[Institution affiliated]
Introduction
A franchise is a go ahead or authorization that has been given to a group of people or an individual by a company or organization to sell the goods and services it has to offer in a particular way (Mendelsohn, 2004). Franchising is a very much well known business and commerce procedure that joins or rather brings together the brand name owners of a recognized commodity with another business, product, or service (Mendelsohn, 2004). The system of franchising is well and readily embraced by the small businesses and upcoming companies to have power and authentication to grow at a faster rate with the assistance of the strong name that backs it in its day-to-day transactions as a company or a business.
Discussion
In the revolution of the world in the direction of globalization, fast food industries have been developing drastically over the years. Many people are working extra hard and more hours due to the high living standards and the expenses that have to be settled daily. This makes the society prefer the need for the quick food services as compared to the traditional full service restaurants. An example of these fast foods companies that has really excelled is the Blimpie. This fast food company has grown drastically since the time it was developed by three friends and is now a household name. The first store was opened in 1964 and has never stopped ever since then.
The society has really been pushed into having very little time in their hands and, therefore, do not see the need to sit down for the full service meals. This, therefore, means that the fast food franchise is a growing venture and thus making it very popular amongst many people in the world today. The franchising, therefore, is even more popular because, as they say, two is stronger than one; franchising gives the many businesses an opportunity to be the best they can be and have a backup to the transactions that they go ahead and work on. The blimpie franchise as Conza says is like a child or rather a baby. If you nature and take care of this child, then he or she will grow and become a better person in future. If enough is done to the child, the child may as well take care of themselves in future without the guidance of the parents. This is to say that the franchise can grow and nature itself to the point that it funds and runs its own self for the years to come. This makes the franchising very much popular among the companies that are coming up in the years to come (Choo, 2001).
There are critical success factors that a company or industry must consider first before taking the step of investing in the fast food industry. For any business, company or industry the most obvious factors to consider for a success are preparation, hard work, and dedication as well as discipline. The effort the business owner puts in the business will in the end determine the success of the business. For a franchise, it is best if the company considers a few factors before concluding that this is an appropriate business venture. First and for most is the culture of the people in the region (Massetti, 2007) where most fast foods make use of protein giving meals as well as vegetables like for instance pork. If a country or region has a cultural law that does not allow the ingestion of pork, then the franchise is destined to fail.
The second thing to consider is the growth in the market sustainable. This is to say that the demand of the product you are selling, say tacos, is it constant and increasing or is it decreasing drastically. If the demand is increasing, then it is also best to check if the increase is for a long term, or it is just for a short while. Then for any business to succeed you need not only skilled employees but also people who can relate well with the people to ensure that someone who comes once will definitely come again, the creation of a franchise culture. The employees must also be trustworthy and very much honest thus; the result is vivid to each employee (Massetti, 2007).
There are steps that an investor should partake before signing the franchise contract. The first step is to weigh the pros and cons of owning a restaurant franchise. These things are not new to a determined business owner for you have to find a venture that has the least possible disadvantages and maximum advantages and profits. After that, consideration and you realize that the pros are overpowering the cons then the next step is to evaluate your own financial goals and financial capability in relation to the purchasing of the restaurant franchise. This is the point where you determine the amount of money you are willing to invest in the franchise and the time and skills needed to make the plan a success (Massetti, 2007).
After doing this, the next step is to evaluate all the other restaurant franchises and determine the one that suits your desires and wants to the maximum. Find the franchise that lies within your financial lane and that which works well with the location you have selected. After that then consider the competitors of the franchise that you have set your mind to involve yourself with. This is also important because you can get yourself into a franchise that has a very strong competitor in your region thus a failure (Mendelsohn, 2004).
The next thing is to evaluate a franchise’s disclosure documents before you decide to buy it. This is good for you get to understand fully the thing you are getting yourself into then consult your accountant and bank to see how this can work. The accountant will help make the plans very much clearer. Sign the contract and start working as you check the company’s standings with the better Business Bureau. Just as a reminder, it is best to always renew your contract for this does not happen automatically (Bisio, 2011).
Franchising like any other venture and strategies has its own setbacks that are associated with it. These are the pros and cons that are experienced once the papers are signed, and the business is already running. These are some of the things that a franchisee considers before renewing the contract (Mendelsohn, 2004). One of the most common advantages for all franchises is the use of the established name, and the recognition it comes along with (Bisio, 2011).
The use or association of a big brand name or company to a small company will definitely propel a company to greater heights because of the firm and very strong backup and immense support that the company gets from the big name owners. Running a company under the name of a big company is that the company will most definitely get financial support that it would not have achieved on its own thus drastic success levels (Stone, 2004).
Another major advantage is that when an upcoming industry or business is associated with a strong brand then the big company will go out of its way to ensure and assist in corporate marketing for the small company or business that they are rendering to support. Having the interest of a big-budget company in a low-budget business is a very efficient marketing tactic and the established companies have policies and regulations in place to ensure this is achieved for the upcoming company.
Another advantage is the economy of scale power that the small business gets when involved with the established companies. The bulk purchasing power that the small company is offered is a great gift because the prices of the requirements goes lower and thus a save on the smaller companies and businesses (Stone, 2004). Since some of the initial burdens on finances is catered for by the franchiser, the business is enabled the power to buy equipment, products and other requirements with ease without fear of the capital investments.
When a business buys a franchise, the franchisor offers the franchisee the training and management of the facilities that will be given to the small business. The established company that has invested on the small company must vest their interests in the success of the small company; therefore, the franchise providers will ensure that the upcoming company is up to speed with the details of the business. They also want to know that their money and facilities are used properly (Stone, 2004).
On the lines of disadvantages, the upcoming company loses all its say in the development of the company (Stone, 2004). The involvement denies the small business owner the power to make decisions without consulting the larger business. This hinders creativity completely for any decisions have to vet, and some are declined leaving the business owner to become a puppet of the larger business or company. Franchising, therefore, limits the owner’s authoritative nature and thus a limitation of franchising.
Another disadvantage is the terms and conditions that the franchise owners come with. These terms and conditions may be or are in most cases very much biased to the other. An example of such terms would be that the company declares that the ownership of the smaller business is given to them, like 51% of the shares of the company. It is very hard to get a deal that also safe guards the interests of the smaller company or rather the interests of both parties (Stone, 2004).
Another disadvantage is lots and lots of time is invested in the process of searching a favorable franchise for an upcoming business or company. The search requires numerous researches that are complete, thorough and to the point before a decision is made or a conclusion made. It is also at this point that the business owner decides if the franchise will work for the upcoming business or not and the reasons why (Stone, 2004).
Another disadvantage that is closely linked to the searching process is the numerous meetings that the investor and the new or small business will have are usually very much intense, and the discussions may turn out to be very heated and very much painful that disputes may arise from them. These disputes are solvable; but in some cases, they may end up making the deal signing process not successful thus a very big disadvantage (Stone, 2004).
With these advantages and disadvantages, which we have discussed in the section above it would be appropriate to say that Blimpie restaurant and sandwich chains would work well in Thailand. This is because the kingdom of Thailand is well known for its embracing of tourism activities (Aryeetey, 2003). This, therefore, implies that the country has numerous tourists in the country at a time. Statistics say that as at 2007, the GDP of the kingdom of Thailand had a 6.7% contribution by the tourism sector alone. If that is not enough, the times magazine, on July 1 2013, stated that Bangkok is the most visited city in the world by the 2013 Global Destination Cities Index.
This, without say, is a clear indication that the country has a large opportunity to have the introduction of the sandwich restaurant. The tourists would like to have a feel of the food that they eat at home and; therefore, they will be very much interested in the sandwiches. Introduction of the blimpie sandwich and restaurants in Thailand would be very beneficial to both the franchisor and the franchisee (Judd, 2008).
Some of the benefits are that the country is in its development stay and; therefore, the inhibitors do not have, as much time in their hands thus the quick service idea would work best for them. Furthermore, the franchise is one of the best in the lines of the fast food industry and therefore, will have a good reputation in the country. The returns will be high as well and; therefore, very much beneficial (Judd, 2008).
Blimpie sandwich and restaurants would be very much successful in Thailand for the strong brand name as well as it being renowned for having and offering only the best products for more than forty years. This means that the company has a depth of understanding in the fast food industry and, therefore, they will invest and put there everything in the propelling of the excellence of the franchise. The success will also be brought about by the company’s constant forward motion. The company is seen to have new ways every now and then of making the franchise much better and competitive. With this, the franchise will always be aiming for greater heights and thus the success may be above the normal lines.
Kingdom of Thailand is referred to as one of the greatest success stories by the World Bank. It is one of the newly industrialized countries with its financial year starting in 1 October to September 30 (Aryeetey, 2003). It has had an economy that has been growing constantly over the years. Its economy has grown by a drastic 6.5% as at 2013 with a headline inflation of 3.02%. It is ranked 32nd in the world and the second largest economy in Asia alone. This is an indication that the country is on a most definite upward track and is not heading down anytime soon. An investment by the franchise in the country would be a good deal and would most definitely be very beneficial.
The growth experienced in the country also means that the country is ready to invite any investors that would present themselves in the Kingdom as they are working on the lines of becoming better. This would mean that the government would offer or rather render some assistance to the franchise as they venture into the country to do business. With the government on your side, things tend to be slightly easier (Aryeetey, 2003).
The involvement of the state authorities may also be troublesome for they may also have their benefits included in the returns. This means that they will also want a piece or a section of the returns that will be received in the process of doing business in their country. Their demands may be very high thus strains the franchise. This strain may cause the franchise considering their involvement in the Kingdom of Thailand.
After critically analyzing the existence of the company in the country, it would be very fair to say that it could survive and be a very great success in Kingdom of Thailand. It is a developing country that will aid in the development of the franchise in its Kingdom and the members of the franchise will benefit immensely. The planning and success factors are the once that should be taken into account and the progress will be uncontrollable.
The promotion of most fast food companies and industries works best with the use of social media. Social media gets to all people of all ages and is worldwide only burred by the absence of internet connection. This, therefore, says that the use of social media is very much advantageous. Some of the advantages include the fact that the business owners are able to connect with the current customers’ real time. This means that they can make requests and help by suggesting improvements in the business (Mathews, 2011).
Another advantage of the use of social media is that the company can get new customers (Mathews, 2011). This is because the company is seen on the different social sites and thus other people who are friends or like the products pages will also help in advertising. When they see them, they may be interested to get them and thus the company will receive new customers due to their use of the social media. If that is not enough, there is the advantage of having an open communication between the company and the customers. This means that the frequently asked questions by the consumers may be answered as soon as they ask them, therefore, making the customers feel like they are taken seriously (Mathews, 2011).
Conclusion
It would, therefore, be best for the franchise to make use of the social media to advertise the new upcoming business. This would first start by the established company adding the new small section that is introduced in their list of franchises and locations in their website. This means that those who access the franchise’s website will see the new stores. The second thing that should be done is to ensure that the new business has opened pages in the different social sites across the world. This would help it be seen to most people and have some advertisements made that pop up now and then as a person uses their pages. With this, the business will be known in a short time, and it will be well-known and minting money for the franchisor and the franchisee in no time.
References
Aryeetey, E., & International Conference "Asia and Africa in the Global Economy". (2003). Asia and Africa in the global economy. Tokyo: United Nations University Press.
Bisio, R., & Kohler, M. (2011). The educated franchisee: The how-to book for choosing a winning franchise. Minneapolis, MN: Bascom Hill Pub. Group Ltd.
Choo, S. (2001). Critical success factors of international franchising: Case studies of foreign franchisors in Asia.
Massetti, R., Lulu.com., & Franchise Builders (Firm). (2007). Is your business right for franchising?. Raleigh, N.C.: R. Massetti.
Mathews, J., DeBolt, D., & Percival, D. (2011). Street smart franchising. Irvine, Calif.: Entrepeneur Press.
Mendelsohn, M. (2004). The guide to franchising. London: Thomson.
Spinelli, S., Rosenberg, R., & Birley, S. (2004). Franchising: Pathway to wealth creation. London: FT Prentice Hall.
Stone, P., & Stone, P. (2004). Setting up & running your own business: The complete guide to succeding with a small business. Oxford: How To Books.
