Franchising's Role in Canada's Economy: A Detailed Look at Pizza Pizza

This essay explores the influence of entrepreneurship and franchising on the Canadian economy, with a specific focus on Pizza Pizza as a case study. It highlights the unequal distribution of wealth in Canada and how entrepreneurship, particularly franchising, can play a crucial role in shaping a more equitable economy. The essay discusses the advantages of franchising, such as cost-effective expansion, income from royalties, and scalability, as well as the disadvantages, including capital investment risks and regulatory compliance. Ultimately, it concludes that franchising can be a beneficial option for economic growth in Canada, exemplified by Pizza Pizza's success.

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Introduction
The purpose of the following essay is to shed the light on the influence of the
entrepreneurs on the growth of the Canadian economy and the subsequent advantages and
disadvantages of franchising in the case of Canada. The franchise that has been chosen for this
organization is Pizza Pizza that is a food franchise and has its roots in Canada itself. The proper
advantages and disadvantages of the franchise on the economy will be discussed in this paper.
Influence of the franchises in Canadian economy
The Canadian economy has always been accused of the unequal distribution of wealth on
the national basis. There is a huge gap in the income and wealth distribution in the different areas
of the country (Galindo & Méndez-Picazo, 2013). This is why entrepreneurship and franchising
has come to play a huge role in the shaping of the economy in the country in an equal manner.
The impact of entrepreneurship has been very important because it can increase the economic
growth in the areas in the country. As the wealth distribution has been very much evident in
Canada and this is the very reason that Canada ranks second just behind the activities in
entrepreneurship (Galindo & Méndez-Picazo, 2013).
The chosen franchise for this paper is Pizza Pizza that was founded in the year 1967
(Pizzapizza.ca, 2018). This franchise is considered to be the largest pizza chain in Canada over
3500 franchises that operates throughout the county. It is also very important discuss the various
advantages and disadvantages of the franchise in the best manners. The franchise has always
focused on the quality and innovation within the industry so it can deliver the pizzas on time
with the best quality (Pizzapizza.ca, 2018). Some of the important areas they are focusing to get
involved in are the environmental stewardship and involving with the community indeed.

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Hopefully, these efforts of the Pizza Pizza will definitely cater to the economic growth of the
country in the best ways (Webber, 2012).
Advantages of the franchising
There are certain benefits of the franchising in different countries and especially in
Canada. These advantages will be discussed in the following section indeed.
The expansion of the franchising companies can be done in the most cost-effective ways.
Franchisees always go on to handle the research and funding work in the best ways for the
organization. This signifies that the organizations do not have to spend their capital on these
sections. They do not have to make requests to the banks or the investors in order to ensure the
business growth (Naudé, 2014).
The franchisors will definitely go on to receive the extra income from the royalties of the
organizations as per the agreement of the franchisees. The royalties are generally the monthly
fees that come up with a certain percentage of the gross sales (Huarng & Yu, 2014).
The scalability is always there for the franchises. The franchisors can opt to customize
their franchise agreements in order to concentrate on the national economic growth on a large
scale (Naudé, 2014).
The franchises will have to focus on the already attempted marketing strategies and
locations. This will surely be helpful for them to get rid of the hazards of starting a business in
the independent manner. The national advertising funds can be raised in this way as well.

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Disadvantages of franchising
The disadvantages of the franchising will have to be discussed in the following section.
This will be very important to note the shortcomings as well.
The capital investment options in the franchising are a very important matter in this
scenario. The investments in the time and money are very hazardous indeed. Some of the major
disadvantages are to set up the flagship stores, marketing plans, preparation of the legal
documents and recruiting the franchises (Cavusgil, Knight & Riesenberger, 2013).
The regulation of the franchises goes through the state and federal laws in the best ways.
This is why the Franchise Disclosure Document (FDD) is very much needed as well (Cavusgil,
Knight & Riesenberger, 2013).
The franchisors might agree to abide by certain legal issues, training and the instructions
of the parent companies as well. Some negotiations might be necessary in this case as well. The
franchisors might not be able to make disagreements as well (Webber, 2012).
Conclusion
After the discussion in the previous section, it can be concluded that it is a very good
option to become the franchisors in the beginning point. The franchisors will have to take some
risks at the starting point but it will be very important for the economic growth of Canada in the
best ways. Pizza Pizza can be stated as a good example for this as well.

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References
Cavusgil, S. T., Knight, G. A., & Riesenberger, J. R. (2013). A framework for international
business. New Jersey: Pearson.
Galindo, M. Á., & Méndez-Picazo, M. T. (2013). Innovation, entrepreneurship and economic
growth. Management Decision, 51(3), 501-514.
Huarng, K. H., & Yu, T. H. K. (2014). Analysis of franchisors' expansion strategies and
competition. The Service Industries Journal, 34(9-10), 856-866.
Naudé, W. (2014). Entrepreneurship and economic development. International Development.
Ideas, Experiences and Prospects.
Pizzapizza.ca. (2018). Retrieved from http://www.pizzapizza.ca/
Webber, R. (2012). An introduction to franchising. Macmillan International Higher Education.