benefits of the globalization of franchises

As history and our society clearly shows, the globalization of franchises is very successful. What causes these companies to profit so easily from consumers? And what benefits are there to having chain franchises all over the world? One of the main reasons why they are so profitable is that their business structure is focused around having consistent performance standards that aim to provide the customer with the service they need every time they visit any one of the company’s store or restaurant. For example, when you walk into a McDonalds, you always expect their dollar menu, trademarked McFlurries, fries and burgers, and of course the popular Happy Meals. Along with the food, you know that the service will be quick and easy so you can get your meal and go on your way. With some variations, this is basically what all fast food restaurants aim towards, because they know it is what the customer wants.
Another reason why franchises have become so popular is the simple fact that they can be found all over the world. When tourists are in an unfamiliar city, especially when the culture is different from their home town, they may feel uncomfortable with trying new foods. Luckily for them, in most major cities, it is still possible to find a fast food chain that also has restaurants back where they are from. The Subway franchise has about 32,500 restaurants, in 91 countries! McDonalds, also has about 31,000 restaurants in 118 countries! Out of 193 countries in the world, McDonalds and Subway restaurants can be found in roughly every other one. These types of trends are sought after for other franchises as well. Our society responds positively to there being so many franchise chains in the world, so the companies will continue to build them.
Opening up a franchise is becoming easier every year. Basically all you need is a business plan, money (most times a loan from the bank), and a place to put the restaurant. With the American economy not doing very well, many people are losing their jobs and finding it hard to get a new one. I believe this has lead to more franchise restaurants opening because it can be so profitable. There are tons of success stories out there of regular businessmen making a lot of money from opening up a restaurant, and other people like this idea since the main goal in our society is to make money. When opening up a franchise, the owners never have to worry about getting their name out to the public like they would if they started up their own type of restaurant. This helps incredibly with increasing business. Along with the name, the suppliers, products, training programs, and basic look of the store is already provided, which also makes the start up go much smoother. For these reasons, the globalization of these popular franchise restaurants has “exploded” very fast.















Sources:
Subway
McDonald's
Franchising and Globalization
Benefits of Owning a Franchise
picture:
McDonald's Across the World

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