A homework question, please help!
2006-10-20 20:00:53 · 7 answers · asked by No-one 4 in Business & Finance ➔ Other - Business & Finance
And where did they originate from?
2006-10-22 16:42:15 · update #1
Normally franchises are dealing in one brand so they can able to provide variety of choices to their consumers where as non franchises are normally deal with more no. of brands so they can not provide choices to their consumers.
2006-10-20 20:08:44 · answer #1 · answered by slimshady3in 4 · 1⤊ 1⤋
I would say part brand recognition, part strength in numbers (money, number of stores). If one or a few stores out of many are failing yet the rest of the chain is strong, it gives the company more slack to adjust since the stronger stores are making more of a profit then there are losses overall.
The following was taken from the site below:
"Independent, non-franchise businesses have a much higher likelihood of failure within their first year than franchises. One of the most compelling reasons is that, in a franchise operation, the franchisor provides business expertise (marketing and advertising plans, management guidance, financing assistance, site location, administrative support and training) that otherwise would not be available to businesses starting from scratch".
2006-10-21 04:05:21 · answer #2 · answered by john_reclude 2 · 0⤊ 0⤋
1 reason ONLY. The have a System! They have a plan that works. 80% of all small business's fail the first year. That leaves 20% which 80% of them fail the 2nd year. And by the 5th year there is less than 1% left and the rest lost Everything. But that 1% that made it had something that worked. They developed a SYSTEM and they started selling it to whoever wanted to follow them.
Think of McDonald's. Are the owners of McDonald's interested in burgers, fries and shakes? All they care about it the business.
Are the Owners of McDonald's ever in there making burgers fries and shakes? Of course not, they are out opening more McDonalds. The Business Runs Without Them. And when people are looking to get into a business they really shouldn't care much about the product, they need to look at the system!
It's what Sam Walton did. He had 1 store, Wal-Mart. And once he had that store running Smooth and perfect he opened a second store. Then a third. And once he found a plan that worked he did it over and over again. He took over the whole market. McDonald's started the Entire Fast Food Revolution. One idea with a System can change an entire industry.
That's what Hubert is doing in the real estate and mortgage industry with World Leadership Group. We are doing a great service to people. The Vision of our company is to help people get more mileage out of the same dollar. And when people choose the right mortgage, then we teach them what to do with the money they are saving because of the Right Mortgage, they can become financially free on the same dollar.
I've been in a real estate broker for years and I closed my own real estate and mortgage company to join Hubert in his crusade.
I do real estate and mortgage seminars every Tuesday and Thursday night at my office in Orlando, FL and I host the meetings online through a webex conference. Email me and I'll get you over the information if you'de like to listen in for an hour. Of course it's free, but the information you'll learn will change your life forever. It's changed the lives of me and wife. Talk with you soon and Good Luck!
2006-10-21 03:19:34 · answer #3 · answered by Anonymous · 1⤊ 0⤋
They start out with a firm business plan that is a proven success.
They are able to buy in bulk , which increases their profit margin greatly.
To own a franchise, you must complete a business course.
None of these things are handed to non franchise business owners.And trust me, I have seen many of my neighbors fail at starting new business.
Tis sad, but, true.
Good Luck with the homework.
2006-10-21 03:14:23 · answer #4 · answered by donamarie_1 3 · 1⤊ 0⤋
Buying a franchise is less risky than starting an independent firm. The franchisor OFFERS A PRPOVEN CONCEPT, RECOGNIZED NAME, guidelines and training in return for an up-front fee and a percentage of what the franchisee, the buyer of a franchise, makes each year.
2006-10-21 03:16:42 · answer #5 · answered by JFAD 5 · 1⤊ 0⤋
They have a higher rate of success due to the following factors:
*strong advertisement - one is required to pay for a monthly advertisment fee so name retention is much more possibel
*training-one you to opt to franchise , you and your employees are trained on financial and operation aspect of the business
*years of experiance in the business is the being given to you for a fee
although there is a high rate of success in exchange for that are fees and fees and more fees. In business, there is no such thing as too good to be true. Everything has to have a financial exchange.
2006-10-21 03:14:41 · answer #6 · answered by princesspretty732006 1 · 1⤊ 0⤋
Brand recognition
2006-10-21 03:03:23 · answer #7 · answered by ? 7 · 2⤊ 0⤋