2. Franchising is a business
model in which many different
owners share a single brand
name.
3. • The franchising business model consists
of two operating partners: the
franchisor, or parent company, and the
franchisee, the proprietor that operates one
or multiple store locations.
4. • Franchising agreementsusually require
the franchisee to pay an initial fee plus
royalties equal to a certain percentage of the
store's monthly or yearly sales.
5. Advantages
• require less initial capital
• it can expand rapidly without having to
increase its labor force and operating costs,
using much less capital.
6. Drawbacks
• Franchising stores reduces the amount of
control that the parent company has over its
products and service.
• Franchisees must pay a percentage of their
revenues to the parent company.
7. • Yum! Brands (YUM) runs over 35,000
locations of its A&W, KFC, Pizza Hut, Taco Bell.
• McDonald's (MCD) operates the world's
largest fast food chain
• Intercontinental Hotels Group
(IHG) operates hotels and resorts under the
InterContinental, Crowne Plaza, Hotel Indigo,
Holiday Inn,
8. CONCLUSION
As the wealth of consumers in emerging
markets grows, so too will their appetites
for consumer goods, Also, as of 2007,
India's franchising industry is
expected to grow 30%annually .
