Franchising - Service Delivery System - Essay Example

For a person like me, who has a strong desire for business, but has little ideas about business concepts and execution of a business, franchising opportunities can serve as a blessing. 

As an entrepreneur, I have to concentrate only on the execution area of the business rather than running after business ideas, business plans, and training of the employees. The required product for the business and the business strategies will be readily available for me if I opt for franchising.  “Business format franchisees typically perform services, but may sell and install a product in conjunction with such service (e.g., fast food restaurants, automotive aftermarket product replacement services.” For example, suppose I opt for the franchising business of a service delivery system (SDS) of the fast-food chain Kentucky Fried Chicken (KFC).

The KFC company will take responsibility for providing me the product (Chicken and other associated items), the training of my staff (like how to approach and behave with the customers, what strategies must be taken for attracting more customers, precautions required for keeping the products clean and fresh, hygienic conditions requirements, etc), sales promotion strategies, and all the other activities required for the successful execution of the business. I have to concentrate fully on the implementation part of the business like, how well the instructions obtained from the franchisee are being executed in my firm.    

Customer demands may be different at different locations and hence the franchisor must make custom-made SDS for each location. For example, a franchisor who works on fast food services must recognize the needs of the customers in each location since the eating habits of people can be different based on region, religion and culture. The eating habits of Muslim people may be different from that of Christian and Jews people. As a franchisor, I have to consider all such factors to fine-tune the operations of my firm to conduct the franchise business successfully. For example, if I operate the KFC outlets in India as a franchisee business, I need to customize the business operations to suit the Indian conditions.

Conclusion

Franchising is a blessing for entrepreneurs who lack business ideas. They can depend on franchisees for proper business ideas, training and execution of the business. The franchisor needs to concentrate only on the execution part of the business while all the other things related to the business will be controlled by the franchisee.