TASK # 1

Years ago, it was predicted that the emergence of franchise trends would
be a revolutionary and industry-changing effort. Why franchises are so
widespread today and lure customers in with a large selection of alluring goods
is hardly a mystery. Franchising is a strategy that involves adopting the successful
business model of another company. A franchise is a marketing and distribution
method in which the franchisor offers a person or business (the franchisee) the
right to operate a business that sells goods or renders services. By paying
franchisees, a business can expand into a new market through a franchise. It is
more of a marketing concept than a business in and of itself, one that signals a
significant shift in the way goods and services are distributed.
A franchisor is a person who has created a business model and allows
another person (a franchisee) the privilege to use it in exchange for a fee.
Successful businesses are duplicated and run by franchisees, also known as
owners of the brand. In a long-term commercial partnership known as franchising,
the franchisee pays for planning, hiring employees, managing operations, and
merchandising.
A franchising business has a practical or positive side and it can also have
a negative effect for the business.
To better understand what is a franchising business, here are some
characteristics of a franchising business:
Positive or practical side;
1. It is a copy of a productive business structure. Therefore, it only
applies to businesses that can be easily copied and reproduced.
Anyone can own a franchise business, as long as they know how to
manage and maintain one.
2. It is an agreement to sell the goods or services of a company owner
to any interested party in exchange for a set price or commission.
Owning a franchise business can be beneficial to both parties.
3. Consistent operations across the entire organization typically result in
increased productivity and higher quality standards. It is reasonable
to assume that when you purchase a franchise for a well-known
company, your net worth will always be accessible. Because owning
a well-known company as a franchise may provide you with a
competitive advantage.
 Negative side;
1. The franchisee is not given ownership of the goods or services; rather,
the franchisor retains all ownership rights. One may think that having
or owning a franchise business means it’s in their ownership. No, that's
not how it works. You can't sell any other products that you want. The
only things that you can sell are the products of the business that you
franchised.
2. It also has a contract for a set amount of time, and it may be
terminated prior to the end of the franchising period. This usually
occurs when a company does not have a solid track record of
profitability.
3. Sharing personal information with franchisees is costly if they are not
completely committed to the company, and selecting the wrong
franchisee can harm the reputation of the entire franchise industry.
Choosing a franchisee can actually be detrimental to the franchisor
and the entire enterprise. As a result, the franchisor must be very
selective in who they trust.

Upon my research, here are the 5 of the biggest franchises in the Philippines:
1. Jollbee
2. Potato Corner
3. 7-Eleven
4. Petron
5. The Generics Pharmacy
When it comes to franchising, I would go with the Potato Corner because
the franchise fee is lower than the other four stores. It is also easier to maintain and
handle due to the limited menu variety. You can never go wrong with a food
business, especially if you plan to serve fries. The Potato Corner is an example of
a franchising business. As the business grew, more stalls were added, and the
Potato Corner became well-known across the country.
Here is the price of a Potato Corner franchise: It varies depending on the
size of the cart: a school cart costs Php 230,000, a standard cart costs Php 385,000,
and a customized store costs Php 265,000 plus the real cost of building.
Franchising can be extremely beneficial to the nation's economy because
it not only increases employment opportunities, consumer growth, and tourism,
but it also offers a business to those people who want to start a business of their
own and make a profitable profit out of it.