Franchising And Business Essay

1035 words - 4 pages

A franchise is commercial relationship between the owner of a trademark, service mark, trade name, or advertising symbol and an individual or group wishing to use that identification in a business. sort of like McDonalds, or Taco Bell. The franchise governs the method of conducting business between the two parties. Generally, a franchisee sells goods or services supplied by the franchisor or that meet the franchisor's quality standards. Franchising is based on mutual trust between the franchisor and franchisee. The franchisor provides the business expertise (marketing plans, management guidance, financing assistance, site location, training, etc.) that otherwise would not be available to the franchisee. The franchisee brings to the franchise operation the entrepreneurial spirit and drive necessary to make the franchise a success.Advantages would be that some franchises let you be your own boss (at least to a point) as apposed to working for an employer. Franchises offer you the chance to go into business yourself even if you are lacking in money or business experience. Get a head start. Compared to normal start-up companies, franchises provide a head start to the business owner by providing support on an as-needed basis. In several time a lot of people Gain additional training and assistance. Profit from name recognition. One of the most difficult things to do when starting a business is to develop a recognizable presence with your customers. This usually only happens over time. Franchises eliminate this hurdle by developing an image in the marketplace. This is important because it saves you both time and money.Some Disadvantages would be that you must play by the rules. If you are buying a franchise because you can't stand working for someone else, you may want to think twice. When you buy a franchise, you are not free to do as you please. In many cases, franchisors require you to play by their rulesNothing is ever free. Also to the initial franchise fee you will have to pay, most franchisors require that you pay a percentage of your monthly gross sales back to the parent company. People wanting to going into the franchise business have to keep all of this in perspective.A company's employees should practice business ethics, which involves following a set of principles when conducting business. It's basically in a way a company's responsibility to its customers, employees, stockholders, and creditors. Treating the customers with respect and knowing that whatever decision is made can and will affect the investors and creditor. Making a good ethical decision and managing a good business is the key.An unethical decision would be for example me. In my experience I've honestly have done a lot of unethical decisions. Its good for me and the company but the one who suffers financial is the customers. People do that all the time, they do something that would beneficial to them at the cost of somebody else.One thing that I wouldn't forget would be that...

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