Dunkin Donuts, Burger King and the Franchise Question

02.16.2013

Gulpfish has been posting some jobs at Dunkin Donuts over the past few months. If you open the postings, you will see that although they are all for Dunkin Donuts, they are at various locations that are owned by different people or companies. Dunkin Donuts and many other chains, such as Burger King and Kentucky Fried Chicken are independently owned by these people/companies. This is what is called a franchise. There has been some confusion on this, so we thought we would take some time to explain just what a franchise is.

Basically, a franchise is a business where a company which is already in operation sells its rights to an existing business model and logo to a third party operator. This operator is known as a franchisee, and has the right to offer products and services under the license given. For an increasing number of entrepreneurs, running a franchise is being seen as an attractive proposition.

Many companies throughout the US are run under the franchise system, across all areas of business. One successful sector is in the business to business sector, where the convenience offered by the local presence, yet the national professionalism of a known brand, makes sound business sense. However, for potential investors, it is important to understand what is involved.

So in English, this means that a big company like Dunkin Donuts, that is worldwide, does not own every Dunkin Donuts in the world. They allow people to run and manage the restaurant for a cost. The independent owners pay a fee to the company to run the name branded restaurant. They also buy supplies and recipes from the main company. This is why you will see a job posting for Burger King, but depending on where it is located, the main company that you apply to will be different.

The American consumer has come to expect consistent quality wherever they travel and a franchised product or service delivers this. No matter where a consumer goes, they expect to receive the same degree of quality, which is why they visit a franchise in the first place. The ability to easily recognize a franchise means that there will be no surprises or disappointments-quite simply, the consumer knows the business already, whether they are in New York City, Los Angeles or any stop in between. So most companies that allow franchise have a strict set of rules that each location must follow. Even though they are owned and operated by different people, they are still using the name and image of the Corporate company and this is something that they protect fiercely.

A good thing to remember when applying for one of these positions is that, while nothing it guaranteed, when you have a big corporate company behind you, the job security MAY be a bit stronger. As with any other business, franchises require dedications and hard work from both the owner and its employees.

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