Subway Franchise Essay Example | Topics and Well Written Essays - 1000 words

Subway Franchise - Essay Example Furthermore, it provides incremental income for the franchisor through royalty payments. Another advantage of the franchise concept is that it makes possible a faster expansion program for the franchisor supported by motivated distributors in the person of the franchisees (Om Sai Ram Center for Financial Management Research, 2006). The franchisees stand to benefit too from a franchise agreement. The franchisee gets to experience entrepreneurial autonomy using a proven concept, often with extensive recognition of the brand name (Om Sai Ram Center for Financial Management Research, 2006). The franchisee also benefits from the training programs provided by the franchisor, coupled with continuing supervision of the store. Although there are advantages to owning a franchise, franchisees are faced with disadvantages too. Decision-making is quite limited since the franchisee should follow the guidelines set by the franchisor (Om Sai Ram Center for Financial Management Research, 2006). In te rms of purchasing, the franchisee is forced to purchase supplies and equipment from the franchisor even if they are more expensive compared to other sources. They cannot carry other products and they must adhere to the quality standards of the franchisor. Moreover, most franchise agreements are skewed towards the franchisor. ... The three (3) resources that helped one decide which franchise to operate are: A. â€Å"View From the Top† by Nichole L. Torres (2005). This article delves into the reasons why Subway has been consistently in the top franchise list. It talks about how Subway values their franchisees, always making sure that they grow their market share. The article also points out that the entrepreneurial spirit of Subway’s franchises is a major strength of the company. B. â€Å"Subway Hits the Spot† by Dennis Romero (2009). The article discusses the attractiveness of owning a Subway franchise. It tells about how Subway has survived the economic downturn and how this downturn has helped boost its sales. The article points out that one strength of Subway is the upward flow of ideas from its franchisees. C. â€Å"Top 100 Global Franchises Ranking† by Franchise Direct (2012). This site was helpful in helping one decide which franchise to choose. It presented a list of the top 100 global franchises. It gave information about the initial investment needed to obtain the Subway franchise. It also showed that Subway occupies the number one spot in the Top 100 Global Franchises. It presented the support services that one can expect from a Subway franchise. These three resources have influenced one from choosing the Subway franchise. They have given an overview of how the Subway company operates. The articles discuss the strengths of the company and the reasons why it has survived despite the economic slowdown. The reports have extensive information about Subway’s success formula. Choosing a Subway franchise has several advantages. Foremost among this is that Subway is one of the world’s largest restaurant chains. Subway is a very popular brand all over the world; thus, it would not be