#32

Comparison Essay:

Franchising

2/26/11

          

             The reading passage contends how franchising is beneficial for new owners. On the other hand, the speaker talks about the disadvantages of franchising.

             The article makes three advantages of franchising. They are reliable products, saves money on advertising, and business security. Because merchandise have tried and tested their products, owners are assured by the high quality and popularity. For instance, McDonald’s owners know what to sell and invest in and public already like the shop and the products by its name, McDonald’s. The reading also says about how new owners save money on advertising. They don’t have to spend time nor resources for selling their products. There already is national marketing campaigns and solid trading name. For example, KFC owners don’t worry about promoting unknown products. They don’t have to flyer neighborhoods, vie out examples, or pay expensive advertisements! The last benefit that the passage gives out is business security. There is low rate of failure because franchisor helps the owner. On top of that, owners continually get assistance and training program.

             However the speaker talks about how franchise is actually disadvantageous. She brings up three points as well. They are no control, frustration, and unprofitable enterprise. According to some surveys, she says, many owners do not have control. They don’t have freedom for selling products. They are forced. They also do not have control in their work, even though they are boss. Franchisors decide what products to be sold and services, which directly affects marketing and income of the franchise. Second disadvantage is the frustration the owners get. She talks about how 6% of income is used for advertising the main store, which is basically just promoting themselves. Despite these investments, the main stores do not payback. This disagrees to national marketing schemes. Owners have better ideas for local promotions. However, they get frustrated by the control of franchisors. The last draw back that the speaker makes is the whole enterprise is unprofitable after all. Owners have to pay for advertisements and the use of the system. This costs more than what the franchisors return. Because many owners spend less than gaining, some say they will start individual business. These points go against what the passage says about how franchising is reliable on product, money, and security.

             As a conclusion, franchising is not really a smart choice for a new boss-wanna-be.