Franchising has been my dream business because it can allow the company to grow with the invested capital. Moreover, the customers of the Fran Source will recoup their franchise businesses via the sale of the first two to three franchises. After starting the business, I have a plan of putting the owner of the business in charge because franchising allows the operation of qualified managers to work in different locations rather than employees. The demand for a new business is a great deal regarding time, sacrifice and effort. Therefore, I should motivate the owner of the business plus its invested capital in the business.
Competitive advantages
Rapid expansion. Franchising authorizes the simultaneous opening of multiple units, and this will gain the base for the business than the competitors. Secondly, greater buying power. There is negotiation for bigger discounts from the vendors and suppliers. Similarly, sharing of some savings with franchises give higher operating margins that are competitive as compared to other similar businesses.
Growth areas in the economy
There are several opportunities while starting personal businesses with a franchise that is having a strong success history and provides adequate training support like McDonald’s. Therefore, these are some of the growth areas that were put into consideration: Staffing. Temporary staffing is considered to be the fastest growing sectors of our economy and according to the American Staffing Association, both temporary and contract staffing services have set new yearly records and this growth is expected to be continued throughout 2015. Secondly, IT Support. All big corporations have their information technology department. However, small and medium-sized enterprises cannot afford the in- house staffing of IT. Therefore, IT based companies should be contracted to handle the maintenance of internal security and to keep these important systems humming. Consequently, it is important for franchise firms to fill this growing need.
Thirdly, service of the business. Companies should assist other businesses by improving their efficiency to show that there is strength in the current economy. However, the corporate Americans are operating on a lean budget. Therefore, they lack resources for studying their in-house systems and always rely on consulting companies. This will enable the investment to pay more than itself. Lastly, digital advertising. Many established businesses with long time workers may not be experts in technology, especially in the social media. Such businesses will hire the experts as part of the integral components of the 21st-century marketing. Therefore, this area should be focused on to enhance proper economic growth.
Concerning the price of the franchise in McDonald's, one will need a minimum of $ 300,000 that is not borrowed, but a personal resource for a consideration of a franchise (Daszkowsk). Franchising is a good business, especially in McDonald's because in McDonald's; one will be trained and the necessary materials for the success of the business will be provided. These include world-class training, support, and services. Moreover, there is a surety of winning franchise with the guaranteed presence of the community and predictable proceeds. McDonald's also offers special incentive programs for the participation of the minority franchising. Similarly, one will enjoy a recession market proof because the company is serving around thirty million people around the world on a daily basis. Since McDonald's is the most recognized premier franchising company around the globe, it offers a world-class training before one becomes an operator.
Works Cited
Daszkowski, Don. "Do You Have What It Takes to Run a McDonald’s Franchise?” About.com Money. N.p., 2016. Web. 16 Mar. 2016.
