There is some argument that the individual who purchases a franchise is less an entrepreneur than the one starting a venture from scratch. If judged from the activity of “creating something of value”
Where that value did not exist before, there is scope for debate. A fast food franchise is, strictly speaking, just another retail outlet selling a thematic variation of food. There is little change in the amount of primary demand. There are only so many consumer dollars in an area for food purchases so, for the most part, a new food retailer can grow only at the expense of another in the market. Hence the element of creativity is not so evident.
The overwhelming reason for taking up a franchise, according to Eckert et al. “is to benefit from the mane recognition.” This applies to obtaining financing (since banks prefer helping a good franchise operation, which usually has a proven business plan ) to ongoing management (through corporate support and training) and to market success (the products, promotions, pricing and location are all pre-tested and proven). The bottom line is a considerable reduction in the odds of failure.