Essay: What are Franchises
In any franchising agreement, the parent company gives permission to the franchisee to have his/her operations under a standardized set of rules. In essence a particular technology is used and a given trademark that is normally given in exchange for a particular fee that in normal cases is fixed and also some royalty on growth sales. Most of the franchises have put this figure at eight percent. In addition to all this requirements, a franchisee can be put under an explicit performance bond. According to the rules stipulated by the parent company, a minimum level of quality is normally required while inputs and equipment are purchased directly from an approved supplier or from the franchisor.
It is very important in organizational training to have a strong emphasis on standardization, which makes the subject not complete, if this aspect is not talked of. Standardization involves nurturing a culture that maintains homogeneity across the company’s operations and processes. This quality is an important factor in ensuring employee retention. In this case, two aspects are in focus, which includes customer satisfaction and quality. There is need for any organization to put a lot of emphasis on these two aspects if the company is to achieve the necessary and desired level of standardization of its products and services. In theory the two qualities are of utmost importance and when the company lacks it they go down before there customer’s eyes. Building brands for businesses is a company’s lifelong goal and to achieve this all resources and efforts are pulled together in a bid to achieve service standardization. One excellent example of a franchise company that has achieved this success is the McDonald franchises.