Application/Activity

Essay: (30pts.)

1. Explain the advantages of franchising in the restaurant industry.

The advantages of franchising in the restaurant industry is a
restaurant franchise is instant brand recognition. Customers are familiar
with your brand, so you don't have to build customer trust from scratch.
Additionally, franchise needs such as fixtures, equipment, and furniture
are typically procured in bulk by franchisors.The franchise concept
benefits both the franchisor and the franchisee. Although there are some
overlapping benefits, the focus is on the benefits for the franchisee. We
use the term relatively because we understand that when we hear "low
cost", tens of thousands or hundreds of thousands of dollars is usually not
what we think of. However, franchising seems pretty tame compared to
starting your own business from scratch that could fail at unknown costs
within his first year. The restaurant industry is highly competitive, so if
you're overwhelmed by the budgets of big brands, it's hard to survive
unless you're already established. Franchising removes this barrier by
allowing you to operate under a brand that already offers the services and
products you need.One of the benefits of franchising is that you already
know what works and what doesn't. You have survived the trials and
tribulations of your new venture and have established a system for
success as a result. As a franchisee, you benefit from the learning curve
already experienced by members of the franchise family.The steps of
developing a plan, securing funding, and putting it all together are
fundamental to starting a business. With franchises, the startup process
has been refined over time, and you'll enjoy the support of a team of
experts every step of the way. One of the biggest benefits of franchising
in the restaurant industry is that of an established training and support
network. The franchise thrives on its proven methodology. This
methodology can be replicated and shared for continuity across all
locations. Franchisees promote their brands, and thus your business,
through a wide range of advertising campaigns, through online
advertising, television, radio, and other high-profile platforms. As a
franchisee, you benefit from the experience and expertise of a dedicated
marketing team whose sole purpose is to benefit your brand. Teriyaki
Madness uses every opportunity available to market your business and
draw customers to your restaurant.