Does franchisee need freedom
The franchisor has a responsibility of creating the name of the company, products, and finances the franchise in order to carry in an efficient and effective manner that will ensure profits are maximized as well as taking competitive advantage in the market. The franchise business model is important especially for young entrepreneurs because no business experience or capital is needed. The purpose of the research is to determine whether franchising giving franchisee freedom and authority to behave like an entrepreneur leads to more significant to the business. Table of Contents ABSTRACT 1 1. INTRODUCTION 3 2. The franchise brings in business-oriented ideas that can steer the franchise in the right direction in attaining market growth and competitive advantage. The franchise ensures motivated management who are working with innovative modern technology in order to produce goods and services of high quality in the market.
The franchisor provides necessary training needed by the franchise in order to ensure the business is run effectively and efficiently to avoid collapse. The business world has become competitive due to dynamics in technology. Majority of the businesses use technology in production, management of customers, suppliers, and employees of the franchise. It is a clear indication that the franchisee needs much freedom from the franchisor and other key players in the deal. The freedom given to the franchisee to behave entrepreneurially enables him to have desire and curiosity to drive his personal motivation of the franchise in order to ensure that it succeeds in the market. The curiosity and desire to move the franchise to the next level franchisee needs to develop strategies with the help of the management independently without inference from the franchisor.
Freedom enhances the decision-making process. Interference contributes to the downfall of a franchise and entrepreneurs ambitions to prosper and position the company in the market. The research will seek to answer whether there are benefits arising from the relationship between franchisor and franchisee. The research will use sampling procedures in order to obtain accurate and dated data that is free from bias. The research interviewed 20 students both male and female from Harvard University in the United States. The results of the interview are tabled for easy analysis and interpretation. The research design is both application and explanatory in nature. Quite good numbers were for the opinion that they should have freedom doing business like any other entrepreneur with 18 college students supporting the idea representing 90%.
Only two college students opposed the idea representing 10% citing that franchisee does not need to have skills or capital that is not the case for the entrepreneurs. Entrepreneurs’ source factors of production, start business from scratch, and guide it to success levels of realizing profits. Does franchisee behaving entrepreneurially benefit the entire system? Number Percentage (%) Yes 19 95% No 1 5% The results indicate that 19 college students representing 95% think franchisee behaving entrepreneurially benefits the entire system. The franchise is likely to generate revenues, open up new markets and competitive advantage in the global market. Kirby. Toward a model of franchisee entrepreneurship. International Small Business Journal 30. Dhingra, Pawan, and Jennifer Parker. Franchising ethnic entrepreneurship: Immigrant business owners and an alternative economic model.
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