FRANCHISE

Franchise-based business

Franchise-based business

Introduction

In this essay, there will be critical evaluation that whether the franchisees adopting the franchised mode of business ownership is good or not.The discussion will be based on the fast food chains and there will be discussion of the the example of KFC. KFC is one of the biggest fast food chains in the world. The franchise of KFC is found in almost every part of the world ( Combs, & Ketchen, 2003). The franchised mode of business ownership has spread in most parts of the world. Many people consider that this business is very profitable while others believe that there are limitations to it as well. There will be discussion of the advantages and disadvantages of franchise based business in this paper. There will also be the discussion of the implications of the franchise-based business on the owners and the young entrepreneurs. Furthermore, there will be analysis of the fact that why the phenomenon of franchised based business is on the rise. There will also be discussion that what are the disadvantages of the franchise based business. The difference between the entrepreneur and the franchisee will also be analyzed and discussed in this essay. Moreover, there will be elaboration that why most of the entrepreneurs fail and why there has been constant surge in the franchise-based business. In the conclusion, there will be discussion regarding the fact that why the franchise based business has become so successful, that we find the franchises in almost every major city of the world.

Discussion

Today most of the business around us around us that are actually franchised based. The franchise Mcdonalds, KFC, Starbucks and other franchisers are found in almost every big city (Pitegoff, 1989). Franchise is a type of license which a party which is called as franchisee acquires to have a access to a business's (franchisor) proprietary knowledge, trademarks and processes in order to allow the party to provide a service or sell a product under the business's name (Combs & Ketchen, 2005). Therefore, the franchise business operates in this way. In this type of business, both the franchisor and the franchisee are at benefit. It is essential in the franchise business that both the franchisor and the franchisee must agree to the terms before the starting of the business. The process of the franchising started when most of the organizations believed that they should expand their business but due to insufficient resources, they were unable to do so. Similarly, on the other hand, there were many people who could finance their business but they were lacking experience and professionalism (Stanworth, Purdy,Price, & Zafiris,1998). Similarly, after some time the process of franchising emerged. With the help of this process most of the expanded themselves to greater extent. In the beginning the franchising was done in the same city and after wards the franchises of a particular business were opened in the different cities of the same country. Later on, the franchising became an international phenomenon (Darr, Argote, & Epple, ...