1.
Introductory Speech:
Today’s business world is very much competitive.
That’s why in current world business situation, only entrepreneurial skill is
not enough to be successful in short term. If experience and goodwill of famous
companies can be used with your talent then it could be a better decision and
success will be possible within a short period of time.
2.
Franchising:
Franchising is the practice of using another firm's
successful business model. Franchising is a system used by a company (franchisor)
that grants others (franchisees) the right and license (franchise) to market a
product or service under the franchiser’s trade names, trademarks, service
marks, know-how and method of doing business.
The
following are the summary about Franchising:
a) There is a contractual relationship, with
right and responsibilities of each party defined, for a specified period of
time.
b) It allows the entrepreneur to use all the
knowhow and experience of the parent company, such as the name, logo,
production techniques, training methods, and expertise.
c) The purpose of the relationship is the
efficient distribution of a product or services.
d)
The franchisee usually adds operating capital as well as managerial
resources for the operation
3. Historical Evolution of
Franchising:
Many believe that Albert Singer, founder of the
Singer sewing machine, was the initiator of franchising. However, the concept
of franchising really began long before.
During the 1840's, several German
started franchising through ale brewers.
Franchising then traveled from
European brewers into the United States.
Albert Singer in 1851 with the Singer Sewing Machine Company made use of franchising. He is the first actual name recognized as an early franchisor.
In the late 1800's and early 1900's
many other forms of franchising took place.
The modern leading form of
franchising, known as business format franchising, became popular post World
War II.
4. Why Franchising?
The
nature of franchise business is the recent innovation in the form of
business. The main purposes that are set
to be achieved through franchise business include the following:
1.
To restore individual entrepreneurship.
2.
To provide an easily recognized and
accepted product or service.
3.
To compete with big business.
4.
To allow consumers to buy good quality
item or services at the right price yet still deal with a local merchant.
5.
To provide entrepreneurs a means to
enter business with a low capital investment and risk.
The nature of
franchise business usually fits in the process of small business.
Entrepreneurial initiatives can get access to extra-territorial business
through franchise. One can get to business with much of technical &
financial arrangement.
So, in conclusion we can say that,
“Buying a Franchise a Good Way of an Individual Setting up
a Business”
2 comments
This is nice stuff about franchising. Now a days competition in business is increasing day by day so every business man should think about business growth using some strategy like franchise which is one of the effective technique that every businesses used.
popular companies
Thanks for your comment.
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