Franchising

discussion_4.docx

Home >Business & Finance homework help >Marketing homework help >Franchising

Discussion 4-1

Do the benefits of providing proven systems and procedures outweigh the cumbersome paper trail? Why? How would someone who is considering a franchise measure this?

Comment these classmates’ posts

- Post 1

In order for a franchise system to achieve profitable results, the franchisor has to develop and provide the franchisee with systems and procedures to run the franchise. These processes and systems may be cumbersome at times, however the benefits of having a limited risk business opportunity where the system of brand recognition, proven product or merchandise, and training exists would outweigh this (Judd and Justis, 2008). The franchisor has already made the investment of time, resources, and research building a business and has to share and provide as much assistance as possible to the franchisee in order to maintain the effectiveness and profitability of the business. The stakes are very high for the franchisor so the better investment of leading and directing in all aspects of the franchise is most advantageous. From the perspective of the franchisee, having the franchisor share as much information and guidance regarding the franchise and its proven success justifies the franchise fees and saves the franchisee time and resources from having to develop operational strategies for the franchise. This is the easiest way to measure the benefit of this, through time invested.

- Post 2

A business system is the total package for running the business: location, marketing, products, sales process, management and training. It is even more important than having a great product.

Franchises are all about a business system. They tend to take common product or service and build an effective business system around them. The benefits of proven systems outweigh the cumbersome paper trail because you get the experience, the training, the ongoing support, name recognition, and proven marketing and sales system. As compared to starting your own business with no experience you are limited to your own imagination you don’t know if your idea will work or not.

Someone would measure this by identifying the business system that builds his or her strengths and talents. A business system does not run itself; identifying a business that fits your profile is what we call your business model.

Discussion 4 – 2

Find an article about franchise management. Post it to the discussion board with a brief overview. Review the summary of at least two of your classmates and ask a single question that relates to the topic.

Classmate Post 1

According to and article entitled, Advantages, Challenges of Franchising in the International Franchise Association Editor’s Resource, franchising is viewed as playing a vital role in the nation’s economy (IFA, 2006). The article further discusses the advantages and challenges of franchising. The number one advantage is that the franchisee is purchasing years of experience and the proven operating system of the franchisor. This seems to be of most value to the franchisee in that they now do not have to spend the time or money on trial and error. The second advantage is training.

The article goes on to list several challenges one of which includes working with the franchisor. This is likened to entering into a marriage where the franchisee must take the time to get to know the franchisor for whom they will be entering into this long term relationship with. It is recommended that thorough research be done on the franchise and that visits to their headquarters are arranged. The last challenge is listed as managing the business and it is advised that those with little experience seek assistance from the franchisor. More than likely the franchisor will be willing to assist and offer as much guidance and possible as this investment can determine the success with the franchisee down the road.

Classmate Post 2

This article details the many keys to success as well as the pitfalls that current and prospective franchisee see while considering running a franchise. Many different management strategies are discussed as well as ways to keep a "finger on the pulse" of the franchise while running the business. Overall, this is a great article to base general, easy to follow techniques to achieving success in business as a franchisee.