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Tobacco Shop Franchising - Essay Example
Pages 2 (502 words)
The first and foremost advantage of the franchising agreement is the fact that Ralph Emerson can operate as an independent businessperson but still realize the advantages of a regional or national organization which the Pipe Dreams network has already developed into…
The reason stems out of the fact that people are often more aware of the product or service offered by a franchise and prefer it to those offered by lesser-known outlets.
Another benefit of signing the franchising agreement is that the franchisor has already proved that the operations in this market conducted in this particular manner can be successful. As the Pipe Dreams has been around for eight years and has established a network of franchisees, of which it is known that they have had a high success rate in the past, one can be certain the franchisor has proved that the chosen layout and location of the tobacco shops, the developed pricing policy and assortment of the tobacco goods offered are successful.
Moreover, for Ralph Emerson to be able to run his tobacco shop effectively he needs the knowledge and feeling of the goods' peculiarities and the consumer preferences. Probably, in his previous career as a librarian he may have accumulated some knowledge about the tobacco and cigars, most probably through the hobby, but it can not be compared to the expertise of the well-known tobacconist whose ideas have proven their validity during the eight-year period. Therefore, the training and guidance in the assortment choice and the shop decoration is of high importance in this case. ...
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