The thought of starting a new business, control your destiny and realize a slice of American dream via business ownership has always been an attractive prospect for millions of Americans. However, not many are quite sure where or how to start a new business because we are always afraid of taking chances and risks. In recent years, the franchise has become a common path to business ownership which one can use to venture, invest and ultimately realize success (Scarborough, 2016). In essence, acquiring a franchise refers to the process where one can purchase a license agreement for specified product or service from a business owner (franchisor) and use it start own business. It is an inexpensive root to build business since starting a new franchise, massively reduces overall costs and risks related to starting up a new business.
A new franchise opportunity for gourmet subs and salads can be a success for a plethora of reasons. For instance, gourmet subs & salads franchises have proved to attract more than just health-conscious customers. Starting a new franchise salad restaurant means the business will be serving simple fruit salad and gourmet lettuce creations. Since most customers have understood the importance of fruits and vegetables, purchasing a franchise from a popular business enterprise is critical for success. This is because the company has an already established brand and insightful market share. As a result of economies of scale of the franchisor, as a franchise, your business is well-position to grow, build and develop the potential to cater for itself. Additionally, the business has a chance to access customer, create a relationship with those customers and turn them into loyal consumers. Hence, through market positioning strategy, the new franchisee can establish its brand using the identity of the franchisor.
The restaurant industry is large and profitable providing the business with the opportunity to create financial security in the long-term. When a new business start, it faces financial struggles in its efforts to establish itself in the market. However, when the business is under franchising, the franchise is covered with financial support from the franchisor. Subsequently, the financial support provided gives the franchisee an opportunity to establish itself for long-term survival. Hence, due to the support obtained from the franchisor, the franchise has the opportunity to succeed in the restaurant industry.
Apart from the assistance acquired from the franchisor, other conceptual alterations can make the franchise more successful. For example, the business can develop a product differentiation strategy where they can serve more products apart from gourmet and salads to attract customers in all dimensions. Here, the franchise can manufacture unique products and offer unmatched services which customers find better compared to products and services offered by other market competitors (Economics, 2015). The franchise can also enrich their menus to meet the needs and expectations of the customers. This is because customer satisfaction is the key to business success and long-term survival.
Moreover, the can also decide another generic strategy referred to as cost focus strategy where they will reduce the prices of the products to stimulate demand, attract customers and attain a market share in the industry. With a large customer base which reflects huge market share, the company will have a competitive advantage over other competitors in the market (International Franchise Association, 2014). Thus, use of these conceptual alterations can play a key role in helping the franchise achieve success.
Economics, I. H. S. (2015). The franchise business economic outlook for 2015. IHS Economics, “Franchise Business Economic Outlook for.
International Franchise Association. (2014). Franchise business economic outlook.
Scarborough, N. M. (2016). Essentials of entrepreneurship and small business management. Pearson.