Franchising as Way to Expand the Business - Essay Sample

Introduction

Businesses usually take significant risks to ensure the firm grows effectively. Therefore, the in the long-run, the profits earned assist in determining the position of the company. Franchising is the process of growth whereby firms adopt a specific marketing concept that aligns with the success of the business. Usually, the franchiser is paid a start-up and an annual license fee to ensure that the set-up is legally recognized. Therefore, sometimes franchising the industry is beneficial because a cost-effective system is adapted for the maximization of profits. According to Barringer (2015), management is also simple because the franchise takes care of their daily operations and keeps proper records of their own business. Note that there is no magic in franchising because the franchisor receives money for some time for the partners to dwell in their goods and services for an agreed period. Paul Green began the school at his home where students would attend, and he would teach them well. Therefore, he realized that students performed well in groups other than the individual lessons (Barringer & Ireland, 2016). Since the school was established, growth has been experienced throughout the years. The Sterling Partners have since maintained the vision of the school and expanded the school through franchising. The concert attended by the students plays a significant role since income is gained that sustains the school. Moreover, the fee paid by the students has attracted more investors who also learn from the benefits of the school. Therefore, the discussion involves analyzing how franchising is adequate to the School of Rock and the interests aligned with the businesses.

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Penetration to the local markets is guaranteed because most franchisees come from the area and have assessed that the company can generate significant returns. Therefore, in this case, the documentaries about the school of rock acted as an opener since the investors saw potential. With the continual advancement in technology, children can easily lure the parents into enrolling them in the music schools especially if they have passion in the specific field. Therefore, entrepreneurs will find a segment that ensures the business penetrates the market. Thus, the location of the school acts as a determinant of the price that would be charged. Therefore, the price is lower in remote areas as compared to schools in towns (Russell, 2016). Thus, the decisions made for the firm have experience faster growth, and more partners are interested in venting their money to ensure that the profits are in the favor. The training provided is essential because the franchise gets oriented to the operations; thus, finds the section that interests them.

Moreover, collaborating with the IT guys ensures that the system is well maintained. Tracking transactions and the schedule of the classes is essential since it provides evidence that the students are taught and obtain knowledge effectively. Note that the provisions in the Agreement guide the franchise as they understand their boundaries within the organization (Cliquet &Perrigot, 2014). A protocol is, however, followed before new ideas are implemented so that other persons may not be affected by the changes in the organization.

Franchising is complicated; thus, individuals should ensure that they have conducted enough research before entrusting the provisions. The losses are not limited because every member feels the impact. Moreover, the compensation plan depends on the agreement. In the case of the School of Rock, many people have invested in the business, and more outlets are opened in the different states resulting in children having an opportunity to learn the skills of music. The franchisees need to engage in the tasks to ensure that they can easily supervise and get proper training that would result in development. The entrepreneurs should seek for the book of accounts to asses because most firms have been fraudulent since the financial statements are generally prepared to impress the clients. Individuals should be patient and engage other people in the same business to determine if they are legit (Combs, Ketchen & Short, 2013). The regulations in franchising are vast because they ensure each party is well protected so that the funds are equally gained for the expansion of the business. Individuals should remain organized so that activities planned may result to attain the objectives set to occur in productivity. Therefore, School of Rock has experienced growth resulting in sustenance in the market.

In most cases, when services and products of the company have become known to the market, it gets easy for the growth to be encountered because the circle of customers grows significantly resulting to the implementation of other ideas that would expand the firm. Note that financial capability can make a firm engage in activities that are believed to generate income that would sustain the business. The growth of firms can be supported by expanding the outlets to other regions or seeking loans to help the company. Customers need proper care so that they are retained through the whole service. School of rock has various options that accommodate all students.

Moreover, they are treated by the services they have requested. Franchising is the best method of enhancing growth because the money comes from the franchisees. Furthermore, an agreement is involved so that any breach is compensated so that the aggrieved party does not feel neglected. Failure would be the experience of the customers is not given proper attention, and the business model is altered affecting the operations of the company. The school of rock has played a significant role in the market since it has maintained itself well in the market.

Moreover, the customers have been served well resulting in the generation of high amounts of profits. Therefore, note that the business should operate following the demand from the market leading in profits being generated appropriately. School of Rock had established a good rapport that easily attracted customers; hence, expansion through the franchise was simple (Jarvis &Tracey, 2017). The school's mission and vision were maintained after Green had sold the school resulting in managers supporting a proper direction for driving the operations of the school. The returns earned are worth the amounts invested because the business is expected to grow effectively with minimal chances of gaining investments.

Information technology segment plays a vital role because they understand the system used in management and record keeping; therefore, they guide the effective ways to upgrade the software. Note that the business is thriving because as one registers for the location to manage they are required to be present full time. Appointing other people may be difficult because if they mess, the impact might not be felt as much as the owner of the business does. The new programs are significant because every member will have a segment in which to practice their talents. Young children also have an opportunity to acquire the skills perfection is maintained when performing. Team building and career development ensure that students gain skills to manage themselves in the process of singing and playing the instruments. However, this shows that the firm is ambitious and the management represents a significant in making follow-ups so that irregularities are tackled in due time. Any activity that violates the provisions would result in the some members getting demoted because other partners may lose much money from a slight mistake (.Dant, Grunhagen & Windsperger, 2016). The best point to franchise business involves when the customers are satisfied that the goods and service serve the purpose for which they are bought. Therefore, investors should be sure that the company will be productive. The market research should be conducted to ensure that the business opportunity gets expanded significantly. Frequent meetings ensure that the reports are evaluated and corrected before more harm is caused.

Franchising is the best way to expand the business because the amount comes from the franchise. Therefore, they are required to meet the regulations so that the business gains. Note that some companies may present unnecessary data that misleads the public into engaging in the operations yet the expected returns would not be gained. However, thriving in the market would be possible if consumers are aware of the good and services. Franchising is prevalent in the businesses that have a wide range of customers. School of Rock has made it to the market due to the persistence in the services. Moreover, all partners are held accountable throughout the operations to avoid blame games.

References

Barringer, B. R. (2015). Entrepreneurship: Successfully launching new ventures. Pearson Education India.

Barringer, B.R., & Ireland, R.D. (2016). Entrepreneurship: Successfully launching new ventures (5th ed.). Don Mills, Canada: Pearson Canada Inc.

Russell, C. L. (2016). Service-Disabled Veteran Small Business Owners' Success Strategies.

Cliquet, G. &Perrigot, R., (2014). The Importance of Time Management for the Performance of Franchising Networks. Economics and Management of Franchising Networks, 211-222.

Matalamaki, M. (2018). Growth trajectories of the established companies: effectuation and causation in focus.

Combs, J. Ketchen Jr, D. J., &Short, J. C., (2013). Is franchising entrepreneurship? Yes, no, and maybe so. Entrepreneurship Theory and Practice, 35(3), 583-593.

Jarvis, O. &Tracey, P., (2017). Toward a theory of social venture franchising. Entrepreneurship theory and practice, 31(5), 667-685.

Dant, R. P., Grunhagen, M., & Windsperger, J. (2016). Franchising research frontiers for the twenty-first century. Journal of Retailing, 87(3), 253-268.