Possible response: Franchising involves opening a new branch of a business in a new location. It has some advantages. For one thing, the company provides training for all the employees and for the owner. For example, if you’re opening a pizza restaurant franchise, the company will provide training in all aspects of the business, like food preparation, taking orders, and how to operate the business. Another advantage is that it already has loyal customers. Because many customers have visited other branches, they already know what to expect. For instance, with the pizza restaurant, they might already know the pizza is good.
Transcripts
Integrated Farming Professor: Okay, so an example of this is when chickens are used to prepare a field for planting. Farmers who do this have a special kind of little house that they keep their chickens in. This little house has four walls and a roof, but it doesn’t have any floor. And it has wheels attached to it so it can easily be moved from one location to another . So, farmers move this little house to a field where something is going to be planted—say, bean plants . . . and then the chickens are placed inside the house . . . Now remember, there’s no floor in this house . And what the chickens do is, they walk around inside the house and peck at the soil and eat any weeds or wild plants that they find... And then, when the chickens are done eating the weeds in that location, the farmers move the house to the next section of the field . . . and again the chickens peck at the soil and eat the weeds . So the chickens get to eat lots of weeds, which are good for them . Now, this activity’s also good for the bean plants that’ll be growing in the field . . . because when the chickens eat the weeds, they’re improving the quality of the soil . Thanks to the chickens, when the bean plants start to grow, there won’t be any weeds there to compete with them for crucial resources like sunlight and water. Business Franchises Professor: OK, so last time we were talking about the process of starting up a business on your own, and how new business owners often encounter a lot of obstacles. But one way to get an easier start is through franchising… that’s when there’s already a well-known, established company, and you open up a new branch of that company, in a new location … your new business will be a part of the larger, established company with the same name, and it’ll be run just like the other branches of that company. Let’s discuss some advantages of franchising . Now one great advantage of franchising is that the company provides training to you and all of your employees . They teach you about all the aspects of the business, and you’re given a plan to follow for success … so you don’t have to do the training yourself, or come up with your own business plan . For example, if you’re opening a new division of a restaurant … that sells pizza, say . . . somebody from the company will come to the restaurant that you’re opening, and they’ll train you and your employees in how to prepare the pizzas, how to take food orders … plus everything about how to operate the restaurant so it will be run exactly like all the other restaurants in the company . Another advantage of franchising is the established customer base . Because your business will have the same name as the company that’s already well-known … it’ll already have a loyal customer following . So when you open a new division, people will want to come because they’ll be confident of its quality. So, again, let’s say you’re opening a new restaurant, a pizza place. The restaurant is already well-known because it has such good pizza. So when you open your own restaurant with the same name in a new location, people know your pizza’s going to be really good, too … they’ll go to your restaurant because they already trust that they’ll have a good experience there .
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