Factors that an entrepreneur would need to take into account if they were considering becoming a franchise of a fast-food company.

International Foundation Year
2015/16

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Discuss the factors that an entrepreneur would need to take into account if they were considering becoming a franchisee of a fast-food company.

    "The franchise is an exchange of trade, economic and human relations noticed in a contract. The franchisor and franchisee find in the contract a common interest while retaining their independence." According to Michel Khan

    A Franchise is an agreement established between a franchisor and a franchisee by which the first one puts at the disposal of the second a name and a commercial method.
The franchise can apply to the department of services, production (production and marketing of goods bearing the mark of the franchisor after the agreement of a license by a company holding a patent) or distribution. This last case can be illustrated by the case of fast food chains

    Set up its business is the dream of many people. Each year, many entrepreneurs dash in becoming franchisees. This marketing strategy, which is to market products/services as well as to benefit from the brand image of a franchisor with an entrance fee and commissions, allows to develop a company benefiting from the support of a network and a strong brand quickly. However, engage in a franchise is not so simple, the steps are many and require a real investment, both in time and money.

    In the field of fast food, the franchisee must first choose the brand under which he wants to settle. Many criteria must enter this choice into account: the potential of the network and the business sector, the quality of the products and services offered and the constraints imposed by the franchisor, which may be more or less flexible.

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