“A license to sell another’s products or to use another’s name in business, or both, is a franchise” (O. Ferrell, Hirt, L. Ferrell, 2009, p. 159). Franchises offer another opportunity for entrepreneurs to enter business ownership rather than starting their own small business from the bottom up (O. Ferrell, Hirt, L. Ferrell, 2009). It is a quick way to obtain a well-known organization with a loyal following, backed by brand advertising. Basically, a franchisee gains ownership into one (or more) franchise locations and all the rights to the brand. Of course, this is not without a financial investment. “Franchisees are responsible for buying equipment, paying for training, obtaining a mortgage or lease, and paying the franchiser a portion of the sales monthly or annually” (O. Ferrell, Hirt, L. Ferrell, 2009, p. 159). …show more content…
Ferrell, Hirt, L. Ferrell, 2009, p. 169). There are several different advantages that franchise owners recognize (O. Ferrell, Hirt, L. Ferrell, 2009). One of the advantages of becoming a Sonic franchisee is one would be buying into an established brand with a national reputation. Moreover, Sonic franchise owners reap the benefits of the existing advertisements. Small business ownership is not always easy. Generally, in the beginning, making money can sometimes be a hit or miss because it takes times to secure a loyal fanbase. The Sonic brand has a built-in reputation with a loyal following, which decreases the