Advantages of Franchising


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    <-NARRATOR:-> Listen to part of a talk in a business class.
    <-FEMALE PROFESSOR:-> OK, so last time we were talking about the process of starting up a business on your own,
    and how new business owners often encounter a lot of obstacles.
    But one way to get an easier start is through franchising...
    that's when there's already a well-known, established company,
    and you open up a new branch of that company, in a new location ...
    your new business will be a part of the larger, established company with the same name,
    and it'll be run just like the other branches of that company.
    Let's discuss some advantages of franchising.
    Now one great advantage of franchising is that the company provides training to you and all of your employees.
    They teach you about all the aspects of the business,
    and you're given a plan to follow for success ...
    so you don't have to do the training yourself, or come up with your own business plan.
    For example, if you're opening a new division of a restaurant ...
    that sells pizza, say ...
    somebody from the company will come to the restaurant that you're opening,
    and they'll train you and your employees in how to prepare the pizzas, how to take food orders ...
    plus everything about how to operate the restaurant so it will be run exactly like all the other restaurants in the company.
    Another advantage of franchising is the established customer base.
    Because your business will have the same name as the company that's already well-known ...
    it'll already have a loyal customer following.
    So when you open a new division,
    people will want to come because they'll be confident of its quality.
    So, again, let's say you're opening a new restaurant, a pizza place.
    The restaurant is already well-known because it has such good pizza.
    So when you open your own restaurant with the same name in a new location,
    people know your pizza's going to be really good, too ...
    they'll go to your restaurant because they already trust that they'll have a good experience there.


Using the professor's example of the pizza restaurant, explain two advantages of franchising.


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