Abhishek Amin

ISM Period 7

"What is franchising?" Franchising World, June 2006, p. 48. General OneFile,

Accessed 24 Mar. 2017.

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%7CA147665371&it=r&asid=c2a8a42e9fd357c4412a96e6f1fa5e87.>

There are lots of types of franchises

One out of every seven dollars spent is at or for a franchised business
Most real estate companies are franchised businesses
Companies used by franchises are often franchised businesses
Franchising is a method of marketing a product or service that is adapted for a
wide variety of businesses and industries
The word franchise actually means free
However, with franchising there are a lot of commitments and responsibilities that
the franchisee has to follow
There are two forms of franchising the first is product distribution arrangements
and business format franchises
Business format franchise are the whole platform of a business from trademark
and logo to the set up of the business
Basically in a business format franchise you are paying for the actual experience
and training from that franchise
A product distribution agreement is simply just where it is an arrangement over a
single product rather than a model for a business
Franchising offers people the freedom to own, manage, and direct their own
business by offering corporation support
product distribution arrangements in which the dealer is to some degree, but not
entirely, identified with the manufacturer/supplier
business format franchises in which there is complete identification of the dealer
with the buyer
A franchise offers a lot of support such as site selection, personnel training, and
business set-up
Additionally, a franchise offers advertising and a product supply to the franchisee
at a reduced cost
By franchising you are buying someone elses expertise, experience, and method
of doing business

This resource gave me information on the basics of franchising as well as the two basic
ideas.
 Abhishek Amin
ISM Period 7

Siebert, Mark. "The 9 Advantages of Franchising." Entrepreneur. Entrepreneur.com, 04

Dec. 2015. Web. 27 Mar. 2017.

<https://www.entrepreneur.com/article/252591>

The most common barrier to expansion faced by small businesses is the lack of
capital
Franchising provides an alternate way to receive capital
It allows an owner to expand without the risk of debt or the cost of equity
There is virtually no contingent liability for the franchisor
It will also provide good management for the building
The owner substitutes as the manger in a franchise so there is no risk of losing one
or them leaving
The owner or franchisee will often have a lot of their money invested so they
would be highly interested in the success of their business
The owner will not walk away and will stay fully invested
There will be better quality management since the owner knows more about the
business
There will be an improved flow of operation as people take ownership very
seriously
The owner will also provide innovative ideas since they are financially invested in
the corporation
There will be increased speed of growth since there is a premade business platform
to build off of
There will be more leverage on the staff since the franchise will take up most of
the jobs a owner would normally do
Since they take away a lot of these tasks it leads to more easy supervision of
employees
There would be an almost guaranteed chance of increased profitability since there
would a more recognized organization
With all these changes taking place there would be an increased value of the
business
This expansion would allow access to new markets, such as secondary and tertiary
markets
The most important factor once again is the fact there is very little risk, there is so
much on the line for a small business but by franchising a a lot of it goes away as
its the big companies money
 Abhishek Amin
ISM Period 7

This resource gave me in depth information about the benefits of franchising a

business.
Siebert, Mark. "The 9 Advantages of Franchising." Entrepreneur. Entrepreneur.com, 04

Dec. 2015. Web. 27 Mar. 2017.

<https://www.entrepreneur.com/article/252591>

The most common barrier to expansion faced by small businesses is the lack of
capital
Franchising provides an alternate way to receive capital
It allows an owner to expand without the risk of debt or the cost of equity
There is virtually no contingent liability for the franchisor
It will also provide good management for the building
The owner substitutes as the manger in a franchise so there is no risk of losing one
or them leaving
The owner or franchisee will often have a lot of their money invested so they
would be highly interested in the success of their business
The owner will not walk away and will stay fully invested
There will be better quality management since the owner knows more about the
business
There will be an improved flow of operation as people take ownership very
seriously
The owner will also provide innovative ideas since they are financially invested in
the corporation
There will be increased speed of growth since there is a premade business platform
to build off of
There will be more leverage on the staff since the franchise will take up most of
the jobs a owner would normally do
Since they take away a lot of these tasks it leads to more easy supervision of
employees
There would be an almost guaranteed chance of increased profitability since there
would a more recognized organization
With all these changes taking place there would be an increased value of the
business
This expansion would allow access to new markets, such as secondary and tertiary
markets
The most important factor once again is the fact there is very little risk, there is so
much on the line for a small business but by franchising a a lot of it goes away as
its the big companies money
 Abhishek Amin
ISM Period 7

This resource gave me in depth information about the benefits of franchising a

business.
Siebert, Mark. "The 9 Advantages of Franchising." Entrepreneur. Entrepreneur.com, 04

Dec. 2015. Web. 27 Mar. 2017.

<https://www.entrepreneur.com/article/252591>

The most common barrier to expansion faced by small businesses is the lack of
capital
Franchising provides an alternate way to receive capital
It allows an owner to expand without the risk of debt or the cost of equity
There is virtually no contingent liability for the franchisor
It will also provide good management for the building
The owner substitutes as the manger in a franchise so there is no risk of losing one
or them leaving
The owner or franchisee will often have a lot of their money invested so they
would be highly interested in the success of their business
The owner will not walk away and will stay fully invested
There will be better quality management since the owner knows more about the
business
There will be an improved flow of operation as people take ownership very
seriously
The owner will also provide innovative ideas since they are financially invested in
the corporation
There will be increased speed of growth since there is a premade business platform
to build off of
There will be more leverage on the staff since the franchise will take up most of
the jobs a owner would normally do
Since they take away a lot of these tasks it leads to more easy supervision of
employees
There would be an almost guaranteed chance of increased profitability since there
would a more recognized organization
With all these changes taking place there would be an increased value of the
business
This expansion would allow access to new markets, such as secondary and tertiary
markets
 Abhishek Amin
ISM Period 7

The most important factor once again is the fact there is very little risk, there is so
much on the line for a small business but by franchising a a lot of it goes away as
its the big companies money

This resource gave me in depth information about the benefits of franchising a

business.