Secara sederhana, franchise dapat didefinisikan sebagai metode menstandarkan seluruh sistem kerja bisnis yang anda jalankan dan telah terbukti kualitasnya untuk kemudian bisa diduplikasi dan dijalankan oleh orang lain(pembeli franchise). Pembeli franchise-pun dapat menggunakan brand dan sistem kerja tadi berdasarkan kesepakatan yang telah disetujui bersama.
2. Mencari Idea Business
— Mengembangkan hobi, minat , kompetensi dan
memperluas pemahaman tentang
kesempatan/peluang business
— Melipat gandakan business yang sudah jalan dengan
menyebarkan gagasan dan memperluas share
— Menginvestasikan ;gagasan/patent” sebagai modal
— Menemukan model Business yang siap dijalankan
3. Early Franchise Entrants
— 1898 - Automobile Manufacturers
— Division of responsibilities:
- manufacturers - design & production
- dealers: sales & service
4. Coca Cola Company
— 1886 : coca-cola invented
— 1899 : Thomas & Whitehead 600-word contract
promised to open a bottling plant
• 1901 : no capital to open the bottling plant …?
• 1919 : 1,000 franchised Coca-Cola bottlers
5. Gas Stations
— 1930’s - Depression Era Franchising
— First example of Conversion Franchising
— Taxation of all company-owned gas stations
— Why pay that? …. let’s FRANCHISE
— Also quicker local response to price changes
6. Fast Food Fifties
— Harlin Sanders - gas station
— closed pumps: 142 seat restaurant
— 1950’s: turned down $164,000
— 1960 (200) 1980 (6,000)
— 2007: 13,433 KFC’s world-wide
• San Bernardino, CA 1940
• Dick & Mac McDonald
• inspired by Henry Ford’s assembly
line
• Ray Kroc - multi-mixer salesman
• world’s largest chain of FF-rest’s
• over 31,000 locations world-wide
9. Principles of Franchising
— 1,550 company-owned restaurants
— Revenues $1.69 billion
— Expenses $1.42 billion
— Pre-Tax Profit $270 million (16%)
— 4,550 franchised restaurants
— Revenues $486 million (royalties)
— Expenses $ 78 million
— Pre-Tax Profit $408 million (84%)
10. Types of Franchises
— Manufacturer-Retailer (auto & gas)
= 70% of franchise sales
— Manufacturer-Wholesaler (coca-cola)
= 3% of franchise sales
— Business Format (McDonalds, Hilton)
= 27% of franchise sales
— Franchising in the Economy (1986)
last year Dept. of Commerce collected data
how has franchising evolved since then?
11. Franchisor Strategies
— Advantages Of The Franchise Model
OPM expansion
franchise & royalty Fees
leverage IP assets
efficient market penetration
— Disadvantages Of The Franchise Model
does not solve existing problems
initial development costs
entering a new business: new expertise
profile ‘problems”
13. Buying a Franchise
The franchisee is the buyer of
a franchise.
The franchisor is the seller of
a franchise.
franchisee the buyer
of a franchise who is
given the right to the
franchisor’s product,
process, or service
franchisor the seller of
a franchise who is giving
the buyer planning and
management expertise
14. About franchise
A franchise is
formal
permission, like a
license, to use
the name and
products of a
company.
A franchise business
is a method a
company uses to
distribute its products
or services through
retail outlets owned
by independent, third
party operators
Franchising is
based on mutual
trust between the
franchisor and
franchisee
What is a franchise
business?
What is franchising?What is franchise?
15. About franchise
The company
that grants the
independent
operator the right
to distribute its
trademarks,
products, or
techniques
The independent,
third party business
person distributing the
franchiser's products
or services through
retail or service
outlets
Product/trade
name franchising
Business format
franchising
Franchisee Two formsFranchiser
16. What is franchising?
“A franchise operation is a contractual relationship between
the franchisor and franchisee in which the franchisor offers
or is obliged to maintain a continuing interest in the
business of the franchisee in such areas as know-how and
training; wherein the franchisee operates under a common
trade name, format and/or procedure owned or controlled
by the franchisor, and in which the franchisee has or will
make a substantial capital investment in his business from
his own resources.”
- Definition by International Franchise Association
17. What is franchising?
— Legal and commercial arrangement concerning the
successful business of a franchisor
— Use of franchisor’s trade name, format, system
and/or procedure under licence
— Means to raise capital and expand quickly
— Assistance to franchisee
— Marketing, management, advertising, store design,
standards specifications
— Payment by franchisee by way of royalty, licensee fee
or other means
18. What is franchising?
Franchising is more than distributorship
— Extends to an entire operation or method of business
— Greater assistance, control and longer duration
— Distributor merely re-sells products to retailers or
customers
19. TYPES OF FRANCHISE
— 3 main types of franchise:
— Product distribution franchise;
— Business format franchise; and
— Management franchise.
20. Produces the syrup
concentrate
Sells the syrup
concentrate
FRANCHISEE Produces the final
drink
Retail Stores
Restaurants &
F&B Outlets
Vending
Machine
Operators
PRODUCT DISTRIBUTION
FRANCHISES
21. BUSINESS FORMAT
FRANCHISING
— In a business format franchise, the integration of
the business is more complete.
— The franchisee not only distributes the
franchisor’s products and services under the
franchisor’s trade mark, but also implements the
franchisor’s format and procedure of conducting
the business.
22. A contractual business agreement
between a manufacturer or another
supplier and a dealer to produce and
market the supplier’s good or service.
23. What is Franchise?
Franchise is a license granted by a company (the
franchisor) to an individual or firm (the franchisee)
to operate a retail, food, or drug outlet where the
franchisee agrees to use the franchisor's name;
products; services; promotions; selling,
distribution, and display methods; and other
company support.
24. How Franchising Work
— An individual who purchases and runs a franchise is called
a "franchisee”.
— The franchisee purchases a franchise from the "franchisor”.
— The franchisee must follow certain rules and guidelines
already established by the franchisor, and in most cases
the franchisee must pay an ongoing franchise royalty fee,
as well as an up-front, one-time franchise fee to the
franchisor.
25. “Although franchising was conceived and born in the west its future
undoubtedly lies in the emerging economies of Asia.
The growth and development of franchising in the most populated and,
in a franchising sense, the most undeveloped, region of the world is
already well advanced.
The expansion of established international systems has alerted
governments, the business community and consumers within the
disparate countries within the region to the unique attributes of the
business format franchise model and to its economic and commercial
benefits.”*
* Prof Andrew Terry, University of New South Wales and Special Counsel, Deacons, LAWASIA Conference, 2008
26. A conceptual overview of franchising in Asia
— Asia has 60% of the world’s population, and 7 of the 10 most populous
countries.
— The biggest trends are the expansion of the economic impact of
franchising throughout the Asian region, and the continued preference
of Government for regulatory models rather than relying on market
forces or self-regulation.
— The immaturity of business regulation and the administrative difficulty
of transacting are features of many Asian countries. There is often a
divergence between franchising law and franchising practice. It is not
just a question of legal compliance. It is often important to win the
hearts and minds of regulators as to the viability of the business
concept and perhaps the commitment of the foreign entity to the
market.
27. Population Franchise Systems Date & Source
Australia 20m 960 2006 FCA
China 1.3bn 2800 2007 CCFA
Hong Kong 7m 100 2007
India 1bn 850 2008 FAI
Indonesia 220m 185 2004 Austrade
Japan 130m 1194 2006
Malaysia 24m 318 (registered) 2007
New Zealand 4m 390 2007 FANZ
Philippines 89m 1000 2007
Singapore 4.5m 420 2007 WFC
South Korea 48m 2211 2005 Austrade
Taiwan 22m 1124 (chains) 2006 CCFA
Thailand 65m 150 2007 WFC
Vietnam 80m 70 2007 VNA
28. Franchise’s major growth
In Indonesia
Franchise sector in Travel
Franchise trend
in the Hotel business
The
Trends
29. WHY DON’T YOU FRANCHISE?
Lower Failure Rate
Help with Start Up and Beyond
Buying Power
Star Power
Profits
Advantages
30. WHY DON’T YOU FRANCHISE?
Their Way or The Highway
Ongoing Costs
Ongoing Support
Cost
Shark-Infested Waters
Disadvantages
31. Franchise Agreement
Document
Cornerstone
document of the
franchisee--
franchiser
relationship
Provisions
covering
The obligations
of the franchiser
and franchisee
regarding
operating the
business
Legal advice
Get a
specimen
contract for a
solicitor to
review.
What's in a franchise
agreement?
Tips on franchise
agreements
What's a franchise
agreement?
32. Areas covered by a typical
agreement
Fees
Term
Territory
Restrictions
Support
Exit
A typical
agreement
33. Why to ensure your Franchise?
do
certain
things to
ensure
that
success
Franchises
are unique
34. maintain a good relationship
with your franchisor
Protected territory is granted
find the best business
location
take care of financial
matters
manage your resources
And how to ensure ?
develop a marketing plan
35. FRANCHISEES IN SINGAPORE
— Generally young and well educated
— 62% below 40 years old
— 57% had post-secondary education
— 32% own their own outlets
— 46% occupy the outlets as tenants
36.
37. PERTIMBANGKAN
— Penduduk bertambah
— Peningkatan daya beli
— Fokus pada orang muda
— Mobilitas makin tinggui
— Peluang usaha tidak berulang
— Keahlian management dan business sense
— Pilih bisnis model yang tepat