...CHAPTER Franchises and Buyouts What comes to mind when you see the word franchise? For many, it’s a fast-food restaurant. For some, it’s the standardization of America—the same product or service wherever you go. For still others, it is a business model with franchisor rules that must be followed. For Dina Dwyer-Owens, however, it’s a way of teaching “principles and systems of personal and business success so that all people we touch live happier and more successful lives.” Dwyer-Owens is chairwoman and CEO of The Dwyer Group, a holding company of seven service-based franchise organizations: Aire Serv, Glass Doctor, Mr. Appliance, Mr. Electric, Mr. Rooter, Rainbow International, and The Grounds Guys. Founded in 1981 as Rainbow International, The Dwyer Group’s companies were providing services through more than 1,500 franchises in 10 countries by 2012. Don Dwyer, Dwyer-Owens’ father, fit the profile of an entrepreneur. In his youth, he had a newspaper route from which he © CBS Photo Archive/Getty Images In the SPOTLIGHT The Dwyer Group®: Seven Companies, One Code of Values www.dwyergroup.com After studying this chapter, you should be able to… earned over $2 million in today’s dollars by the time he finished college. Later, he bought a motivational materials franchise. His performance so impressed the franchisor that he made Dwyer part of his management team. Dwyer moved on to head Rainbow International, a carpet dyeing and cleaning company...
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...Chapter 6 Franchising and the Entrepreneur Part 1: Learning Objectives 1. Describe the three types of franchising: trade name, product distribution, and pure. 2. Explain the benefits and the drawbacks of buying a franchise. 3. Understand the laws covering franchise purchases. 4. Discuss the right way to buy a franchise. 5. Outline the major trends shaping franchising. Part 2: Class Instruction Introduction The number of franchises has grown tremendously. The number of U.S. franchises has increased consistently since the 1970s, and the continued growth since the mid–1980s documents that franchises continues to play a significant role in the U.S. and world business economy. Franchising is a business structure comprised of semi–independent business owners (referred to as the franchisees) that pay fees and royalties to a parent company (referred to as the franchiser) in return for the right to be identified with its trademark, to sell its products or services, and often to use its business format and system. As presented in Figure 6.1: The Franchising Relationship on page 196, the connection between the franchiser and the franchisee is a unique and often a highly structured and defined business relationship regarding: • Site selection • Design • Employees • Products and services • Prices • Purchasing • Advertising • Quality control • Support Types of Franchises ...
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...CHAPTER 1: FRANCHISE INDUSTRY KPMG in India carried out a survey of Franchisors and Franchisees to solicit their perspectives on outlook for growth and how overall dynamics between Franchisor and Franchisee community is shaping up. The results of the survey have been broadly categorized under the following heads * Growth drivers for Franchising in India * Franchise Operating Models * Franchisee Satisfaction * Franchisee Support & Relationship Management * Challenges in Franchising * Conflict Management Growth drivers of franchising in India India, with its large population has always been a consumption story and will continue to remain so for the years to come. Burgeoning consumer class with an increasing appetite for consumption is considered as the biggest growth driver, both by franchisors and franchisees. Increase in entrepreneurial drive coupled with risk taking abilities has steered a number of people, especially those with no-specific business background, take a plunge into franchising based business models. Franchising as a business model has achieved stability over the course of time, giving new entrepreneurs increased confidence on the success of their ventures. Besides these, availability of investments and increased investment capability has also been a key factor driving the growth of the industry, especially when investment support from franchisors is minimal. Businessmen predominantly choose franchising...
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...Introduction to International Business Course project: Barriers for franchise business in Kazakhstan Prepared by Shynar Galiyeva 2013 Introduction Kazakhstan is the ninth largest country in the world, sharing its borders with Russia, China, Uzbekistan, Kyrgyzstan and Turkmenistan. Astana is the capital and Almaty is the largest city and considered to be a financial center of the country. The population of Kazakhstan is about, 16 million, which is low considering the large size of the territory. Nowadays Kazakhstan is known as a country committed to the principles of democracy and market-based economy. After the collapse of Soviet Union and over 20 years of transition period, Kazakhstan has developed into one of the leading economies within the Commonwealth of Independent Countries (CIS). This was achieved mostly because Kazakhstan is very rich for natural resources. Up to the present time, around, 160 oil and gas deposits have been discovered on the territory of the country. Business in Kazakhstan is often focused on the oil and gas sector, which has been responsible for the country’s strong economic expansion over the last decades. However, these are not the only strong sectors of Kazakhstani economy, it possesses almost a quarter of the world’s uranium reserves, holds leading ranks in reserves of barite, chromite, phosphate, copper, lead, zinc, iron ore and gold. Although, Kazakhstan’s economic growth is profoundly dependent on the oil and mining sectors...
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...An Introduction to Franchising Sponsored by: IFA EDUCATIONAL FOUNDATION © 2010 The IFA Educational Foundation. All Rights Reserved. No part of this book may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording or otherwise), without the written permission of the publisher. IFA Educational Foundation, 1501 K Street, NW, Washington, DC 20005, (202) 628-8000, www.franchise.org. An Introduction to Franchising IFA EDUCATIONAL FOUNDATION Sponsored by: By Barbara Beshel CHAPTER 1 1. 2. 3. 4. 5. An Introduction to Franchising What is a franchise? What are common franchise terms? What are the alternatives to franchising? What are the advantages and disadvantages of owning a franchise? What are the legal issues in franchising? WHAT IS A FRANCHISE? A franchise is the agreement or license between two legally independent parties which gives: • a person or group of people (franchisee) the right to market a product or service using the trademark or trade name of another business (franchisor) • the franchisee the right to market a product or service using the operating methods of the franchisor • the franchisee the obligation to pay the franchisor fees for these rights • the franchisor the obligation to provide rights and support to franchisees FRANCHISE AGREEMENT FRANCHISOR FRANCHISEE Owns trademark or trade name Uses trademark or...
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...A study on the franchising opportunities and the barriers to it in Pakistan A Proposal Submitted by: Faizan mujtaba malik TP027822 BA (hons).International Business Management In Partial fulfilment of requirements of the programme Bachelors of Arts in International Business Management Asia Pacific University of Technology and Innovation 06-11-2013 Abstract Recently countries over the world have been in a very fast economic development race with the most modern and appropriate strategies and technologies. However, franchising has been of the most successful and useful strategies that helped in the development and improvement of countries. On the other hand Pakistan is one of the developing countries that suffer from the lack of such strategies and technologies that would play the role in the economic development of the country. This report provides an overview of franchising strategy with its advantages and drawbacks. Moreover the report is about the market in Pakistan and provides a much clear image of the environmental factors and current situation in the country. The aim of research is to study the opportunities of franchising in Pakistan as well as the challenges that organizations face in the market of Pakistan specially in franchising. The research focuses on the environmental factors, political and social and cultural factors and its impact on the franchising market in Pakistan. The report also focuses on how technology and infrastructure can...
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...Types of Franchising There are three basic types of franchise; 1. Trade name franchise Trade name franchise involves a brand name such as True Value Hardware or Western Auto. Here, the franchisee purchases the right to become identified with the franchisers trade name without distributing particular products exclusively under the manufacturers name. 2. Product distribution franchise A Product distribution franchise licenses the franchisee to sell specific products under the manufacturers brand name and trademark through a selective, limited distribution network. This system is commonly used to market automobiles (Chevrolet, Oldsmobile, Chrysler) gasoline products (Exxon, Sunoco, Texaco), soft drinks (Pepsi Cola, Coca-Cola), bicycles (Schwimm), appliances, cosmetics, and other products. These two distribution systems allow franchisees to acquire some of the parent companys identity. Franchisees concentrate on the franchisers product line, although not necessarily exclusively. Since 1972, the number of product and trade name franchises has declined rapidly because of intense competition and general economic conditions. But the sales of these two franchise systems have climbed steadily since 1972. 3. Pure franchise A Pure (or comprehensive or business format) franchise provides the franchisee with a complete business format, including a license for a trade name, the products or services to be sold, the physical plant, the methods of operation, a marketing...
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...Entrepreneurship Chapter 1, question 4: What are the major benefits of business ownership? • Create their own destiny • Make a difference • Reach their full potential • Generate impressive profits • Contribute to society and be recognized for their efforts • Do what they enjoy and have fun at it! Examples: 1. You Control Your Own Destiny Many entrepreneurs consider themselves "Type-A" personalities, folks that like to take control and make decisions. In other words, owning a business saves them from having to work for anyone else. "One reason to own a small business is the ability to direct the culture of your company," says Kasey Gahler, a certified financial planner in Austin who left a big company to start his own business Gahler Financial three years ago. "When you're in the driver's seat, you are making the decisions on how best to steer your company into the future. This might be overwhelming for some and one must know when and how best to delegate. However, when you are able to make your own decisions about how best to operate day-to-day, this leads to creating a culture, a brand and an organization." 2. You Can Find Your Own Work/Life Balance One of the most oft-cited benefits of owning your own business is the flexibility that comes with it, whether that be working from wherever you want, setting your own hours, wearing a nightgown or even sitting next to your pet while you work. "I get to carry a knife, drive a pickup truck and hang out with my...
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...Kelly | McGowen | Williams C en ga Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States ge Le ar ni ng BUSN BUSN BUSN 6, 6th Edition Kelly | McGowen | Williams © 2014 Cengage Learning. All rights reserved. Senior Project Development Manager: Linda deStefano Market Development Manager: Heather Kramer Senior Production/Manufacturing Manager: Donna M. Brown Production Editorial Manager: Kim Fry Sr. Rights Acquisition Account Manager: Todd Osborne en C Printed in the United States of America ga ge Le Compilation © 2013 Cengage Learning ISBN-13: 978-1-285-88034-1 ISBN-10: 1-285-88034-X Cengage Learning 5191 Natorp Boulevard Mason, Ohio 45040 USA ALL RIGHTS RESERVED. No part of this work covered by the copyright herein LL RIGHT th repro reprodu ted, s may be reproduced, transmitted, stored or used in any form or by any means electro graphic, electronic, or mechanical, including but not limited to photocopying, scann di recording, scanning, digitizing, taping, Web distribution, information networks, a or information storage and retrieval systems, except as permitted under o t Section 107 or 108 of the 1976 United States Copyright Act, without the prior writ written permission of the publisher. pro For product information and technology assistance, contact us at Cen Cengage Learning Customer & Sales Support, 1-800-354-9706 For permission to use material from this text or product, submit...
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...discussions of strategic analysis, specifically both internal and external environmental analysis (Chapters 2 & 3 in Dess, Lumpkin & Eisner); and strategic formulation, specifically business level strategy (Chapter 5), with an additional focus on strategic implementation, specifically entrepreneurial development (Chapters 12 & 13). The case is written in a style that overviews the situation but intentionally avoids guiding students through any analytical framework or specific application question. In so doing, it provides the instructor with the latitude to adjust class discussion and thereby accommodate the abilities of a wide-range of students. Specifically, the instructor can invite students to reason through a situation where uncertainty exists and speculation may be required. In terms of environmental analysis, this case connects a discussion of external environmental forces and Porter’s five-force model, and how such forces affect the opportunities for growth in an industry (referencing concepts covered in Chapter 2). In terms of internal analysis of the firm, (referencing Chapter 3), the value-chain and resource-based VRIN analysis provides a case for how distribution challenges across the value-chain activities could affect value. The stakeholder perspective can also be analyzed using the balanced scorecard. As a business-level strategy case, (referencing concepts covered in Chapter 5), this case is very well suited to discuss the Porter’s generic strategies, the advantages...
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...discussions of strategic analysis, specifically both internal and external environmental analysis (Chapters 2 & 3 in Dess, Lumpkin & Eisner); and strategic formulation, specifically business level strategy (Chapter 5), with an additional focus on strategic implementation, specifically entrepreneurial development (Chapters 12 & 13). The case is written in a style that overviews the situation but intentionally avoids guiding students through any analytical framework or specific application question. In so doing, it provides the instructor with the latitude to adjust class discussion and thereby accommodate the abilities of a wide-range of students. Specifically, the instructor can invite students to reason through a situation where uncertainty exists and speculation may be required. In terms of environmental analysis, this case connects a discussion of external environmental forces and Porter’s five-force model, and how such forces affect the opportunities for growth in an industry (referencing concepts covered in Chapter 2). In terms of internal analysis of the firm, (referencing Chapter 3), the value-chain and resource-based VRIN analysis provides a case for how distribution challenges across the value-chain activities could affect value. The stakeholder perspective can also be analyzed using the balanced scorecard. As a business-level strategy case, (referencing concepts covered in Chapter 5), this case is very well suited to discuss the Porter’s generic strategies, the advantages...
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...McDonald's four types of control mechanisms (ways controls are applied) used in the “McDonalds” organization. 1, Administrative rules and policies: Code of Conduct for the Board of Directors at McDonalds; The members of the Board of Directors of McDonald’s Corporation acknowledge and accept the scope and extent of our duties as Directors. We have a responsibility to carry out our oversight responsibility in the interests of all McDonald's shareholders, within the scope of our authority and consistent with our fiduciary duties and our governance documents. The Board of Directors has adopted the following Code of Conduct and our Directors are expected to adhere to the standards of loyalty, good faith, and the avoidance of conflict of interest that follow: Board Members will: Act in the best interests of, and fulfill their fiduciary obligations to, all McDonald’s shareholders; Act honestly, fairly, ethically and with integrity; Conduct themselves in a professional, courteous and respectful manner; Comply with all applicable laws, rules and regulations; Act in good faith, responsibly, with due care, competence and diligence, without allowing their independent judgment to be subordinated; Act in a manner to enhance and maintain the reputation of McDonald’s; Disclose any potential conflicts of interest, including those that they may have regarding any matters that may come before the Board, and abstain from discussion and voting on any matter in which they have or may have a...
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...Ch.2 * What is an economic system? Business organizations exist in an economic system or environment that provides employment for workers, pays taxes to as many as three levels of government (in Canada), and supports many charities. The system in which sellers and buyers can exchange goods and services is called a market. The local farmers market is a market. Farmers bring their fruits and vegetables to a single location to attract customers to that location. A stock exchange, like the Toronto Stock Exchange, is another example of a market. This is a market in which people can buy or sell shares. This chapter will review how the different countries of the world are divided between those that follow the concepts of command economies - socialism and communism - and those that have adopted a market economic system - capitalism and a mixed economy. The pursuit of social, economic, and political goals; the treatment, use, and motivations of the workforce; and market dynamics are different under each of the two approaches. Many countries have changed their economic systems. The strength of an economic system, or the economy overall, has a major impact on business. Canada enjoys a mixed economy. As such, economic concepts such Gross Domestic Product (GDP), productivity, unemployment rates, inflation, Consumer Price Index (CPI), and the overall business cycle, need to be carefully and continuously monitored, understood, and analyzed. Learning Goals Key Concept/Learning Goal...
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...Name: ___________________________ Test 3 Chapter 1 1. The pursuit of organizational goals efficiently and effectively by integrating the work of people through planning, organizing, leading, and controlling the organization's resources is called A. employment. B. management. C. career planning. D. competitive advantage. E. strategic planning. 2. A group of people who work together to achieve some specific purpose is/are called A. managers. B. employees. C. a team. D. an organization. E. a community. 3. To be ____A_________ means to use resources wisely and cost-effectively. A. efficient B. effective C. multiplied D. ethical E. innovative 4. To be ____B__________ means to make the right decisions and successfully carry them out to achieve goals. A. efficient B. effective C. multiplied D. ethical E. innovative 5. The scarcest, most valuable resource in business is A. a highly stable technology. B. a young workforce. C. skilled effective managers. D. financial capital. E. government support. 6. Which of the following is a payoff of studying management as a discipline? A. You will understand how to choose target markets. B. You will understand how to relate to your family much better. C. You will understand how to market the organization. D. You will understand how to advance your career quickly. E. You will understand how to manage yourself in the workplace. 7. The ability of an organization to produce goods or...
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...become Fred's partner, reached a business relationship will change the landscape of the fast food industry. Connecticut Bridgeport first store opened in August this year, 1965. Then, they set a goal of 32 stores open for 10 years. Fred quickly learned the basics of doing business, as well as a producer of the importance of excellent service, high quality products and provide excellent customer service, maintaining low operating costs and looking for a great location. These early lessons from around the world continue to serve as the basis of a successful restaurant Subway. SUBWAY, the Franchise By 1974, he owned and operated 16 submarine sandwich shops in Connecticut. Realize they will not achieve the target time of 32 shops, they began franchising, subway ® brand to launch a period of significant growth and continues to this day. A Fresh Future Today, the subway ® brand is the world's largest submarine sandwich chain with more than 37,000 worldwide locations. We have become the main choice of people looking for a quick, nutritious food, the whole family can enjoy. From the beginning, Fred has a clear vision of the future metro ® brand. We continue to grow, for customer service, he guided us warm fresh delicious, custom-made sandwiches. 2.2 Market Situation of the Company The Analysis Strategy The main objective of the consumer chain Metro is ranked first restaurant and in every market, subway services. In...
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