This evening, I spoke to my class of MBA students at the University of Rochester's Simon School of business. The subject was franchising which generated much discussion. In addition to my teaching responsibilities at Simon, I am the owner of two franchised restaurant concepts. Burger King and Friendly's. Friendly's® is a regional, casual dining chain of about 500 restaurants headquartered in Wilbraham, Mass. with an emphasis on ice cream that is made at Friendly's own plant.
The class discussed at length the value of the franchise model and its many advantages.
Some of the advantages that I pointed out include: a uniform system, mass purchasing power, brand identification, a proven format and an advertising program. There are disadvantages as well including: franchise fees, royalties, advertising fees, a limit to your own ideas and others.
On balance, the better franchises are a good value in that the successful format drives sales and profitability. You often receive on going training and a defined standard of operation, leaving little to your own imagination. There are exceptions to that as well.
In the early 1990's, I was personally responsible for convincing Burger King Corporation® to introduce a vegetarian alternative. After a considerable fight, they relented. You can now find a well made veggie burger at most Burger King restaurants today and I'll take the credit for tha
t.
I often encourage many people who are thinking of beginning a business enterprise to consider one of the many franchise opportunities available. While my franchises are in the restaurant industry, there are many available in the retail and service sectors.
Research indicates that the vast majority of franchise owners are satisfied with the franchise experience. There are also many resources available for those in pursuit of franchise opportunities and, as in any business endeavor, do the research and your homework including calling franchisees in other regions of the country to ask about their experiences.
I recommed the franchise route for those interested in a business career. Women are very much underrepresented as franchise owners and many franchise organizations are eager to level the field.
Good luck in your search.
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