Description
https://www.finder.com/top-global-franchise-rankings
Franchising began in the United States in the United States as the brainchild of Ray Kroc, a ice cream shake maker salesman. Franchising has become a global phenomenon that as helped businesses grow all around the world.
Look at the site listed above. Note the home countries of the top global franchises. Pick one and share with your classmates what stands out about that franchise, the capital investment and business criteria needed to become involved with that company.
Why did you choose the particular franchise for discussion? Would you consider franchise ownership in your future career?
-Please Write a reply on this two peers is posts:
1- Dunkin Donuts is the number 12 franchise. It is considered a fast food franchise and is from the United States. I find this super interesting because to start with their focus was on donuts. They then decided to add a focus on coffee. This focus on coffee revolutionized the company. The minimum required franchise fee is $40,000. The maximum is $90,000. The liquid capital required is $125,000. The net worth required is $250,000. The total investment can end up costing between $217,300 and $1,637,700. This sounded like a lot of money to me.
I chose Dunkin Donuts for this discussion due to the franchise cost being higher than the average. I thought that this was very interesting and they do have a good competitive advantage so it allows them to charge more. I would be interested in looking into the average profits that a store makes. I know that their products are very low cost and are still much cheaper than their competitors. I just wonder how long it would take to pay off this initial investment and how long it will be unit you start seeing a profit.
I personally would not choose franchise ownership in my future. I know that many franchises are very regulated and if I were to open a business I would want to feel as if I’m in control. I would want the freedom to come up with new ideas and change things about the business.
2- The franchise I chose was Chick Fil-A which was ranked #14. I chose this franchise because it is one of my favorite fast food restaurants. Plus, there is one conveninetly located in Waterloo and in Cedar Rapids which isn’t too far from my hometown. Chick Fil-A requires a minimum fee of $10,000 and in all honesty that is relatively cheap. I also found that Chick Fil-A covers most start up costs since Chick Fil-A wants ownership of the franchise. Despite the $10,000 minimum and start up costs and expensives covered, In return, Chick Fil-A gets 15% of sales and 50% of profit. I also found there is no minimum requirement for net worth. Finally, another intresting aspect was that it is harder to become a Chick Fil-A operator than it is to get into Stanford with a 0.13% acceptance rate.
I chose this franchise because of its one of my favorite fast food restaurants. However, these numbers were eye opening especially how Chick Fil-A covers start up costs and expenses but Chick Fil-A still owns the franchise which is why there is the term “operator”. I personally wouldn’t open a franchise because that is a lot to manage and would rather be an employee without all the pressure on me.
