Question

1. CASE STUDY

The Allure of Franchising

Neil Erlich knew that he wanted to be an entrepreneur when he helped start a contracting business when he was just 14 years old. During his junior year at Sonoma State University, Erlich, with help from his father, a corporate executive, began investigating franchise options that would suit his interests and skills. They honed in on the automotive service industry and reviewed the regulations of several franchises, including Total, Jiffy Lube, and Midas, before settling on Express Oil Change. Erlich was particularly impressed with the support that Express Oil Change offered its franchisees. When Erlich graduated with a business degree, his father put up $375,000 to help him purchase and set up the $1.5 million franchise operation. Erlich, who is the youngest franchisee in the Express Oil Change system, sees the franchisor’s support as one of the greatest benefits of choosing to open a franchise rather than an independent business of his own.” The franchisor is there for you," he says. "It’s very comforting. "

Like Erlich, a growing number of college graduates and twenty-something adults who are disenchanted with the prospects of a dull job in the corporate grind are looking to franchising as a promising career choice. Indeed, franchising is attracting people of all ages and backgrounds, from corporate dropouts and military veterans to retired Baby Boomers and corporate castoffs.

” People say, ’I put 20 years into a company, and because they ran into some tough times, they let me go,’” explains Ray Titus, head of the United Franchise Group.” They think, ’Do I want to put myself into a position where I may get laid off again?’ Instead, they take control of their future by running their own businesses." For many of them, franchising is the perfect fit.

Retirees who are looking for second careers also are turning to franchising as well. "They’ve got school-of-hard-knocks experience and business skills that they can apply on day one at a franchise," says Michael Shay of the International Franchise Association. Judy Divita, a retired corporate human resources manager, and her husband Charlie, a retired college professor and consultant, decided to embark on second careers as franchisees rather than stop working. After researching franchise opportunities, they opened a Subway franchise in Columbia, South Carolina, not far from where Charlie had taught at the University of South Carolina. Over the next nine years, the Divitas opened five more sandwich shops in Columbia, including one on the university campus. In addition to their built-in market of college students, they target the players on the athletic teams that come to campus to participate in more than 400 sporting events ranging from baseball and football to basketball and volleyball each year. The Divitas have won the MVP Award Winner for Innovation from Multi-Unit Franchisee magazine. Their nine outlets generate $4.5 million in annual sales, and the couple’s goal is to have 13 Subway locations within 10 years.” The franchise gives you the basic things to put you in business pretty quickly," says Charlie.” You have to take it beyond that and be creative to come up with novel ways of doing things that are particular to your company and your community.”

Franchising can be the ideal path to owning a business for people in almost any phase of professional life, whether they are retirees looking for a new direction and extra income or recent college graduates who are ready to embark on exciting careers. "Boosted by a brand name, training, advertising, and an established business plan, a franchise can ease the struggle and the risk of opening a business and still let you call some shots,” says one business writer.

THE QUESTION IS :

1. These examples show people at different stages of their professional lives choosing to become business owners with the help of a franchise. What conclusions can you draw from their stories about the benefits and appeal of franchising? (300 words - 40- marks)

( Please i need 300 words for this answer and be like a essay body and without copy paste from google i need your answer Thank you <3 )

Answer 1

Franchising is a very viable business idea since you will be backed up by a bigger organization. Having a business will make people self-reliant. The emotional satisfaction and money coming along with it are the motivating factors for most to venture into business. There are several ways to do so like starting a startup business, starting a standalone company with an already successful business model or taking a franchise. Risk is a part of any business as there will be many pitfalls, how well the planning many be. Especially for someone who does not have practical knowledge of business. Starting a franchise will bring the risk factor down to a great extend as franchises are often offered by companies those are well established. They will make the design, will train you and your staff on the aspects like how to operate the business. The downside of this model is that you will have to invest a considerable amount of money into the business. Profit will have to be shared with the franchiser and hence you will take a longer time to break even when compared to other business models. The business will not have opportunities for growth as well, unless you opt to start other branches of the same franchise. It will be great option as a second career. If you are doing good with your business or career, investing in a franchise will be good in the long run. Failure of a franchise is not so common as it is with other types of business models. You will just need to set the initial planning right. So, if that part can be perfected, it will provide you with a steady monthly revenue. Of course you will have to put in time as well. Overall, it is a good investing opportunity considering the minimal risk factor when compared against other models of business.

Note: The essay can be prepared as above. You need to understand the difference between various business models and what makes franchises attractive. Combining that information with the case study will be a good exercise.