the business will have to keep an eye on the quality management. Statement of originality, we, the undersigned, declare that this coursework is our own original work. A franchisee is always populated in every part of the world as they are very well known for what so ever they do as in catering or multi level marketing and.
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The first section of the website is where you start your search for the perfect franchise opportunity. The startup cost of a new Wendys unit costs 250,00. Employees take care of all of the background activities that keep a company running efficiently behind the scenes. Product Design 7, service design 9, capacity management. Question 2 introduction : In this modern era of globalization, a companys operations segment is the unit that manages and supports the company.
This is what all franchisors strive for however, doing this would take a significant amount of time. This allows you to essay about franchising search the database from hundreds of different opportunities. Management is responsible most of everything. Qualified writers in the subject of commerce are ready and waiting to help you with your studies. Do Not Waste, your Time, hIRE writer, only.90 / page. These can only tell one thing is that franchisors are upcoming throughout the entire world and it will not stop blooming due to the fact of its importance around as all the researches shows. The prerequisite to compensate the franchisee payment and it expenditure to the franchisor can be too large a sum (in some cases). The last two tabs on the IFA website offer information on professional development, including information on scholarships and grants, as well as international franchising information.
The franchisor will also lose hands-on involvement with the essay about franchising individual operations and the franchisor will also be limited by contract to the actual changes which can and may incur in the franchise units operation structure. . Even though the franchisee may be better able to handle and organise the business but because they are tied to the brand theyre representing therefore makes business operations difficult. This means that you will have to purchase the material before you use. We will write a custom essay sample on, franchising or any similar topic specifically for you. The management would handle the production duties and make various and different strategic plans for the company to follow. Improving the balance of payments Inward investment will usually help a countrys balance of payments situation. On the other hand (Kevin. The next two tabs on the website are not as useful as the first, but they still have some great information. Franchising is a style of business which has a lot of different but same branches throughout the world.The franchisee usually pays a one-time franchise fee plus a percentage of sales revenue as royalty, and in turn gains instant name and recognition. The second part of this assignment asks for me to look for a food service franchise that is available in my state. Quality Management Employees who work in operations have various kinds of responsibilities, but the most common and the most important job to handle is the quality management.
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Major fortune 500 companies were getting show more content, for many people franchising has been the opportunity to make really big money, however, for the majority it is simply a license to work seven days. Brand equity is important so that the franchises can always gain the specific benefits from the main consumers awareness,faithfulness and loyalty; on the other hand, it lessens competition during recession. This helps a lot because then the employee doesnt need to disturb the employers for any information but just directly go through the manual. Murphy.11) as franchising can offer the chance of managing a successful business it also can push you to the bottom (you can be broken). 80 of those who do make it through five years will not make it through ten years. Franchising is a business relationship in which the franchisor assigns to the franchisee the right to market and distribute the franchisor's goods or service, and to use the business name. Headlines were everywhere about how some little old lady lost her life savings to some flim flam franchise. If you have a secretary to run your small office, this person commonly handles all of your administrative support activities. Considerations To have a functional and well-run operations unit, the company must be structured and its foundation must be strong in order to run like a well-oiled machine. There are many resources available in this day and age to help assist someone who is thinking about franchising a business. The percentage taken is officially called a royalty. These resources might be paid resources but they look like they are worth every penny spent on them. Get help with your essay today, essay about franchising from our professional essay writers!
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There are also several other features on the resource tab. Layout planning 13, location 15, conclusion 16, bibliography:. Years of essay about franchising hard work melts in moments with the transfer. That can scale the risk down of turning into a low profit company. All of the classes on the IFA University website are paid classes. And after all that, according to Bryant Quinn, business writer for Newsweek,"One third of all franchisees lose their shirts, one third break-even and one third make a profit. I have worked at a franchise of Wendys for 7 years now. The franchisee does not have to waste all the time, cost of expenditure and the effort in building up company goodwill and establish a famous brand name.
The media called it a scam. Quot; Many people feel that buying a franchise is buying a job. When a franchiser is around,it can only mean one thing that is the franchise is well known around and among people, reputed company with extensive customer base and immense brand name recognition. To franchise a Wendys unit you need to go through an extensive 6 month training course which includes training at both the restaurant level as well as field training, and class room training. A right must be granted to the franchisee to engage in the business of offering, selling or distributing goods or services; right must be granted to engage in the business under a marketing plan or system prescribed in substantial part by the franchisor;. A lot of thought must go into owning and running a franchise and is not an easy job and it is a lot to consider. I think that out of the top 3 major brands, Wendys most matches my values. Contents, introduction 3 Advantages of, franchising 4 Disadvantages. Franchising 5 Top 10 franchise ranking 5 Pasta Italia Background.
The cost will automatically increase due to taxes imposed by respective governments. A branded restaurant chain will maintain its sales and competitive power even in times of recession and huge competitivenesss will be around in the catering or cooking industry as the whole brands name is clearly widely well knowned and recognized and favoured by the people. There are 7 main sections of information on this website. The disadvantages to franchising are that the franchisor will lose control over certain aspects of the job. . The events tab is almost like having a personal assistant to keep you up to date on the many events the IFA are involved with.
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But if it is done the right way and is organised for example, essay about franchising if its operating system is being run smoothly, it will surely prosper. The next two tabs on the website offer information about news and media as well as information about government relations. In contrary,by doing this method, the host country would learn a lot from all these kinds of techniques which are very valuable to them. The bigger the power of dependingness of the franchisor company, which definitely has the big organization globally, which has a bigger organization, proves beneficial to the franchisee company, because, the franchisor company has a proven business concept and a thriving operational profile. To run a successful franchise one has to study the market, the franchisor and the product carefully and judiciously. Franchising, associations university page. You can look at the event calendar, get information on the upcoming conference, learn about the symposium, and even get information about the small business summit. Many companies have become successful by opening their branches across the country and in some cases the world.