Discuss how franchising works, from the perspective of the franchisor (Snap Fitness) and the franchisee (your team).

Acctg 561 – week 5 lt assignment a+

Franchises are a way for the franchisor to increase their profits while also avoiding the large initial investments that can be associated with such ventures. Snap Fitness has the ability to distribute its brand across different locations by franchising. This allows Snap Fitness to grant franchisees exclusive rights to trademarks, process and other information to run snap fitness franchises. This serves as one source of revenue for the company which also collects royalties from franchisees based on performance & sales at individual stores – allowing it partake in newer markets without worrying too much about any direct risks to their bottom line as well.

From the franchisee’s point-of-view (our team), franchising offers unique advantages since it provides access to already established entities complete with proven models & resources for success which reduces some of challenges otherwise inherent in doing business independently. Snap Fitness and our team would probably agree to certain hours/training amounts. Once all preparations have been completed, our business should start seeing profits faster than if it had chosen to establish our own small business. Even though there may be some benefits to joining larger companies like Snaps Fitness by participating in their franchise program, operational limitations must still be faced when compared with what can be achieved without outside interference.

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