Exploration Of Franchising Essay

Exploration of Franchising Essay
Exploration of Franchising
Definition Franchising offers an excellent opportunity for you to be in business for yourself. When
you hear the word " Franchise" you probably think of fast food restaurants such as Burger King,
McDonald's or Subway. But the truth is Franchising is so much wider than that.
In simplistic terms, franchising is where a successful business format is replicated. This will involve
the setting down into an operations manual all the systems and procedures that the business owner
has found gives them the best chance of success. Anyone joining the franchise will be expected to
operate the business exactly as set out in the manual.
The purchase of a franchise will ... Show more content on Helpwriting.net ...
Each outlet should have a standard look and feel which builds confidence in the consumers eyes.
Whilst franchising is a safer route into self employment, it is not just a question of turning up,
paying your money and being successful. The franchisor will not do your work for you and cannot
be expected to. What is supplied is a proven format, name awareness, support and guidance. It will
be still be your hard work and skills that make the business work in your area.
As a franchisee you will have access to market knowledge, established name awareness in the
business sector that you will be operating in, training and marketing help. You will often take part in
and contribute to national advertising campaigns which would otherwise be outside your reach.
Franchisors not only have sound training programs, but also knowledge of financial requirements,
marketing, competition & buying contracts – knowledge that might take you years to collect on your
own.
Financially You will pay the franchisor an initial franchise fee and the costs of shop fitting (where
necessary) together with the costs of equipment required to run the business. Once established, you
will normally pay the Franchisor a further monthly payment based on your turnover. This is known
as royalties or monthly management fees. Effectively this is where you are paying for the ongoing
support of
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The Advantages and Disadvantages of Franchising in France
The Advantages and Disadvantages of Franchising in France 1 Running head: International Trade:
Licensing and Franchising The Advantages and Disadvantages of Franchising in France Presented
by: Deon E. Boswell Of Team McWorld University of Maryland University College AMBA606
November 4, 2005 The Advantages and Disadvantages of Franchising in France 2 Executive
Summary The tremendous growth in franchising over the last decade can be traced directly to the
explosion of growth in international trade and globalization. As organizations, attempt to enter new
markets they are finding that direct investment via subsidiary creation is an expensive proposition
and that their capital expenditures could be used for other opportunities ... Show more content on
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Franchising and licensing, however provide an attractive alternative for companies to grow market
share and revenue without the extraordinary capital expenditures. The next few pages will attempt to
explain the main differences between licensing and franchising as well as the advantages and
disadvantages of each. Additionally, the explanation will take into consideration the ways in which
franchising is adaptable to corporate expansion in France. Franchising and Licensing Defined The
line between franchising and licensing is not always clear and definitive. This is especially true
when companies attempt to establish a position across international borders. There are a myriad of
different laws and regulations that a firm must comply with in order to set up shop in a foreign
country. Hill (2005) would say that a country.s domestic firms have a competitive advantage over
foreign firms, if the domestic consumers are sophisticated, demanding, and have expectations of
high standards and product quality. However, many governments, in an attempt to protect their
domestic producers and the jobs they provide from foreign competition, place nontariff barriers into
the market place to prevent foreign competition. As such, companies seeking to invest and expand in
countries where product demand and non–tariff barriers are

Disadvantages Of Franchising
Now franchising study is one of the top issues of the Kazakhstan economy.
The word "franchising" comes from the old French term defining the right for freedom of
conducting any activity, for example, carrying out fairs, the organization of markets, operation of
ferries and crossings, the right for hunting, a construction of roads or production of ale. In the
Middle Ages kings had such privileges providing franchises on commercial activity of any type
possessed.
From other sources it is known that the Pope for ensuring the best taxation granted the right to
collect payments to certain persons in different geographical zones. These "collectors" were allowed
to keep themselves essential part of collecting.
At a turn of the nineteenth and twentieth century's the oil processing and automobile companies
began to grant the rights for sale of their production. At this ... Show more content on
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By the analyzed information provided by the Civil Code of the Republic of Kazakhstan, the Law of
the Republic of Kazakhstan of 24.06.2002 N 330–2 "About the complex enterprise license
(franchising)", professional literature, various financial magazines, newspapers and other means of
mass media I will try to open concept of franchising, to reveal advantages and shortcomings of these
contractual relations, to define a place and a role of franchising in our market, to draw the
corresponding conclusions.
Franchising in Kazakhstan is a quite new business. Even though monitoring isn't conducted, and
there is exact data on quantity and the general commodity turnover of the franchisee and the sub
franchisee, it is possible to speak about the growth of businessmen's interest in this method of the
business organization in Kazakhstan. The proof of it is increasing number of the enterprises working
according to the foreign franchise, including Russian

Franchising Is A Long Term Essay
Nowadays, franchising is one of the easiest ways to start a business. Franchising is defined as a
long–term, continuing business relationship wherein for consideration, the franchisor grants to the
franchise a licensed right, subject to agreed requirements and restrictions, to condusct business
utilising the trade and/or service marks of the franchisor and also provides to the franchisee advice
and assistance in organising, merchandising, and managing the business conducted to the licensee
1. The company granting these rights in deemed the franchisor, the receiver of these rights the
franchisee, and the right is defined as the franchise. The franchiser owns a trademark or brand,
which he (or she) agrees to allow the franchisee to use for a fee (often an original purchase price
plus a percentage of sales). The franchiser provides the franchisee with assistance (financial, choice
of site, and so on) in setting up their operation, and then maintains continuing control over various
aspects of the franchisee 's business; for example, via the supply of products, discussion of their
marketing plans and/or centralized staff training 2.
The franchising arrangement may be viewed as an agency relationship in which the franchisor
(principal) is reliant upon franchisees (agents) to undertake actions on their behalf 3. Franchising
organizations differ from other business, based on three important points 4 are:
1. Geographic dispersal of organizations units
2. Replication across

Franchising Is An Important Industry
INTRODUCTION
The idea of franchising has been a thought that dates all the way back to the middle ages when
landowners would grant peasants to hunt, hold fairs, and hold markets on their land. It was not until
1858 that franchising became an important industry. Today, franchising is still one of the largest
industries in existence ("The History Of Franchising," n.d.). Franchising is an agreement between a
party (Franchisor) who gives the privilege to another individual (Franchisee) to own, manage, and
run his or her business in another place with certain expenses that the franchisee is responsible for
and laws that the franchisee must abide by.
Over the years, franchising has become very important to the economy. When franchising is done ...
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The franchisor has the power to reject or accept anyone who wants to franchise his or her business.
Franchisors only accept a franchisee after the candidate passes certain company requirements that
show the franchisor that the candidate is serious about upholding the expectations for the franchise
that the franchisor has set in place. A consulting company (Reliable Background Screening) towards
franchisors, gives advice to franchisors and say, "By thoughtful and careful analysis, you improve
your odds of choosing the best franchisee owners to represent and promote your franchise company
's image and values. ("Background Checks to Protect Your Franchise Brand,"n.d.). Franchisors have
to make the right choice when it comes to picking their franchisee because in the future they will be
the one representing their company. If in the future the franchisee and franchisor are not seeing eye
to eye it can open up conflicts which can ultimately hurt their brand.
The Importance of the Franchisor
Franchising is quite different than other industries because two entrepreneurs are involved in it and
their relationship is vital for success. The franchisee needs the right tools, guidance, and a
respectable amount of money in order for him or her to generate the appropriate profits to make the
franchise worth the investment. However, franchisors must also be ready to assist their franchisees
with all of the tools and guidance they need to make them successful. Mark Siebert the CEO of

Franchising and Domino
PROJECT REPORT ON SUPPLY CHAIN MANAGEMENT OF DOMINO'S PIZZA SUBMITTED
TO:SUBMITTED BY:DR. HAIDER ALI KUMAR SHANTANU ROLL NO. 22 1 MBA(E–
BUSINESS) SEMESTER IV TABLE OF CONTENTS SL NO. 1. 2. 3. 4. 5. 6 7. PARTICULARS
ABOUT DOMINO'S PIZZA DOMINO'S IN INDIA MENU IN DOMINO'S COMPETITIVE
STRENGTHS OF DOMINO'S BUSINESS STRATEGY OF DOMINO'S STORE OPERATIONS
SUPPLY CHAIN OF DOMINO'S PAGE NO. 3 3 5 6 7 9 12 2 ABOUT DOMINO'S PIZZA
Founded in 1960, Domino 's Pizza is the recognized world leader in pizza delivery operating a
network of company–owned and franchise–owned stores in the United States and international
markets. Domino 's Pizza 's Vision illustrates a company of exceptional people on a mission to be
the best ... Show more content on Helpwriting.net ...
Domino's initiatives such as Fun Meal and Pizza Mania have been extremely popular with
consumers looking for an affordable and value for money meal option. The Brand Positioning of
Khushiyon ki Home Delivery (Happiness Home delivered) is the emotional benefit it offers to the
consumers. All the efforts, whether it is a new innovative and delicious product, offering consumers
value for money deals, great service, country wide presence or delivery in 30 minutes or free are all
oriented towards delivering happiness to the homes of the consumers. Consumers can order their
pizzas by calling the single Happiness Hotline number 1800–111–123 (in most cities of Domino 's
Pizzas Presence) and 44448888 (in NCR, Mumbai and Bangalore). 4 MENU IN DOMINO'S
VEGETARIAN SIMPLY VEG Margherita Cheese and Tomato pizza VEG I Double Cheese
Margherita Fresh Veggie Country Special Farm House VEG II Peppy Paneer Mexican Green Wave
Deluxe Veggie Gthemet FEAST PIZZA Veg Extravaganza NON–VEGETARIAN SIMPLY NON
VEG Cheese And Barbeque Chicken NON VEG I Barbeque Chicken Spicy Chicken NON VEG II
Chicken Mexican Red Wave FEAST PIZZA Meatzaa Keema Do Pyaaza Non Veg Extravaganza
Chicken Golden Cheese And Delight Pepperoni SIDE ORDERS 5 VEGETARIAN Veg Mexican
Wrap Veg Pasta Italiano White Veg Pasta Italiano Red Garlic Breadsticks Cheese Jalapeno Dip
Cheese Dip Choco Lava Cake NON–VEGETARIAN Veg Mexican Wrap Veg Pasta Italiano White
Veg Pasta Italiano Red Chicken

Advantages Of Franchising
Franchising is a type of business in which a business grants the other business the right to use the
brand name, business systems and processes in order to produce goods and services according to
certain specifications. The party which gives out the rights to the other party to use their name is
called the franchisor and the party purchasing the rights of the other business to use their name is
known as the franchisee. Franchising is a type of a license given by the franchisor to the franchisee
in order to allow the franchisee to sell goods and services under the name of the franchisor; the
franchisee pays a certain amount of fees to the franchisor to buy their license. Franchising is one of
the most popular methods in the world today to do ... Show more content on Helpwriting.net ...
There are many advantages of investing money in a franchise such as; a franchise includes an
already established business with a known brand name by the people. Franchise comes up with an
established business system which includes products and services. The franchisor offers the
franchisee the training of employees, financial planning of the business and also approved suppliers.
The disadvantages of franchising are there too, a lot of investment is required in order to buy the
rights of the franchisor as well as on–going royalty costs is costly. Other disadvantages include, less
creativity since the franchisee lacks the control in the territory because the franchisee has to work
according the business system of the franchisor. The business of franchising is a way to grow the
operations of a business; it allows the franchisor to sell its products a bigger market. The beauty of
franchising is that it allows both the parties, the franchisor and the franchisee to have a win–win
situation, franchisors who want to grow their business with a less amount of investment and
franchisee who wants to do business without starting from the

Dunkin' Donuts Franchising Essay
–––––––––––––––––––––––––––––––––––––––––––––––––
Business Plan Executive Summary Prepared for: Potential Investors Prepared by: Brown, Skylar;
Sherman, Sean; Song, Chhapon Mina; Sun, Jueiya Date: 12–02–11
–––––––––––––––––––––––––––––––––––––––––––––––––
Proposal: Dunkin' Donuts Franchising
Dunkin' Donuts was established by Bill Rosenberg in 1950 in Quincy, MA. Dunkin' Donuts started
license franchises in 1955. It is the world's leading baked goods and coffee chains serving more than
3 million customers per day. Dunkin' Donut sells 52 varieties of donuts and more than a dozen
coffee beverages as well as an array of bagels, breakfast sandwiches, and baked goods. At the end of
2010, there were 9,760 franchises all over the ... Show more content on Helpwriting.net ...
Sherman also has a clear understanding of the market trend and needs in the United States.
Jueiya Sun (HR manager) is a business economics major at Utica College. Sun has studied and lived
in many different countries including Taiwan, Korean, Thailand, Japan, and the U.S. He speaks 5
languages fluently, which are Mandarin Chinese, Korean, Thai, Japanese, and English. With such
experiences living abroad, Sun is a very diverse person who understands a lot about diversity both in
workplace and society as a whole. Given that Houston is a very diverse city, it is a plus if our
restaurant can show the customers how diverse we are and how understanding we are about
diversity. If we can serve diverse group of people well, our business will prosper. Sun is the person
who can make this happen with his past experiences.
Chhapon Mina Song (PR and Marketing Officer) is a PR major with a management minor at Utica
College. She is knowledgeable about intercultural communications. She understands well about
different expectations of customers from different cultures. With this knowledge, Song will be able
to build the relationship between our franchising restaurant with the public bringing good image to
our business. She is also passionate about public services and community work. She has helped
organizing several fundraising events at her previous

Franchising Sonic Drive-In Restaurants
Franchising Sonic Drive–In Restaurants What is a Franchise: A franchisee pays an initial fee and a
percentage of profit to a franchisor; in return, the franchisee gains the use of a trademark, ongoing
support from the franchisor, and the right to use the franchisor's system of doing business and sell its
products or services. Why I chose this restaurant: I have chosen sonic drive in because this
restaurant is in the USA and is very well known for its' fast food chains and roller skate
competitions and it has many franchises but all of them are in the USA that is why i would like to
bring this product to UAE, and also I think that many people from the USA would eat in this
restaurant because it would make them feel bit like home and maybe ... Show more content on
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However the system won't be anything new for Dubai as drive–thrus are common and sales will
rapidly build up. INITIAL INVESTMENT LOW: $1,070,000 HIGH: $1,967,000 it serves about 3
million customers per day and already has 3147 franchises in the state it also owns 382 other
companies, its revenues today are worth almost $546 million with net income of $19 million. I think
it would be a great name to franchise in Dubai because it is one of the USAs most famous fast food
shops and in Dubai we have many foreign people some from the USA, other than that it is cheap
like macdonalds so many people can afford it because of it low food pricing. It is also good as it will
be drive–ins which is a very common system and very efficient here in Dubai where we have drive –
thrus for everything that exists

What Are The Advantages And Disadvantages Of Franchising
Franchising is a method of doing business where we have a franchisor that trains and shares his
intellectual property with the franchisees that will be running the business as their own but under the
guidance as well as the brand name of the franchisor and they pay him a cut of the profits
Some well–known franchisers of today are McDonalds and KFC. Franchising in India wasn't
popular in the 1990 but now India had showed that she is one of the profitable destinations for a
foreign franchisor and the widespread of KFC and dominos proves that franchising is now a home
for millions and millions of people .... Franchising is a very important way for companies to grow
and it also helps the franchisee giving them support and ... Show more content on Helpwriting.net ...
And all of these are creating new jobs opportunities and changing a lot of the citizen's lifestyles
especially of the middle class that is growing with a better income.
Even though franchising has been in India for decades but the growth rate has only skyrocketed
during the last few years. There are already more than 600 franchising deals and brands in India and
most of them are American like pizza hut, Kodak, KFC, UPS ....
Some of the advantages of franchising in India and some of the reasons behind all these foreign
brands wanting in aside from India's huge market and growing demand in the 3 sectors of economy
are, first of all the lo capital requirements due to the fact that some of the Indian franchisees can
finance the businesses on their own and that way the franchisors will grow their brands without
putting a lot of money on the line. In second the diversity of India that plays a huge role as well as
the size and geography of India. We can't not mention the fact that Indian businessman like to have
control over what they own and pass it on to their heirs which is why it is safe to assume that the
business will stay running and in the family for a lot of coming generations. Finally one of the
factors of attraction is that Indians use English on a daily basis and we can say that it is their second
language and that means that the relationship between the franchisor

Essay On Franchising
3.3 Franchising Gong Cha is a successful international beverage franchise specializing in Tea,
Coffee, and Juice. From its start in sunny southern–western Kaohsiung, Gong Cha has grown to
860+ stores across 18 countries worldwide as of 2014, with a catalogue of over fifty–seven drinks
and still growing (Gong Cha, 2010). Franchising is one of the entry mode that can recommend to
Gong Cha to expand to overseas. According to Daniels(2004), franchising is a specialized form of
licensing in which the franchisor nor only sells an independent franchisee the use of the intangible
property (usually a trade mark or patents) essential to the franchisee' business but also operationally
assists the business on a continuing basis, such as through sales promotion and training. There are
two major franchising types which is product and trade name franchising and business format
"package" franchising. Product and trade name franchising refers to the distribution in which
suppliers make contracts with dealer to buy or sell products; dealers use the trade name, trademark
or product line. For business format "package" franchising. The package transferred by the
franchisor contains most elements necessary to establish a business and run it profitably. The
package can contain trademarks/names, copyright, designs, ... Show more content on
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We will create bubble tea recipes for our business, include only the most authentic, natural
ingredient in our bubble tea. Our mission is to provide great healthy beverage that's great for our
customer and stay true to them and the honest goodness nature intended. We specialize in organic
bubble tea that makes enjoying nutritious fast and easy. The menus are developed following the
healthy guidelines of the American Diabetes Association. Customers can trust our bubble tea to be
bursting with goodness and free from artificial

Domino's Franchising
Good Morning Ladies and Gentlemen I am .............................I'm a representative for Domino's
Pizza Australia. Today I will present to you the reasons why you should invest in my franchise. I
will be outlining the advantages and disadvantages of the franchise as well as a SWOT Analysis,
KPI's and I will suggest a suitable location for the franchise. But first, allow me to give you a brief
overview of what Dominos does. Like all big businesses they all started out small and grew over the
years. Dominos started in America with only one store in America. Then started to franchise around
the world. Domino 's Pizza Australia began in Red Hill, Brisbane, in 1978 as Silvio 's Dial–A–Pizza,
established by brothers Silvio and Fel ... Show more content on Helpwriting.net ...
Then I looked at the average individual income and it showed more information. In Gatton the
average individual income was $369 a week whereas in Kingscliff the average individual income
was $399 weekly. The last criteria I went through to choose the most convenient location for the
new franchise was the total population of people in the workforce. In Gatton the total population of
people in the work force was only 166 people whereas in Kingscliff the number of people in the
work force was 2460 people. After I went over the information the clear choice was to invest in a
franchise in Kingscliff as it is a growing town with a high number of people in the work force. The
choice to start up a new franchise in Kingscliff was more profitable than starting one up in Gatton as
the information shows that you get more customers where people have more money. The last piece
of criteria I used was the target age of the consumers. The average age for both place were the same
between 25–54 years of age. With this large number of people at that age they would be more likely
to Domino's take away. Strengths
There are a lot of strengths in investing a Domino's in Kingscliff. There would be ongoing traffic on
the holidays in particular and a lot of traffic means a lot of people going past and might like to stop
and get some pizza, this could also be

Essay on The Pros and Cons of Franchising
Advantages & Disadvantages of Franchising
Franchising is 'a continuing relationship in which the franchisor (the owner of a company) provides
a licensed privilege to the franchisee
(the buyer) to do business and offers assistance in organising, training, merchandising, marketing,
and managing in return for a consideration. It is a form of business by which the franchisor of a
product, service, or method obtains distribution through affiliated dealers (franchisees).'
(http://www.business.gov) A franchise is essentially a replica of an existing business. When you
purchase a franchise, you buy the rights to use the parent company's name and to sell its product or
service in exchange for an up–front franchise fee and ongoing royalties, which ... Show more
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'As a result, expansion can proceed at a much faster pace than would otherwise be possible, enabling
the franchisor to achieve increased market share whilst benefiting from economies of scale.'
(http://www.butterfield.co.za) Finally, franchisors can benefit from the cultural knowledge and
know–how of local managers. This can be helpful in lowering the risk of business failure in
unfamiliar markets, as well as creating a competitive advantage.
Franchising offers franchisees the advantage of starting up a new business quickly based on a
proven trademark and way of doing business, as opposed to building a new business from scratch.
The franchised business is based on a proven idea and has an existing customer base, therefore
making it much easier to sell your product than it would if you were to start up your own business.
By buying into a franchise you are gaining the benefit of the franchisors experience as well as the
name and reputation that has already been built up by the franchisor. Therefore it is no wonder that
'according to the U.S. Commerce Department, an estimated 95% of franchises succeed, whereas
only 25–35% of independent businesses succeed.'
(http://money.howstuffworks.com) It is also not surprising that franchising makes up for about 3.2
percent of all businesses and 35 percent of all retail and service revenue in the United States,
proving that it is big business.
Franchising is very often a wise choice because consumers like

Franchising in China
FRANCHISING
China Foto Press
s of the Foreign franch ises are reaching more Chinese consumers over larger segment
. country
The Pros and Cons of Franchising in China
US companies must jump hurdles to operate successful franchises in China, but the potential
benefits are too great to ignore.
William Edwards
40 July–September 2011 chinabusinessreview.com
FRANCHISING
W
estern and local franchise brands have developed group is largely a young, upwardly mobile, and
aspirational significantly in China over the past 15 years, as the two–income family demographic
with one child and Chinese consumer has become an engine of considerable discretionary income.
economic growth and the country's business environment has Food ... Show more content on
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In addition, the business can be a highly franchise, which allows an owner of an area license to sell
recognized foreign brand known for quality and service. On franchise licenses to other parties. the
negative side, to open a franchise a franchisee must pay an initial fee to acquire the brand, business
system, and other Business service franchises resources; pay on–going royalties; and follow the
franchise US business service franchises, such as AlphaGraphics, Inc. system. In the United States,
unit franchise licenses may run and Sir Speedy, Inc., began entering China in the 1990s, $10,000–
$50,000, and country or regional licenses may cost mainly to serve the increasing number of foreign
$200,000–$500,000. In China, the fees typically run representative offices in eastern cities. Before
these US brands $250,000–$750,000. entered China, there were few places where Chinese or
foreign companies could get printing service; print shops Filling consumer needs were not fully
equipped and staff did not speak English. As Chinese consumers earn more discretionary income,

After a slow start, many US hotel brands have entered they want the quality, brand, convenience,
and service China–some by granting franchise licenses and some associated with Western brands.

What Is Franchising?
1 Introduction
The purpose of this paper is to shed some light on the concept of franchising from the viewpoint of
the franchisor, discuss its different uses taking into account the advantages and disadvantages
attached to them, and link these considerations to a firm's internationalization decision–making
process.
1 What is franchising ?
Franchising as it is generally known today is a form of marketing or distribution in which a parent
company customarily grants an individual or a relatively small company the right, or privilege, to do
business in a described manner over a certain period of time in a specified place. The parent
company is termed the franchisor; the receiver of the privilege is called the franchisee; ... Show
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During the boom years in the United States, the nest of the franchising concept, franchising was
often touted as a surefire method of getting rich. For many it was. But for some unlucky people it
was a disaster. Shady or slipshod operators ruined a number of investors through dishonesty or sheer
incompetence. The government ultimately intervened and passed laws to protect consumers from
poorly set–up franchises or out–and–out frauds. Franchising underwent a baptism of fire and
emerged stronger than ever (Siegel 1983, 1).
3 Reasons behind rapid growth
There are several economic, social, and psychologic reasons that help explain why franchising has
managed to get a firm foothold particularly in industrialized countries. These factors are as follows:
1. Increased concentration of business to the hands of few and powerful companies threatened the
survival of SMEs. Higher efficiency and effectiveness requirements made franchising and other co–
operative forms a desirable choice.
2. In countries that have experienced relatively slow co–operative development between companies,
franchising has turned out to be a popular form of building competitive advantage and scale
economies.
3. In large countries, such as the United States, franchising has been an ideal operation mode to gain
a fair share of the market rapidly. This advantage is not applicable in the feasible sense in smaller

countries.
4. The truth is that today we

Franchising : An Exciting Venture Essay
Franchising has been long known to be an exciting venture for any person who wishes to buy into
the idea (Timmons and Spinelli, 2008). There is an assortment of elements that combine to ensure a
correct franchise opportunity is formed, which set the guidelines to ensure a franchisee is not being
induced into an unfair agreement. No successful franchise would be established without following
the four cornerstones of franchising (Webber, 2012 pg. 13), this includes: the license itself, the
assurance that the franchisor has rightful ownership to the company, the franchise agreement itself
and the structure of how the fees will be set out (Webber, 2012).
Before discussing what would make a just franchise opportunity, franchising itself must be defined.
There are a variety of definitions as to what franchising is. Most of these definitions come from
formal bodies such as the European Franchise Federation or the British Franchise Association
(Webber, 2012). The issue with all the definitions provided by such bodies, even if they are fit for
purpose, is the fact that each one of them misses out on main elements that combine to define
franchising (Webber, 2012). The main concept of franchising is where a franchisor grants an
individual with rights to their company to do business over a certain period, to which the individual
(the franchisee), must pay on going fees to retain the rights to the business (Elango and Fried, 1997).
However, there is much more to a franchise than simply

Is Franchising Increasingly Being Used By Franchisees As A...
Why is franchising increasingly being used by franchisees as a form of business start–up? Firstly, I
would like to put some light on the trade market that was there is late 1800s and early 1900s. This
was the time when businesses used to trade within their countries only. Slowly businesses started
growing. This was the time when the entrepreneurs started trading globally. Hence, in 1950s the
growing of businesses internationally was termed as 'Globalisation'. Globalisation is the process by
which the world is becoming increasingly interconnected as a result of massively increased trade
and cultural exchange
(http://www.bbc.co.uk/schools/gcsebitesize/geography/globalisation/globalisation_rev1.shtml).
Globalisation has increased trade internationally. Firms which were national firms are today
Multinational Companies. Globalisation has rapidly increased in the last 50 years. Hence
globalisation has resulted in increasing demand of the products, hence benefiting the economies of
scale. As there is an increase in investment by the companies, there is sharing of knowledge and
technology between the countries. It has also helped to reduce unemployment all around the world.
But like everything, globalisation also has its disadvantages. As countries are becoming more and
more dependent on each other, a bad economic shock in one country can affect the economy of other
countries as
well(http://www.economicsonline.co.uk/Global_economics/Globalisation_introduction.html). It has
also

The Franchising Scheme Of Mcdonalds
1) Back in the 1960s and 1970s, company and corporations tried to branch out using the franchising
scheme, since it's the safest way for both the franchisor and franchisee. Compared to others,
McDonald was way ahead of their competition again when it comes to franchising. Unlike other fast
food chains, McDonalds' executives were interested in expanding their franchises by offering lower
franchising fee instead of demanding a large fee up front, sold off the rights to entire territories, and
earned money by selling supplies directly to their franchises. Together with their well–known brand
recognition, McDonalds continues to expand more and more, just like what Ray Kroc wanted from
the beginning. This kind of explained why there are so many McDonalds restaurants compared to
others, such as Carl's Jr and Burgers King. While this might seems like a good business decision for
the company, it's a 2 way knife for franchisee. Instead of demanding large royalties or selling
supplies, McDonald became the landlord for most of their franchises. These franchisee have to pay
up to 40% markup and that one single contract breach could lead to franchisee's eviction. Over the
years, this eventually turned into a good business for company and as one of McDonalds' executive
put it'' We are in the real estate business and the only reasons that we were able to sell fifteen cent
hamburgers is because it is the only way that help our tenants to us our rent.'' In other words, to open
up a franchise

Case Study Of Franchising
Introduction Franchising is simply treated as for expanding a business and distributing goods and
services through a contract based relationship. In franchising, franchisors [whose business is handed
over to a third party to manage, and with its trademark] not only specify the products and services
that will be provided by the franchisees [a person or company who is given authority to do business
under the trademark and trade name by the franchisor], but also provide them with an operating
system, brand and support. Franchise is treated as a form of business that is more popular during the
present context. Its popularity has to do with its proven track record of success, ... Show more
A new business claims a great deal of time, effort and sacrifice. New individuals are motivated by
their ownership of the business and the capital they have invested. So by franchising, you are going
to get better talent that will work harder to form the business.
 Market influence. Multiple locations increase the company's competitive asset over similar type
businesses. It has large formations around the world and operates through a network of local
representatives in different market layers.
 Better buying competence. Franchisors that purchase products and services for their franchise
network can often bargain volume discounts from dealers and suppliers. Sharing a chunk of the
saving with franchisees supplies higher operating margins and a competitive benefit over other
related businesses.
 Product dispersion. Franchises get use of a franchisor's trademark and emblem to sell products.
Most franchises are business layout, which provides products and procedures to run the business.
Franchisors offer financial, marketing, and coaching support to franchisees to help them sprout their
business in exchange for fees for using the franchisor's trade name and business

Case Study Of Frranquicias And Franchising
1.1.5.1.3 Franquicias / Franchising
Combs J.G. and Castrogiovanni G.J., (1993) argued that a franchise is an organization designed to
allow franchisors to obtain the resources needed to accelerate the growth of the company, with the
aim of reaching a minimum level of efficiency and thus strengthen the brand awareness.
Davies J. (2015, p. 62) adds that "a franchise is generally a form of business organization in which a
franchisor as owner of a trademark or trade name conveys to one or more independent entities, the
franchisees, the right to market a product or service, usually within a specified geographic area and
subject to a number of franchisor–imposed constraints. The wider franchise system is essentially a
virtual organization comprising ... Show more content on Helpwriting.net ...
(2000, p. 6) a joint venture is a "business partnership in which two or more companies agree to
invest [...] in a particular business activity. The main purpose of many join ventures is to create a
strategic alliance between separate companies with common interests and complementary skills or
experience."
A joint venture is a business established abroad in which an international company has equity in a
local company to manage it, but it does not have full power to control all the company (Terpstra et
al. 2012). The mixed ventures are joint ventures undertaken with government entities.
Authors state that the objectives of an international joint venture are: to gain access to foreign
markets, to allow R&D cooperation to develop new products or to solve supply chain problems. The
joint ventures have as advantage: greater gaining potential as opposed to royalties, greater control
over production and marketing, better feedback from consumers, and more experience in
international marketing.
1.1.5.2.2 Alianzas estratégicas / Strategic alliance
A strategic alliance is the establishment of contractual relations between a company and a partner; it
can involve competitors and usually does not lead to

Franchising in China
FRANCHISING
China Foto Press
s of the Foreign franch ises are reaching more Chinese consumers over larger segment
. country
The Pros and Cons of Franchising in China
US companies must jump hurdles to operate successful franchises in China, but the potential
benefits are too great to ignore.
William Edwards
40 July–September 2011 chinabusinessreview.com
FRANCHISING
W
estern and local franchise brands have developed group is largely a young, upwardly mobile, and
aspirational significantly in China over the past 15 years, as the two–income family demographic
with one child and Chinese consumer has become an engine of considerable discretionary income.
economic growth and the country's business environment has Food service improved. ... Show more
healthy and reproducible bottom line margins. US franchises in China thus have high potential to
succeed. I Second– and third–tier cities are open to franchising. First–tier cities offer developed
infrastructure, businessfriendly governments, and a multitude of services and internationally
standard amenities. These cities are generally "easy" for newcomers to enter, but labor and real
estate prices have risen and competition has intensified in recent years. Second–tier cities have
millions of potential consumers and often have lower labor and real estate costs and local
governments that encourage the creation of new businesses (see the CBR, November–December
2010, p.12). In addition, US food franchisors are increasingly allowing small companies to own
franchises–a trend that KFC and Papa John's started in second– and third–tier cities in the last few
years.

...and challenges
Foreign franchises must also overcome problems that are specific to the China market. I Intellectual
property protection is uneven. Weak intellectual property enforcement and an inadequate legal
framework are key reasons early foreign brands opened as company–owned stores or JVs, instead of
franchises, in China. Many US brands have seen local
The sheer size of China, and its diversity of business and food culture, makes franchise development
difficult.
Foreign franchises face opportunities...
Many trends indicate that the China market is ripe for franchises. I The consumer class is

Case Study : Franchising And Marketing Management Essay
Franchising and Marketing Management
Investigate and evaluate small business franchising options. 6412
NATIONAL DIPLOMA IN BUSINESS MANAGEMENT LEVEL 6
RAJ KUMAR ND15182
Task One – General Franchising questions 'franchising'
1.1
According to me a franchising is an arrangement in which one party the franchisor allow another
party the franchisee the right to use its trademark, company's name as well as certain business
systems and processes, to produce and market a good or services according to certain condition.The
franchisee pays one time franchisee, royalty and profits.It helps franchisor to expand his business.
Assistances provided to franchisee by franchiser are Marketing, management, advertising, store
design, standards specifications etc.
Integrated business operations
In integrated business operations the franchiser themselves owns and controls all the franchise. By
this way the organisation is aligned and profit is increased.
Single product or service operations Franchisee is given all the rights to sell the single product
supplied by the franchiser, But they have to obey some policies such as they have to but products
from a designated supplier. Manufacturing and wholesale Manufacturer sponsored wholesale
franchise systems: In these the manufacturer supply the base materials and the franchisee make and
sell the final product.
Manufacturing and retail

Global Business : Franchising Of Brazil
Global Business – Franchising in Brazil
1. Country Background
1.1 Brazil – Federative Republic of Brazil
1.2 Neighboring countries include Argentina, Bolivia, Colombia, French Guiana, Guyana, Paraguay,
Peru, Suriname, Uruguay, and Venezuela ("Country Report – Brazil," 2015).
1.3 The territorial size of the country is 8,515,800 sq. km
1.4 Brazil's population is 201,032,714 ("Country Report – Brazil," 2015).
1.5 Brazil's political system is a federal republic and its Constitution confers powers to the
executive, the judiciary, and the legislature ("Brazil," 2015).
1.6 Brazil's head of state and government is President Dilma Roussef ("Brazil," 2015, p. 56).
1.7 The political party that is in power in Brazil is the Worker's Party ("Worker's ... Show more
1.13 Brazil's major imports include "machinery, electrical and transport equipment, chemical
products, oil, automotive parts, electronics" from its primary imports partners "US (16.12 percent of
total imports), China (12.61 percent), Argentina (8.77 percent), Germany (7.65 percent), Japan (4.3
percent)" ("Brazil Exports, Imports & Trade").
1.14 Brazil is a member of the following economic integration organizations – the Inter–American
Development Bank, G–20, International Monetary Fund, World Bank, and World Trade
Organization ("US Relations").
1.15 Brazil's currency is the Brazil Real.
1.16 Brazil's currency is freely exchanged. Its most popular exchange rate is the Euro and its current
exchange rate with the USD is 0.26690 ("BRL – Brazilian Real").
2. Business Proposition
It is a good opportunity for U.S. companies to invest in a franchise in Brazil because the risk of
failure in a franchise business in the country is very low compared to non–franchise businesses, it is
the easiest and fastest business to launch in the country and because Brazil ranks fifth in the world
franchising league table.
2.1. The risk of failure in a franchise business in Brazil is very low compared to non–franchise
businesses. This assertion is made based on a source (Geromel, 2012) that included this statement as
part of an article claiming that franchising is the best way of investing in Brazil. The source supports
the claim that franchising is a good investment in Brazil by

International Franchising
Abstract
This paper is concerned with evaluating the structure, history, cultural aspects, leading businesses,
and the future of international franchising. Franchising has become an increasingly popular market–
entry mode, and the use of franchise systems for expansion into international markets is expected to
continue and perhaps intensify. (Arthur Anderson, 1996) These business franchises appear as hotel
chains, fast food restaurants, and many others. The first section examines the definition of
franchising by giving an overview of franchising from an international perspective. The historical
section traces this form of business ownership from its beginnings in the Middle Ages to the current
trend in international expansion. The ... Show more content on Helpwriting.net ...
Over the course of time, the regulations governing franchises became a part of European Common
Law. Throughout the centuries the franchising concept has evolved as the economies of the nations
of the world have evolved. During the early 1800s in Germany, certain major ale brewers granted
franchises to certain taverns, giving those taverns the exclusive right to sell their ale. This marked
the beginning of the concept of franchising as we know it today. In 1851, the Singer Sewing
Company became the forerunners of modern franchising agreements through the contracts that it
would associate with its franchising activities. In the 1880s, cities began to grant monopoly
franchises to street car companies and utilities for water, sewerage, gas, and later, electricity.
Another stage in the evolution of franchising came around the turn of the 20th century when oil
refinery companies and the automobile manufacturers began to grant the right to sell their products.
Business format franchising, which is the dominant mode of franchising today, came onto the
economic scene after World War II with the return of the millions of U.S. servicemen and women
causing the subsequent baby boom. Franchising became the ideal business model for the rapid
expansion of the hotel/motel and fast food industries. International franchising started its beginnings
in the early 1960 's. However, the explosion of the 1960s and 70s saw many forms of abuse in the

Discuss The Essence Of Franchising
1. The essence of franchising as a special form of business organizational structure
1.1 The history of franchising
To begin with, the concept of "franchising" originally appeared in Britain in the 10th century and as
a term described a variety of benefits, which were provided to the citizens in the context of the
electoral process. However, the revival of franchising as a modern business institution is marked by
the year 1840, the year of the appearance of the first worldwide franchise network (the system of
"tied pubs") in the UK, which was used by the brewers in order to maintain the necessary volume of
sales. In fact, the "tied pubs system" operated in accordance with the following principle: in
exchange for a loan or rental property a brewer was provided with an inn, that is, with the possibility
to sell beer and alcoholic beverages (Lashley & Rowson, 2002). At this point, it should be noted that
the abovementioned system still exists these days, which illustrates the effectiveness of such type of
business. ... Show more content on Helpwriting.net ...
As a result of the absence of sufficient established which would have enabled the organization of
customer service throughout the United States, in 1851 the company developed a franchise network,
which provided financially independent firms (distributors) with the right to sell and to conduct
service of the Singer sewing machines within a particular area (Karimova, 2013). Consequently, an
analogy between the contract, which was introduced by the Singer Company, and the modern
franchise agreement can be

Franchising Is A Major Driver Of Business Development And...
According to Hill, Jones, and Schilling (2015), franchising is a strategy in which the franchisor or
the founding company grants the franchisee, the purchasing company, the right to use the
franchisor's name, reputation, and business model in return for a fee and often percentage of the
profit. The business must operate under strict guidelines, follow the rules, regulations, and standards
given by the founding franchisor (Hill, et al 2015, p. 182). In return this creates a business
relationship between the two. According to Ribeiro, D., & Akehurst, G. P. (2014) franchising has
become a major driver of business development and franchisor brand equity is a critical factor with
a clear impact on the perception and behavior of the franchise. Franchises brings together
independent companies and establish agreements between two parties.
Requirements
Hill, et al, (2015), states that typically, franchisees must adhere to some strict rules which governs
how to do business. The franchisor requires them to take the same basic business model and run in a
certain manner. They must have the same basic look, operate in a certain way, feel, offering, pricing
and business processes as other. The founding business assists the franchisee and typically receives a
percentage of the revenues (Hill, et al 2015, p. 182).
On the other Ribeiro, et al (2014), believes that in order for a franchisee to commence first, there is a
market relationship in which franchisor and franchisee attempt to maximize

Franchising Is The Single Most Successful Marketing...
"Franchising is the wave of the future," according to the U.S. Department of Commerce. John
Naisbitt writes in Megatrends that "Franchising is the single most successful marketing concept
ever." Nowadays, McDonald's Corporation has 36,368 restaurants around the world. McDonald's
has established its success based on a widespread practise in capitalistic societies, known as
franchising. Many entrepreneurs (the franchisees) have chosen to acquire a franchise to access the
knowledge, the trademark, and the processes of a corporation (the franchisor); in order to sell a
product, or provide a service under the business' name. In return, depending on the franchise
contract, the franchisee usually pays additional money for the start–up of his company, and annual
licensing fees. Franchises are extremely popular among entrepreneurs who wish to operate in highly
competitive industries, such as fast–food industry. In fact, franchises' biggest advantage is
trademarks. Through franchising, entrepreneurs gain access to an established company's brand
name, already known by the customers. Also, the franchisor often provides assistance before and
during the life of the franchise. Of course, success is not guaranteed, and work and talent have to be
invested to attain profits. Many americans have achieved wealthiness through franchising. Thus,
despite the fact that some entrepreneurs who attempted this endeavor have not been so fortunate,
and eventually declared bankruptcy, I strongly believe

Case Study : Franchising And Marketing Management Essay
Franchising and Marketing Management
Investigate and evaluate small business franchising options
7/11/2015
ND : 15275
MANPREET SINGH
Task One
Question 1.1 : Identify types of business franchises and differentiate key factors. Research and
provide existing examples of each type in relation to existing franchise business operations.
Franchise type must include the following:
ANS: INTRODUCTION: Business has got more competitive and more complicated these days. If
you don't keep up with changing tastes and changing technology, your sales will decline. If you
don't have real buying power with suppliers and landlords, you can't charge competitive prices. Put
these together and it can be hard for small businesses to make a profit.
That's the beauty of franchising. Franchisees enjoy the benefits of specialist help when it comes to
marketing, product development, computer systems, suppliers and much, much more. A good
franchise gives the small business owner the chance to compete with the big boys. No wonder it's so
popular with New Zealanders.
On this website, you'll find new ideas from home and overseas; new opportunities from well–
established brands; and new locations available all around the country. But you still need to be
careful if you're to find an opportunity that suits your own abilities, goals and financial needs.
(franchies newzeland, 2015) Types must include the following:
:
Integrated business operations: it is called master franchise. Master

Franchising Is A System Or Method Of Marketing A Product...
In general, franchising is a system or method of marketing a product or service. Since a Franchisor
develops a special product, service or system and has been recognized in nation, then it is possible
to exploit the current business. A franchisor grants a right or license to independent businessmen
throughout the world. Another definition emphasizes that franchising is an agreement between two
legally independent parties. (Lafontaine and Shaw, 1999) In this agreement business owner
(franchisor) license its trademark and business concept out to a person or a group of people
(franchisee). Franchising is a form of business that both parties get benefit and satisfaction when
properly structured and well run. Because between franchisor and ... Show more content on
Helpwriting.net ...
These dues provide revenues necessary for the franchiser to operate and provide systems, training,
marketing, promotion and other services to all the franchise owners in the system. (Selig, 1998)
Figure 1 Franchising Concept
According to the Department of Commerce, the following are some of the major reasons why
companies decide to franchise (Selig, 1998)
Franchising provides an effective method for raising capital to finance expansion.
Franchising enables the franchiser to pool resources, advertise and promote, achieve economies of
scale in purchases, expand internationally and develop new products and services.
Franchising provides the franchiser quality control, consistency, and uniformity over goods and
services produced and/or distributed as well as media, public relations, image and appearance.
Franchising provides flexibility for respond¬ing to changing customer needs and emerging markets
within a wide variety of sectors.
Individuals become franchisees for a number of reasons.
Individuals, who want to become business owners versus employees, are not comfortable doing it
alone, but are comfortable working within a framework such as a franchise.
Individuals want to pursue the American dream of achieving high rewards through risk sharing in a
quasi–structured environment.
Individuals want the benefits of a franchiser 's name recognition, network, systems, training, and
infrastructure to help establish and grow

Advantages And Disadvantages Of Franchising
Introduction
At present concept of franchising and management agreements appears to be common in business,
because these agreements can benefit both sides. Franchising is one of the most frequently used and
wide spread tool for the business development all over the world. This tool contributes to the rapid
extension of the different networks of numerous companies, which without its development would
have no such chance of success. The most successful franchises connected with the everyday human
needs. According to Kathryn Shaw, franchise "is typically defined as a contractual arrangement
between two legally independent firms, whereby the franchisee pays the franchiser for the right to
sell the product or the right to use its trademarks in a ... Show more content on Helpwriting.net ...
The first reason is that contract management significantly increases financial value. In case contracts
are managed improperly, the income is constantly decreased. Therefore, if an organization strives to
research, execute and approve contracts more efficiently, it will strengthen financial performance. At
present Contract management allows to reduce operating costs. At present such things as ineffective
negotiations, inappropriate contracts extremely slow down business processes, which cause an
impact on the final result. Moreover, every extra day causes the destruction of business and
reduction the company's income. Consequently, Contract management preserves business and
decreases operating costs. In addition, business always involves different risks which extremely
difficult to except. However, due to contract management all compliance risks are reduced
successfully. Eventually, contract management appear to be essential part for building infrastructural
growth of

Investigating And Evaluate Small Business Franchising Options
Harjinder Singh
UNIT STANDARD 6412
INVESTIGATE AND EVALUATE SMALL BUSINESS FRANCHISING OPTIONS
1.1 Key factors of franchises 1.1Types of franchises
Factor
Definition
Single product or service
A distributor acts as an outlet for the single products of a manufacturer.
Manufacturing and wholesale
The franchisor supplies raw materials and/or specialised knowledge to a franchisee who
manufactures and wholesale distributes the finished product.
Manufacturing and retail
The franchisor supplies raw materials and/or specialised knowledge to a franchisee who
manufactures and retail distributes the finished product
Wholesale and retail
The franchisor only do the wholesale and retail distributes the finished product.
Retail product
The franchisor only do the retail product distributes the finished product.
Retail service
The franchisor only do the retail service distributes the finished product.
Ideas
The franchisor markets a unique business system under a trade name and franchising adopt the
standardise procedures to run their own business.
Intellectual property
The franchisor markets a unique business system under a trade name( use intellectual property) to
run their own business.
1.2 Concept of franchises
Concept
Explanation
Linked individual enterprises
The franchisor is linked to the franchise and any other franchisee.

Agreed business terms
Documents for franchise contract for setting up a term and relations to tell both parties what must

A Formal Definition Of Franchising
Introduction and Overview
In the business world there are many routes businesses can take to try to ensure a successful venture.
There are sole proprietorships, partnerships, limited liability partnerships, corporations, limited
liability corporations, S corporations, and then there is franchising. A formal definition of
franchising is "a continuing relationship in which a franchisor provides a licensed privilege to the
franchisee to do business and offers assistance in organizing, training, merchandising, marketing and
managing in return for a monetary consideration" (Franchising, n.d.). In simpler terms, franchising
is paying someone for their business, marketing, and operations strategy, as well as the use of their
name (Obringer, n.d.). Discussed next are the important roles in franchising.
Two Roles of Franchising
There are two important roles in franchising are the franchisor and the franchisee. The franchisor is
the owner of the brand, product, or service, while the franchisee is the party that pays for the right to
use the brand, product, or service. Usually the franchisee "pays a one–time franchisee fee plus a
percentage of sales revenue as royalty" (What is..., n.d.). Unfortunately the franchisee fee does not
include all of the necessary start up costs. There are many other fees and costs to be expected in
order to successfully start up a franchise. These costs are worth it to franchisees though, because
once the fees are paid they "gain immediate name recognition,

Franchising Benefits And Strategies Of Franchising
Franchising It is said that today there is a total of 750,000 franchise establishments within the U.S.
itself. Franchising is a long–term agreement between two parties, and is when the franchisor grants
the franchisee the right to use a trademark or trade name in a business process. In a franchise
agreement the franchisee would in most cases purchase or lease the trademark or logo from the
franchisor. Within this transaction the franchisee also pays its franchisor sales revenue or royalty
fees. In return, the franchisee receives detailed and structured tactics, describing the process of how
the business is run. These tactics include promotion, hiring and training employees, upgrading
product or service, as well as maintaining design or décor (What is Franchising).
It is common for people to think of franchising as an industry, and although it can be considered to
be an industry, it can also be seen as a "business model". Dr. Vinay Garg, a professor at Missouri
State University took time researching franchising benefits and strategies. Garg has studied and
surveyed over 1000 franchise businesses. He found that franchising could be a great opportunity for
any individual to become an entrepreneur by starting his or her own business. Since franchisors such
as McDonalds or Dunkin Donuts is well known to the public, the franchisee will find it less difficult
to bring in customers (Mostyn).
Companies and large businesses such as McDonald's and Starbucks are known for taking

Franchising Is A Major Driver Of Business Development And...
Franchising
According to Hill, Jones, and Schilling (2015), franchising is a strategy in which the franchisor or
the founding company grants the franchisees, the purchasing company, the right to use the
franchisor's name, reputation, and business model in return for a franchise fee and often a
percentage fee and often a percentage of the profit. The business must operate under strict
guidelines, follow the rules, regulations, and standards given by the founding franchisors (Hill, et al
2015, p. 182). This creates a business relationship between the two. According to Ribeiro, D., &
Akehurst, G. P. (2014) franchising has become a major driver of business development and
franchisor brand equity is a critical factor with a clear impact on the perception and behavior of the
franchise. Franchises brings together independent companies and establish agreements between two
parties.
Requirement to become a franchise
Hill, et al, (2015), states that typically, franchisees must adhere to some strict rules which governs
how to do business. The franchisor requires them to take the same basic business model and run in a
certain manner. They must have the same basic look, operate in a certain way, feel, offering, pricing
and business processes as other. The founding business assists the franchisee and typically receives a
percentage of the revenues (Hill, et al 2015, p. 182).
On the other Ribeiro, et al (2014), believes that in order for a franchisee to commence first, there is a
market

Case Study: Franchising
Franchising
Gong cha is a successful international beverage franchise specializing in Tea, Juice and Coffee.
Started in sunny southern–western Kaohsiung, it has grown to more than 860 stores across 18
countries worldwide as of 2014, with a catalogue of over fifty–seven drinks and now it is still
growing (Gong Cha, 2010). Franchising strategy is one of the entry mode that can recommend to
Gong Cha to expand overseas.
According to Daniels(2004), franchising is a specialized form of licensing for the franchisor. Not
only sells an independent franchisee the use of the intangible property essential to the franchisee'
business but also operationally assists the business on a continuing basis through training and sales
promotion.
The best example ... Show more content on Helpwriting.net ...
More than 63 percent buy organic food and beverages at least sometimes. In United States, the
increasing usage of pesticides and antibiotics in the food products are raising health concerns. The
Centers for Disease Control and Prevention, 2013 stated that about 1.1 billion pounds of pesticides
active ingredients are being used annually in the country. Over 20,000 pesticides products are being
marketed annually, which is adversely impacting the health of the consumers. Therefore, the organic
foods which are produced using environment and animal friendly organic farming methods are
getting awareness in the country. About 81 percent families are purchasing organic at least some
times which estimated by Organic Trade Association 2012
Due to the rapid growth in the organic sector, our team planned to focus on selling organic bubble
tea. We will create bubble tea recipes for our business, include only the most authentic, natural
ingredient in our bubble tea. Our mission is to provide great healthy beverage that's great for our
customer, stay true to them and the honest goodness nature intended. The menus are developed will
following the healthy guidelines of the American Diabetes Association. Customers can trust our
bubble tea to be bursting with goodness and free from artificial

Advantages Of Restaurant Franchising
Franchising has always been an effective and efficient means of expanding businesses and there is a
firmly established franchise market in the United States and the United Kingdom. Franchising offers
several advantages, such as relatively unsaturated markets, transitioning economies, free–trade
zones, friendly business laws, and liberalized markets and most of which come from emerging
markets. Lots of multinational companies have chosen to franchise as a means to enter the emerging
markets because it is governed by a contractual agreement which provides a desirable competitive
advantage. (e.g. Paswan and Kantamneni, 2004; Alon, 2004). Trying to Explain the extraordinary
growth of restaurant franchising within the United Kingdom and the United States has been one of
the major focuses in the academic franchising literature over a couple of years. In the United States,
United Kingdom, Canada, and some other parts of Western Europe, restaurant franchising has
attained domestic market saturation, consequently, emerging markets stay relatively unexploited.
The establishment of Restaurant franchising in emerging markets is primarily within the last 20–30
years through corporate franchise agreements and master franchises, and to some extent, conversion
franchising and joint venture franchising (Alon, I., Falbe, C.M., and Welsh1 ... Show more content
on Helpwriting.net ...
has been proven to be successful through franchising. Annually, franchising accounts for the
turnover of over USD$850 billion in America, USD$300 billion in Europe, and USD$130 billion in
Australia. International restaurants such as Jamie's Italian, and Wagamama have used franchising to
grow their business in both traditional economies and emerging markets successfully. US–owned
restaurants such as McDonald's, Domino's Pizza, Dine Equity and IHOP have been at the forefront
of international franchising for a long

Franchising
International Marketing Management
Using Business Format Franchising as a Market Entry Method
McDonald's
Student Name: Nursulu
Student ID:
Lecturer: Dr. Lester Massingham/ Dr. Tom
Abstract
This report is based on the advantages and disadvantages of business format franchising and the
fundamentals of market entry methods. Using McDonalds which happens to be one of the largest
food service companies in the world, the author of this paper will look into the concepts of various
market entry strategies in comparison to business format franchising. This report will also look into
various elements that will essentially be needed to be addressed. It will critically discuss the various
aspects involved in franchising as a market entry ... Show more content on Helpwriting.net ...
It has been seen as the most widely utilised mode of entry towards rapid international expansion and
is primarily employed by fast food chains such as KFC, Wendy's, Kenny Rogers, A & W and
McDonald's among others followed by consumer service businesses such as hotel chains and car
rental, agencies such as Avis and Hertz. Franchises are basically ongoing business relationships
which involves 2 components (the franchisor and the franchisee). The franchisor (the owners of the
business format) issues a licence through an agreement which allows the franchisee the right or
privilege to distribute the goods and services that represents the franchisor's brand and business
system for an agreed sum (royalty or fee) (Doole & Lowe, 2008). In other words, franchising
allows the rapid growth or market expansion using a proven business format (intellectual property of
the franchisor) it also allows the assistance in the form of capital as well as the fervour of a group of
network operators that enhance the market positioning of the franchisee which would not be
possible for a new business without huge capitals (Dugan, 1998).
The basics of franchising involve the following elements which are most commonly found in most
franchise agreements. These factors are common, but not compulsory as it depends on the mutual
understanding between the franchisor and the franchisee.
Franchise Agreement Elements

Franchising: A Case Study
Franchising is a common term in daily life, business discourse, and the law. Nevertheless, the term
is used in different contexts and with different meanings. Coughlan, Anderson, Stern, and El–Ansary
employ the European Union's description of franchising as a "...package of industrial or intellectual
property rights." The EU identifies three features of franchising–a common name or sign, with a
uniform presentation of the premises, communication of know–how from franchisor to franchisee,
and continuing provision of commercial or technical services by the franchisor to the franchisee.
Coughlan, et. al. point out that the EU description may be too restrictive [1, p.52].
Franchising has been associated with a variety of institutional arrangements. ... Show more content
on Helpwriting.net ...
Hayek addressed the role of the information content of prices (broadly defined) in the mid–20th
century debate with Keynes and other advocates of central planning regarding the role of markets
versus centralized planning in coordinating economic life–in answering the basic economic
questions posed above. Some critics of market coordination stressed the lack of realism in the
perfect competition model and concluded that the resultant market failure rendered central planning
a superior way to direct an aggregate economy as opposed to the decentralized direction implied by
the invisible hand.
Hayek did not deny the absence of perfect information in actual markets. Instead, Hayek compared
the quality of information in an admittedly imperfect, decentralized price system with the quality of
information in decisions rendered by a centralized planner. Hayek asserted that the imperfect
information dispersed among decentralized decision makers in a price mechanism led to superior
outcomes than those based on aggregations of data employed by central planners who used
summary data to direct the basic economic decisions of decentralized decision

Franchising
In today's uncertainty economic climate, UK's economy's growth in long period has stopped and has
been in recession since July 2008. This was caused by key global problems such as rising in
commodity prices, house price bubbles, volatility in financial markets and of course the credit
crunch. These give a great impact on the business sector. Reduction orders or demands have led to
closure of many companies across all sectors. Small businesses are struggling to access the capital
needed to stay open, pay debts, maintain payroll and expand operations. The problem is worse for
those looking to get into business for themselves for the first time. The Federation of Small Business
indicated that about 280 small companies are going out of ... Show more content on Helpwriting.net
...
For businesses that experience finance, human resource and property restraints to achieving
expansion, franchising is a way to expand businesses with relatively cheap and risk–free as
franchisee finance the majority of the cost such as the premises, vehicles or whatever necessary to
grow the business. In other words franchising is a way to secure capital for franchisor. By allowing
other ambitious business people to create another branch to a small business, its enable the owner to
keep tight hold on overhead, marketing costs and salary, as Harvard Business School assistant
professor Dennis Campbell notes, companies which use franchising do not need to invest time and
energy in investing highly–skilled managers, allowing significant cost savings not least in terms of
wages. This means the franchisor can use its time and capital for other purposes. Robert E. Bennet
indicated that economies of scale in purchasing could be achieved much faster by a small company
expanding through the franchise route.
The franchisees also will have to run their businesses themselves. This will reduce the management
demands placed on the franchisor. The best franchisees will be highly motivated and have local
expertise. This is the one of the best elements of the franchise system where the franchisees will
have to personally spend their money, time and

Exploration Of Franchising Essay

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