Small Business, Entrepreneurship and Franchising Essay

Small Business, Entrepreneurship and Franchising - Essay Example The franchise raises operations money and manages the business operations. In franchising mode of business, someone else does establishment of the business for another. The franchise shares the business expertise for a financial consideration with the franchise. Franchising can be of different types. There is one where a business is developed much earlier on especially with existing products and the manufacturer grants right to sell the products to the franchise. The other is the franchise where franchiser allows the franchisee to utilize a special recipe or process as well as the name of the franchiser. Today, the format of business type of ownership is constituted by franchising where franchisers do not only grant the right to sell products and services or its name, but also transfers totally the way of operating the business developed such as management methods, operating, training and marketing systems, as well as technical experience and expertise (Sherman, 2007). The franchise is also extensively trained by franchiser as well as offer an ongoing support. Buying a franchise may as well be a feasible and/ or viable alternative to establishing a new business.   The primary benefit associated with franchising is the minimization of risks. Establishing a new business is often very risky. New business risk failure within their first three years of operation, this is because the owners still have to experience the sustainability curve of operations. Franchising, however, minimizes these risks since it’s already established. Franchisors also provide much information to the franchisees before any investment is made in the business. This enables the franchisees to try if the business if fit for them or not.