Fundamentals of Franchising Opportinity - Essay Example

Franchising is basically an act adopted by an organization to help in the growth of a company. Franchising is basically considered an alternative business strategy to raise extra capital for growth. To avail of a franchising opportunity, it is not a requirement to incorporate, any particular individual either incorporated or not, can avail of the franchising opportunity. The franchiser is basically very much willing to give out its franchise to anyone who meets the franchiser’s requirements. Once the requirement is complete, the franchisee can avail of the franchising opportunity. the usual requirements are the payment of the initial capital sum, the sharing of the profit clause, the system and business method as imposed by the franchiser, etc. Franchising can be seen as a prospective venture for both the franchiser and the franchisee with no capital investment for the franchisee and increased profits for the franchiser by only forwarding the brand name. The only issue with franchising is that large multinational organizations offering such franchising offers are really strict when they are choosing any particular franchisee. The other issue arises for the franchiser when and particular franchisee refuses to follow the instructions of the franchiser once the franchise has been created (Barkoff et al, 2008)