hey fellas! its been quite a while since my last post, right? well, the thing is I've been quite preoccupied with school work, quite hectic! trust me, you wouldn't want to be in my shoes. for the past two weeks in my entrepreneurship class, it's been FRANCHISE, FRANCHISE AND MORE FRANCHISE!so I'm gonna have to follow the train, thus I'll be discussing on the concept of FRANCHISE.
WHAT IS A FRANCHISE?
“A franchise is any arrangement in which the owner of a trademark, trade name or copy right has licensed others to use it in selling goods and services.” (Donald 147)
WHO IS A FRANCHISEE?
‘A franchisee is the purchaser or buyer of a franchise.” (Donald 147)
WHO IS A FRANCHISOR/FRANCHISER?
“A franchisor is the seller of the franchise.” (Donald 147)
ALTERNATIVE DEFINITION OF TERMS
“Á franchise is a business arrangement in which the developer/owner (the franchiser) of a business concept grants others (the franchisees) the license or right to own and operate a business based on the franchiser’s business concept.”
A franchiser is the owner of the business organisation
A franchisee is the person granted the license to own business.
TRAINING AND GUIDANCE: The franchisee receives adequate and valuable training and advice from the franchisor.
A PROVEN TRACK RECORD: for an individual who is buying a franchise from a long existing company, he is rest assure that the business is going to thrive well, especially if the company has many franchises that are also doing well.
BRAND NAME APPEAL: An individual who buys franchise from a popular and successful company will be at an advantage.
FINANCIAL ASSISTANCE: The franchisor might be willing to offer some sort of financial assistance to the franchisee, to start up his franchise and to payback only after the business has begun running smoothly.
DISADVANTAGES OF FRANCHISING
EXHORBITANT FRANCHISE FEES: With the numerous fees that accompany franchising, one begins to wonder if owning a franchise is the most convenient business idea.
FRANCHISOR CONTROL: every business owner would like to be in control of his/her business, however this is not entirely possible for the franchisee because the franchisor would need to monitor the various units to ensure that uniformity is maintained. Franchisees who do not comply, risk losing their licenses.
UNFULFILLED PROMISES: This is especially exhibited by less successful and less popular franchises, whereby they do not fulfill promises made to the franchisees. This makes business difficult for the franchisees and those who complain risk losing their licenses.
INTERNATIONAL FRANCHISES
AARON’S INC: Aaron’s is a company that deals in furniture, electronics, appliances and computers. They are involved in sales and lease ownership, corporate furnishing and manufacturing (Aaron's, Inc. Company Information).
ROCKY MOUNTAIN CHOCOLATE FACTORY: Rocky Mountain is an international franchise based in the U.S.A., Canada and the United Arab Emirates. They deal in chocolate candies and other confectionary products, which are delivered fresh by its refrigerated trucks (Rocky Mountain Chocolate Factory).
IN NIGERIA; Tantalizer is a fast food restaurant located in Ibadan, Oyo state and also in Lagos.
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