Marketing Plan - Firehouse Subs
1. Franchisees gain numerous advantage when they purchase a franchise. First, while a franchisee may be opening a new store, it is part of an already established business and system. This means a franchisee has access to turnkey operations, allowing an increased speed to establishing and growing the business. Franchisees also get support for management and training activities, as well as financial assistance. Going hand in hand with this, a franchise already has an established brand name, quality of goods and service which have been standardized across the franchisor’s larger company, and national advertising programs from franchisors. Franchises also have large-volume, centralized buying power. A franchise has proven products, and successful business format. Finally, site selection and territorial protection is offered for franchises. All of these advantages increase the chance for a new business in a franchise to be successful. While there are many advantages to a franchise, there are disadvantages as well. First and foremost, in order to own a franchise and take advantage of all the benefits of owning a franchise, there are fees and royalties which are ongoing for advertising, use of the franchise name, products and services, and for use of the business system. A franchisee must also adhere strictly to regulations and standards imposed by franchisors. Franchisors also require the purchase of supplies and equipment from approved suppliers. Franchisors can also restrict what products can be offered in a store, which limits the product line as a whole. This results in an overall limit of freedom which entrepreneurs who start their own business do not have to deal with. Finally, and possibly most relevant from a business standpoint is market saturation. Franchisees have grown tremendously fast in recent years, resulting in an overwhelming number of franchises in the market place.
2. Option 1: Continue their current marketing efforts
Advantages:
* Will not
2. Option 1: Continue their current marketing efforts
Advantages:
* Will not