The Logistics of a Distribution System as Applied In a Restaurant Franchise
A franchise refers to a lawful contract that convinces the owner to grant rights to another person to be part of a business under the agreed conditions. Based on this agreement, the distribution system connects the two parties. This enable the franchise to retail goods and services. Franchises began to develop massively in United States from 1950s.
Factors that contributed to this immense growth included the world war outcome and construction of interstate highways. A good example that depicts these form of franchise are McDonalds and Kentucky Fried Chicken. The major aspect that determines the success of a franchise is distribution. However, the existing options that apply to disruption cases that involve supply tend to overturn the distribution contracts.
As a result, this contributes to damages that force the franchise to produce its commodities under a system that is controlled. Furthermore, the effect of recinding the agreement is that it disconnects the franchise from the misery of bankruptcy. On the contrary, it links the franchise to a main distributor. This facilitates fresh bidding from other distributers who are interested.
Taking legal action is necessary because it assists the franchise to recover what they had lost. This happens when the distributer is demanded to auction his assets or rather when they place him on receivership. However, in other cases, suing may not be the best option because it always favors parties that are bankrupt (Farnham 258).
In addition, when the franchisee is permitted to deliver his products, this reduces the distribution inefficiencies and expenses. It may pay way for a good moment to conduct the business, but it risks compromise and quality of products. Business models increases value of products but delay in recognizing its clients. Conversely, Consumer models are fast in identifying clients but decrease value of goods.
Khan, Mahmood A; Restaurant Franchising: Concepts, Regulations And Practices, Third (Den) (Kenneth D. Lawrence) Edition, 2009. Print
Farnham, Henry P; The Law of Waters And Water Rights: International, National, State, 2008. Print.
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