Question

Please address the following three questions: Describe in some detail the role of the franchisor and franchisee. What are the advantages of starting a franchise business for the franchisee? Visit the Franchise Direct website. At this site, select one franchise opportunity that looks interesting to you. Prepare a short summary that descibes the franchise business. Please include relative franchise fees, support provided, and the location of the corporate headquaters. etc. If necessary go the the company headquarter web site as well to get additional information.

Answer 1

Franchisor is the person who grants license to a company or business to the other person known an franchisee. Franchisee is a person who takes the license from the franchisor for operation of business or services. Franchisor should give his/her rights for the franchisee to use operation methods, brand name and also the support. Franchisor plays different roles according to the franchisee he/she will acts as a partner to the franchisee, as a guide to have the profits and as a autocrat. According to the situation and franchisee needs roles will be changed. At the same time franchisee will also play some roles for the growth of the franchised business. Franchisee should be responsible to protect the brand name, should adapt the process according to the franchisor operational system, remain inquisitive, franchisee should be committed to have the profits and success in the business and franchisee should act as a best trainer for the employees regarding all the important aspects of the business.

There are some advantages while franchising a business like at present we know that many of the business get failed and invested amount will not be gained back but while franchising a business will be more profited because no loss will be observed. Growth will be very fast because of the reputed name and fame. Valuation will be improved. There will be no risk at present or future. Advertisements and promotions will be lesser.

Before franchising a business I thought that I will low investment of the capital and in future according to the profits I will increase the investment. I had researched many of the websites and came across a business opportunity as gift sender according to the customer need. This is the online business where we can sit in the home and all the pictures and gifts will be displayed on the business official site. For example if customer wants to surprise her husband on the occasion of his birthday then customer will select the time and date to deliver the gift to her husband. Then our company delivery boy delivers the gift to her husband. This is the entire business which I came across and wants to franchisee from the franchisor.

To franchisee this opportunity from the franchisor initial payment is 1 lakh bucks and this head quarters was situated in metropolitan city Bangalore in India.