Advantages And Disadvantages Of Fast Food Franchise

Introduction
A fast food restaurant is a type of inexpensive restaurant whose food is prepared in a standardized manner and dispensed quickly in quantity. (Dictionary.com, n.d.) According to StatsSA, ‘in its highest month last year, April income in the fast-food and takeaway industry surged by 13.3%, more than double the rate of inflation.’ (Holmes, 2016) How can this industry be thriving in this current economic market?
In this report the researcher will look into the Wimpy Brand and what makes it so special from various viewpoints: the owner, the staff and the patrons.
The researcher has chosen Wimpy because it is a local brand and one that the researcher is familiar with. It is a delight to have Wimpy breakfast on the way down to our annual costal holiday. Literature review
Franchise
In South Africa there are over 550 franchised brands and close to 30

The advantages are that you own a business and are supported by a bigger business network (Queensland Government, 2016). Franchisors provide training on what you need to know to operate their business model, so as an owner you do not necessarily need experience. There is evidence that a franchise has a higher rate of success than a start-up business. Securing finance for a franchise is easier than for a start-up. A franchise has an established reputation, image, proven management and work practices, access to advertising an ongoing support. There are disadvantages to franchise. There is a formal agreement between franchisee and franchisor. The franchise dictates how the business should be run and limits creative management. There are restrictions on location of establishing the franchise, limited products that are sold and restrictions on suppliers. The franchise’s reputation relies on every franchise. Profits are shared with the franchisor. The franchisor has the option to renew or not to renew the franchise agreement at the end of the