Advantages and disadvantages to franchise ownership

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Reference no: EM133055365

Using the following prompt, write a short 500-word response either for or against fast food franchising.

At Issue

Franchising has been both heralded and condemned in this country. There are many advantages and disadvantages to franchise ownership for both the franchisee and the franchisor, as well as for the general public. Some critics claim that fast-food franchises have all but eliminated the culinary arts from this country. Should fast-food restaurants be curtailed from national franchising?

 

For Franchising

 

Against Franchising

1.

Franchising provides national and sometimes international consistency of products and services for people who must travel and may be uncertain about local businesses.

1.

Franchising destroys the local entrepreneur's incentive inasmuch as infant businesses cannot compete initially with large corporate franchises.

2.

Franchises bring jobs and incomes to local communities that smaller, local businesses cannot create.

2.

When a franchise is sold, many of the franchise dollars and subsequent installment percentages are returned to the corporate office for use in other communities. As a result, money is actually removed from local communities.

3.

Franchising allows people of moderate and wealthy means a meaningful and convenient way to invest in worthwhile businesses that directly serve the public. It also enables those with less business experience to own their own business with less risk. 

3.

Franchising rarely allows an owner-manager enough flexibility to creatively manage, develop new ideas and ways of doing things, or "fine-tune" the business to local needs.

Reference no: EM133055365

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