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It has been said that franchising allows the small business person to find a cheap and secure way to success without much management experience. Is this true?

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Introduction

It has been said that franchising allows the small business person to find a cheap and secure way to success without much management experience. Is this true? INTRODUCTION: It is undoubtedly true to say that deciding whether or not to go into business is a very important step in the business start-up process for new and potential small business owners. Due to the risk and the amount of work involved in starting a new business, many new and potential small business owners choose franchising as an alternative to starting a new, independent business. However, it is important to realise that the success of any small business, including a franchise, need to include factors such as the right guidance, support business networks and the correct infrastructure for the given area in which the new franchisee is operating. This report will commence with an explanation of what franchising is, how successful it appears to be, and finally will give the advantages and disadvantages in order to verify whether franchising is an easy way to success. FRANCHISING Franchising is both an old and new concept that became recognised in the 1800s. The term from the French originally meant to be free from servitude. Its meaning in the context of present-day, is the opportunity for an individual to own his or her own business, even if he or she is in experienced or lacks adequate capital. By definition, a franchise is a form of business organization in which a firm which already has a successful product or service (the franchisor) ...read more.

Middle

Many believe the success of McDonalds is the committed management that drives the franchisees to be motivated, well alert of their market and therefore make profits for the company. WSI Internet Company WSI Internet has only been going for the past 8 years and has managed to establish more than 700 franchises in 87 countries6. In the year 2001, it was the number one fastest growing business service franchise, and fourth fastest growing franchise in the world7, leading it to be one of the most profitable franchise opportunities in the world today. With such impressive success rates in franchising, this is a perfect opportunity to join while still ensuring a fairly low cost investment and secure. WSI Internet basically help small and medium sized companies within a community to profit from the internet. They insist that not much experience is required as it offers its franchisees a complete and comprehensive training and certification programs, along with a dynamic on going support program. The capital required is approximately $40,000. Cleaning Doctor Cleaning Doctor was first established in the mid 80's in the UK and Ireland. Today it offers franchise opportunities, giving comprehensive support in a home-based, low-cost, high-profit. Cleaning Doctor is basically a cleaning service for carpets upholstery. Each franchisee is afforded the opportunity to replicate a proven Cleaning Doctor franchise option in his or her exclusive territory. The success of this company is inevitable and asks for an investment fee of around �50008. ...read more.

Conclusion

As the U.S. and world economies grow with the ever increasing populations, and the move toward free market economies, new franchise concepts will come on the scene and the well-managed existing franchise companies will continue to grow. There is a move toward better protection of franchisee rights and over time this will push more franchisors towards structuring their relationships with their franchisees in a totally positive manner. Franchising is evolving, it's getting better conceptually and in reality. There are greater opportunities for wealth creation among both franchisees and franchisors today then ever before. The future of franchising is bright, and if a person wanted to take a step into business for him self, then franchising is the path to take in the 21st century. CONCLUSION It can therefore be concluded that franchising is a convenient and economic means for the filling of a drive or desire (for independence) with minimum risk and investment and maximum opportunities for success through the utilization of a proven product or service and marketing method. Statistics indicate that franchises grow more quickly, reach break-even sooner and succeed more often than independent companies in the same industry. Therefore, you are lowering your risk factor when you buy a franchise14. Thus, franchising will allow the small business person to find a cheap and secure way to success without much management experience just as long as it is clear to them that it is not an easy path. This might not need much money and experience as all training is given and it secure and less risky, leading to inevitable success just as long as the hard effort, commitment, strategic planning and motivation is incorporated. ...read more.

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