Business Case Study; Using Franchising as Distribution Method for Your Products

Business Case Study; Using Franchising as Distribution Method for Your Products

Corporations need to keep growing in order to satisfy shareholders equity and quarterly profits. They need to increase sales and therefore they need to increase the rate of distribution of their products and services. Often corporate executive management teams will look at franchising as a method of propelling the company's growth.

Although franchising isn't over regulated field with a lot of trips and traps it is a good method of growing distribution outlets for your products. Most business executives would agree that there are way too many ridiculous laws on the books and franchising being as it is highly regulated does not make things easy.

With companies like Boston Market and Krispy Kreme's pushing the envelope on acceptable franchising business practices some believe this is causing Big Brother an excuse to add more laws to the franchising community. For those business executives who are willing to admit this publicly I say to you; Oh I hear you, but also what if there were no laws for franchising then the franchise buyers would be much more leary and ask a hell of a lot more questions and less people would get burned. Thus there would be a need for fewer laws not more.

Also the laws now allow many of the largest franchisors a free-pass from registration and many of those you are just buying yourself a job. Franchising formats and business models really seem to be more like leasing a business and yet they have developed parallel laws to SEC investments, it simply is a different animal entirely. Perhaps we should consider all these points in 2006 when discussing franchising as a viable option to expand your company and grow your market share.