Franchising has grown significantly since the mid-19th century with brands like Ford, Shell, and McDonald's. It allows franchisors to expand more quickly while providing franchisees with established business systems and brand names. There are three main types: product distribution, business format, and management franchises. Franchising is important for small businesses as it provides economies of scale, standardized quality, and a proven business model. Both franchisors and franchisees must carefully consider factors like support provided, rights and obligations, and financial viability. Overall, franchising can be a successful business strategy when both parties enter with proper preparation and legal protections.

1. An Introduction to Franchising and its Importance for Entrepreneurs and Small and Medium-Sized Industries by Tan Tee Jim, S.C . Senior Partner, Head, IP & IT, Lee & Lee Kuala Lumpur, July 2008

11. PRODUCT DISTRIBUTION FRANCHISES Produces the syrup concentrate Sells the syrup concentrate FRANCHISEE Produces the final drink Retail Stores Restaurants & F&B Outlets Vending Machine Operators

13. Famous Examples

14. BUSINESS FORMAT FRANCHISING - outlet in Sale, Australia outlet in Marseille, France

16. Famous Examples

30. FRANCHISING IN SINGAPORE Reason for Franchising 2/3 of franchisees felt that economies of scale in bulk purchasing encouraged them to consider franchising

31. FRANCHISING IN SINGAPORE Feasibility of Franchising Franchising is a more feasible option of business expansion than starting own outlets

32. FRANCHISING IN SINGAPORE Success of the Franchise

33. FRANCHISING IN SINGAPORE Success of Franchising Franchisors’ Improvement in Average Monthly Sales since Franchising

34. FRANCHISING IN SINGAPORE Success of Franchising Franchisors’ Improvement in Average Monthly Net Profit since Franchising

35. FRANCHISING IN SINGAPORE Success of Franchising Franchisors’ Improvement in Average Monthly Sales since Franchising

36. FRANCHISING IN SINGAPORE Franchising helps existing businesses do better. Franchisees’Response to the Statement: “ Joining a Franchise has Helped Me to Do Better than Before.”

37. FRANCHISING IN SINGAPORE Business Performance Percentage Increase in Average Monthly Sales for Franchisees who were Previously Running a Business in the Same Trade

38. FRANCHISING IN SINGAPORE Business Performance Percentage Increase in Average Monthly Net Profit for Franchisees Previously Running a Business in the Same Trade

40. Thank You Tan Tee Jim, S.C . [email_address] Kuala Lumpur, July 2008