1.0 INTRODUCTION
According to Ekelund (2014, p. 76-77), the franchisor-franchisee relationship is far more complex than the traditional supplier-retailer relationship. First, the franchisor retains the ownership of the brand or the trademark, which the traditional supplier did not over its products. Second, the relationship is subject to conflicts, directly arising from the independent power of the franchisor and the franchisee as well as the interdependence of both. These factors create a flash point in the relationship, which if not effectively managed can destroy the relationship and economically impact on each other as a consequence of the relationship.
In this ...
Franchisor College Essays Samples For Students
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Abstract
Franchising is gaining popularity as an important tool for international expansion. It benefits both the parties involved in franchising. The purpose of the paper is to highlight the importance of franchising and understand the factors that affect franchising decision of businesses. While a franchisor uses this tool as a method of distribution and international expansion, a franchisee uses it to reduce business risk. The factors affecting franchising decision differ for a franchisor and a franchisee. The franchisor looks at its decision of franchising with a more global angle through analysis of the global market and legal scenario, a franchisee has a local approach to make an investment ...
The franchise business model is based on a successful business model of another firm. The franchisor gets to avoid the liability of building other stores and further investment to continue the distribution of its goods and services to its consumers while the franchisee benefits from the success of the franchisor (Santa Clara University, 2016). The franchisee makes more profits than a direct employer because a franchisee has direct shares in the business venture. KFC is an example of a business that has adopted the franchising business model. The company which is global operates on both company-owned and franchises across ...
Through franchising, a business can achieve several benefits such as the expansion of the business territory. As is the case with any modern business, franchising has its own advantages and disadvantages. Several companies enjoy huge profits through franchising their products worldwide.
The first advantage of franchising your business abroad is that the business will spread to new markets. This is because new customers will have access to the company’s products. This is possible even if the franchisor lacks the funds to expand to the new markets. The franchisee meets this end of business by paying the fees and ...
Business Forms Worksheet
This is a form of business that is formed and managed by one person. The business entity is the easiest business to establish. The proprietor bears the sole responsibility of all activities and challenges that accrue to the business (Keenan & Riches, 2007).
Advantages
1. The owner enjoys all the profit that accumulates from the business activities
2. It is the easiest business entity to establish because it requires few legal documents to start a business. The business and the proprietor are one entity i.e. the owner is the sole decision-maker.
3. The proprietor enjoys maximum privacy and can manipulate the ...
Business case scenario analysis
Abstract
The successful enterprise Three Guys Garage is facing challenges for expansion, succession planning, and the use of innovation in their services. Growing the brand can result to the loss of operational and service quality control while not doing so will limit TGG’s sustainability in the future. Growing the brand also provides enormous opportunities for their apparent successors to gain experience in running a large enterprise. Franchising the TGG brand provides at least three advantages in the expansion and planning fronts: easy access to better managerial talents; easy access to expansion capital; and significantly minimized risk exposure. However, ...
In the current context of globalization of many markets it is especially important to understand the importance of franchising in business development. Small business owners and companies are combined with large transnational corporations. In the face of strong competition in the market that gives a lot of advantages.
The main feature that allowed the purchase of a franchise is to make your business known and recognized from the outset. Large retail chains and restaurant brands are already known to the general public. It often happens that a novice entrepreneur has accumulated a certain amount of money, enough to invest in starting their own ...
Turkey is an exciting destination for multinational enterprises that seek to expand business to new a global marketplace. What make it more attractive are its economic and structural reforms initiated after it experienced financial meltdown in 2001 (Yaprak 29). Besides the country has a stable political environment, which creates robust traction for foreign direct investments particularly after it went through a hiatus for over 18years. Additionally, it has comparative advantages invigorated by its geographical location and its membership in the European Union. The custom union enables Turkey to allow globalized companies operating in it to circulate produced products within ...
Discussion Question 1
Selling through a store front or online presents several benefits and limitations. The advantage of selling online as compared to selling through a store front is that it is much cheaper because there is no need to pay rent and utility bills. The expenses related to online selling are web hosting, technical support with regards to web design and payment options. On the other hand, a retail store is a better distribution outlet for high-value products such as jewelry or designer clothes because the customer can better appreciate it. One other benefit of an online store is the extensive customer reach that it ...
Introduction
Businesses are meant to earn economic profit and to expand comprehensively. It is more than important for a business to keep their expansionary level high and effective in order to become economically prosper and strategically active, as well. Businesses are of two different kinds, which are Small business and large businesses. Small businesses are those businesses which have certain recognition in a given city or area, while large businesses have extensive roots in different parts of the country.
In the current economic situation and outlook, wherein every another person is cursing and accusing their job the mindset towards opening businesses ...
A monopolistic market structure is one in which there are many sellers or sell similar products. These products are however not identical. Therefore in this market structure is an advanced level of differentiation of products from one firm to another. In this market, there are many firms which offer products to many buyers. Since the market is composed of many sellers, each of these firms is entitled to a certain percentage of the total market share. It has been noted that this market is composed of many sellers. What is makes the market structure different from the perfect competition market ...
Margaritaville
Margaritaville encompasses a business concept that creates not only fun but also excitement to customers. The founders of the business have invested in two main ventures i.e. in restaurant and the entertainment industry. They seek to provide exciting products and services to their clients. Its growth has been geared by the business’ philosophy-escape lifestyle which has led the public to recognize its restaurants as ‘Authentic American Tropical Escapism Restaurant’ (World Franchise Centre, 2012, p. 1). The franchise has been operational for the last two and half decades.
Since its launch 25 years ago, the franchise has developed several lifestyle consumer ...