Aloha Training.docx - As per Saleem Chandhoke Knight(2002 Franchising is an arrangement where one party(the franchiser grants another party(the

Aloha Training.docx - As per Saleem Chandhoke Knight(2002...

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As per Saleem, Chandhoke & Knight,(2002) “Franchising is an arrangement where one party (the franchiser) grants another party (the franchisee) the right to use its trademark or trade-name as well as certain business systems and processes, to produce and market a good or service according to certain specifications”. The franchisee usually pays a one-time franchise fee plus a percentage of sales revenue as royalty, and gains (1) immediate name recognition, (2) tried and tested products, (3) standard building design and décor, (4) detailed techniques in running and promoting the business, (5) training of employees, and (6) ongoing help in promoting and upgrading of the products. Therefore, the aim of this study is to research and evaluate the major issues and factors in buying a franchise. Buying a franchise offers many other advantages that aren't available to the entrepreneur starting a business from scratch. Perhaps the most significant is that you get a proven system of operation and training in how to use it. New franchisees can avoid a lot of the mistakes startup entrepreneurs typically make because the franchisor has already perfected daily operations through trial and error . However, we must to do in-depth research before investing in a franchise. Advantages: As per Frisch, (2009) , following are the advantages of Franchisee. 1. The Experience of the Franchisor: When an individual buys a franchise, he or she purchases the years of experience and the proven operating system of the franchisor. One franchisee expressed it this way, “What I have learned from the franchisor was worth ten times what I paid for the franchise.” In any new business, much time and money are spent in trial and error, but a proven franchise may eliminate many of those start-up problems, allowing one to open a franchise with little or no previous experience in a given industry. 2. Training: A good franchisor will provide training for new franchisees. This is usually done at the home office and at the franchisee’s place of business. Training should prepare new owners for all facets of the business. 3. Buying and Advertising: Most small-business owners cannot afford to inventory products in bulk or do extensive advertising. The franchisee buys this advantage when he or she buys the right to use the franchisor’s purchasing power and advertising – most franchisors provide advertising help and direction. Furthermore, as the number of franchisees increases, so does public awareness of the franchise, which can be a tremendous advertising advantage.
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4. Ongoing Advice, Research and Development: Franchisees need help throughout the term of their business endeavors and the franchisor’s staff can give this needed help in all aspects of the business. The franchisor can also provide ongoing research and development so that new products and services will be made available to franchisees.
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  • Fall '17
  • jane smith
  • franchisee, KSA

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