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  • Burger King decided to enter the Australian market 1971The company faced legal problems with the trademark rights to the name Burger KingBK decided to choose a name that was from one of their preexisting BKC and Pillsbury Brands—Hungry Jacks was chosen
  • Jack Cowin was the primary franchisee for BK in AustraliaHe owned over 130 Hungry Jacks outlets
  • They did not acquire the rights to the name when they entered the marketBKC did not take an active role in the management of HJPL’s development until the 90’s—20 years after the brand had entered the marketBKC did not enforce its rights under the 1990 settlement agreementJack Cowin was unsupervised from 1990-1992, which made him feel like BKC did not care about the Australian marketBKC did not utilize having a great businessman like Jack Cowin on their team
  • Franchise ManagementBurger KingAllows franchisees to acquire a minimum of 5 restaurantsHands-off management stylePrefer franchisees with previous experienceTraining: ranges from 73 days to 7 weeksFocus more on market penetration rather than relationship building with franchisees

441 Presentation 441 Presentation Presentation Transcript

  • Kentucky Fried Chicken
    An Example of Proper Franchise Management
    Greg Bodenlos, Daly Guillermo, Annaliese Lafayette, Eileen Ng
  • A Two Company Comparison
  • Burger King in Australia
    Decided to enter Australian market in 1971
    Faced legal problems with trademark rights
    Selected new name, “Hungry Jacks” from preexisting BKC and Pillsbury brands
  • Burger King or Hungry Jacks?
  • Hungry Jacks Emerges
    Jack Cowin becomes primary franchisee for Burger King in Australia
    Grows the franchise to own over 130 Hungry Jacks outlets
    Currently owns 50 KFC outlets in Western Australia and the Northern Territory in addition to 300 Hungry Jack's outlets throughout Australia
  • What Went Wrong
    Burger King failed to:
    Acquire the name rights when entered the market
    Take proactive role in management of HJPL’sdevelopment
    Enforce its rights under 1990 settlement agreement
    Utilize having a great businessman like Jack Cowin on their team
  • Kentucky Fried Chicken
  • Burger King Franchising
    Allows franchisees to acquire a minimum of 5 restaurants
    Hands-off management style
    Prefer franchisees with previous experience
    Training: ranges from 73 days to 7 weeks
    Focus more on market penetration rather than relationship building with franchisees
  • KFC Franchising
    Does not allow franchisees to purchase more than one store at a time
    Hands-on management style
    Look for franchisees with entrepreneurial spirit
    Training: Minimum 6 months
    Focus on building strong long term relationships with franchisees
  • Keys to Franchise Success