The article talks about how the new and upcoming entrepreneurs prefer franchising over starting their own ventures. This is because of the fact that franchised business has a better brand name and more chance of success over a new venture. The risk factor is greatly reduced by using the franchised brand name rather than starting a new venture. There are also certain problems for the franchisee. The main problem is the high franchise fee for a trusted brand name. It goes up to around $75000 and $100,000. There is also a need of contingency fund needs for inventory and till the time business experiences an increase in sales. (Hanks)
British Columbia has made some legislation in the field to make franchising a more regulated business venture. The proposed legislation is based on Universal Franchises Act. The lawmakers and legislators are also asking for public comments on the issue in order to introduce new laws that will serve the interest of both the franchisee and franchisors.
There is also more documentation needed once the terms are finalized between the franchisee and franchisors. The law also provides both the parties a two week cooling period in which to disclose all the documents and agreement between the franchisee and franchisor. There is also a resolve among the law makers that the new proposed legislation will not be a financial burden on the franchisee or franchisor, but it is only done to make sure that these businesses come under the regulation of the law and the government control. This will make things better for both parties and will ensure an environment that is less risky and favorable for both parties. (The Global Mail)
References
Hanks, Tracy. 'Young Entrepreneurs See Big Opportunities In Franchising'. The Globe and Mail. N.p., 2014. Web. 1 Dec. 2014.
The Globe and Mail,. 'B.C. Government Seeks Stakeholder Input For Proposed Franchise Law'. N.p., 2014. Web. 1 Dec. 2014.
