What is franchising?
Franchising is an established business expansion strategy that has proven to deliver rapid growth – with arguably reduced risk. Some stellar examples include MacDonald’s, Singer and Coca Cola. 1992 ETYRES; 1994 CHIPSAWAY; 1997 Mail Boxes Etc; 2009 ORANGE.
What are the three factors that make franchising appropriate?
three factors make franchising appropriate 1)Valuable system to sell -- the business is based on a proven system 2)Transferable concept -- the system can be reduced to a set of operating rules that can be codified
What is the primary reason a franchisor retains some control over?
According to this lesson, what is the primary reason a franchisor retains some control over operational decisions? The franchisor needs to protect their most valuable assets, their name and reputation. The franchisee is technically competing with the franchisor. They don't trust the franchisee to be successful.
What is the difference between product franchising and business franchising?
product franchising distribute products under a corporation's name ex: Gas stations, Tire stores, John Deere Business format franchising use a corporation's brand name and operating system to serve a local market ex:GNC, Marble Slab Creamery, Subway, Motels
Why does a franchisor retain some control over operational decisions?
According to this lesson, what is the primary reason a franchisor retains some control over operational decisions? answer choices. The franchisor needs to protect their most valuable assets, their name and reputation. The franchisee is technically competing with the franchisor.
What is a business strategy?
A business strategy based on intimidating, as close as legally possible, a larger more successful company. A small business structure wherein the owner puts up their own capital and has complete control over all operational decisions.
Does franchising double royalty?
The franchisor will double the royalty fee.
What is franchising strategy?
Franchising - a strategy for growth. Entrepreneurs who are looking at innovative growth strategies may consider the possibility of “franchising” their business. The following outlines some of the issues and decision points associated with embarking on such a strategy. The list is not exhaustive and is not a substitute for professional advice, ...
What is franchising?
Franchising is an established business expansion strategy that has proven to deliver rapid growth – with arguably reduced risk. Some stellar examples include MacDonald’s, Singer and Coca Cola.
What does a franchisee receive in return?
In return, the franchisees would typically receive: national and/or regional marketing support (including possibly leads and opportunities) Depending on the type of franchise, the arrangement may also include provision of product, raw materials or supplies. Franchising is not appropriate for all types of company.
What is the core of a successful franchise operation?
Brand: The core of a successful franchise operation is the brand . Franchisors must have a brand that people wish to buy and be associated with. The brand should be recognisable, respected and appropriate for use across different geographic territories. There should be a strategy for continued investment in the brand.
What is a personal based business?
a “personality based” business that relies on customer loyalty to the individual and not the brand
What is a business process?
Business Processes: A business that has developed quality, consistent and documented processes for creating or delivering its products and /or services.
Can you sell a concept to a franchisee?
Proven Track Record: Although not impossible, selling a “concept” to a potential franchisee is a more complex task. Desirable franchisees will likely want to see a proven product or service delivered to a proven market before investing their money.