...necessary for guiding business practices. Due to this reasons, the franchise systems were created as a mode of expanding businesses. Most of business minded people were selecting the franchising business as their way to expand their profits as well as their wealth. The concrete reason why they were selecting this kind of business is due to systematic management and cash flow which is provided by the franchisors. However, in these competitive markets, they still have their own weaknesses and might affecting failure of the franchising business itself. The weakness is depends in various aspects including surrounding cultures, afford abilities of the consumers, and etc. Therefore, the franchisors need to do a certain research in order to prevent their business from getting collapsed due to their own weaknesses and any surrounding problems. The remainder of this paper is structured as follows. Section A is regarding demographic, geographic and psychographic of the respondents involved throughout the research. Section B is examines the factors which causing the failure of franchising business in Malaysia. And on the last section examines the strategies which can be taken in order to improve franchising business in Malaysia. 1.1 Problem Statement. Recently, Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob, from his speech which is published on 31st March 2010 in Business Times, attribute that 14 franchise businesses are closing...
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...Background KFC began with Colonel Harland Sanders. He discovered his penchant for cooking when he was only 9 years old. Through the years he grew up to become a personage the world knows as Colonel Sanders, founder of KFC. He reached celebrity status in 1952, when he decided to franchise his famous Kentucky Fried Chicken recipe blends of 11 herbs and spices to the rest of America. By the early 70's, that special recipe reached Malaysia. Today, KFC Malaysia continues to serve finger lickin' good, succulent pieces of chicken. The flavourful blends of 11 herbs and spices give KFC's delicious aroma. With the chicken's natural juices sealed-in, leaving a special mouth watering taste that cannot be replaced. KFC prides itself as a fast-food restaurant that give customers great tasting chicken with a selection of home-styled side dishes and desserts to make a wholesome, complete and satisfying meal. KFC Malaysia The first KFC restaurant was opened in 1973 on Jalan Tunku Abdul Rahman. Today there are more than 500 KFC Restaurants nationwide and still counting. Great tasting chicken has become synonymous with KFC; and has been enjoyed by Malaysians ever since. In fact, KFC Malaysia has developed a distinctive Malaysian personality of its own. ESPECIALLY FOR MALAYSIANS We are an establishment that is run by Malaysians and managed by Malaysians; we took it upon ourselves to create a selection of food that would make Malaysia proud on the international scene. Kentucky...
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...Finalized Business Plan for Alberto's Mexican Food Generic Strategy Alberto’s Mexican Food is the largest and most successful authentic Mexican Food franchise chain of restaurants on the West Coast. Found in 1975, and today has more than 90 national locations spanning through California and Utah. There is currently no authentic Mexican Food restaurants in my hometown of New Jersey with a business model like Alberto’s Mexican Food offers. For residents of New Jersey their only two options for Mexican Food is Taco Bell or small, sit-down type of family owned businesses which are few and in-between. Being from New Jersey and living in California for over 20 years it was obvious to me how authentic Mexican Food representation was lacking in my home state of New Jersey and it was my goal to change that by creating the first Albert’s Mexican Food restaurant in New Jersey. Source of finance will be raised through family members who are also interested in this business and want to see it succeed. Initial startup costs are expected to be between $319k and $534k (entrepreneur.com, 2014). The business will be located in Union City, New Jersey which boasts the largest Hispanic community in the state at 84.7% (nj.com, 2014). This Alberto’s Mexican Food will have 12 employees to run the business. Two managers, four cooks, four cashiers, and two dedicated drive-through delivery cashiers. More or less employees will be evaluated periodically based on the needs of the restaurant...
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...What you need to know about: Competition issues in franchising supplier arrangements Franchisors often require franchisees to purchase goods or services from particular suppliers. This guide helps franchisors and franchisees understand the ACCC’s role in reviewing these arrangements. Franchise supplier arrangements and the Act Franchising supplier arrangements that limit the suppliers from whom franchisees may purchase the goods and services required to operate their businesses may raise competition issues under the Competition and Consumer Act (the Act). A franchisor that requires franchisees to purchase goods or services only from a particular supplier or a list of nominated suppliers may be engaging in ‘third line forcing’. Third line forcing will breach the Act even if the conduct will not harm competition. What is third line forcing?Third line forcing occurs where a supplier (e.g. a franchisor) supplies goods or services (e.g. franchising services or the right to become a franchisee) on condition that the customer also acquires goods or services from another person or business (unrelated to the supplier). | Some franchisors also: set objective quality standards and allow individual franchisees to source goods or services from any supplier that meets those standards, or require franchisees to purchase goods or services from the franchisor or a related company. These arrangements will only raise concerns under the Act if they have the purpose or likely effect...
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...Mauricio Barajas Jaimes ID: 000208124 March 8, 2015 INVESTIGATION ON FRANCHISES PRODUCT FRANCHISE: HUSSE http://www.franchise.com/franchise/pet-animal/mobile/husse-arizona/company-information.cfm Characteristics: local pet food Delivery Company with the same benefits as a global company. Headquartered in Stockholm, Husse is the European leader in the home delivery of dog, cat and horse products under the Husse brand. How does the brand work? * You work from home and decide for yourself how you spend your time. * Deliver premium and super premium products directly to the customer’s door. * Generate new customers through local farmers markets, door to door, dog / cat or horse shows, ewspapers, flyers, visiting breeders, social media, sponsor events or other activities. * Administrate your orders and customers via a customized intranet system. Total Investment Range: $11,250 - $25,000 dollars Initial Fee: The franchise fees start as low as $11,250 Area Coverage: Today more than 750 franchisees and distributors operate a Husse business in more than 45 countries.Take advantage of Husse's efficiency, low costs and minimal administration. Requirements from the Franchise: The requirements for getting started are: Invest in the franchise license, Invest in a red car according to our guidelines, Complete the initial training. (2 full days) and that most franchisees store their stock in a spare room or climate controlled basement/garage. An...
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...Type of Business Subway® The main activities of Subway® are that they sell mainly sandwiches to their customer to fulfil the customers need for food. The Subway® franchise began in the USA in 1965 and now has 32,774 outlets in 91 countries, also in most years 70% of new Subway® franchises are sold to existing Subway® owners. Subway® is owned in a private sector, as the business started as a partnership between Fred DeLuca & Dr. Peter Buck and they opened three stores before the Subway® outlet began franchising. Subway® what to make a profit, as when the business first opened it was so that Fred DeLuca could pay for his university tuition, and the partnership turn the business to a franchises so that others could succeed in their own business venture. The industry sector that Subway® is tertiary as they sell mainly sandwiches to people that use the business. Products Subway® has a low fat menu which is popular with customers all around the world, and Subway® allows their customers to add the ingredients that they what into their sub, also other product includes drinks & snacks. The subs, snacks & drinks can be combined together into one deal to give their customers a cheaper offer on their products. Purpose The reason that Subway® exist is that Fred DeLuca was looking for a way to make enough money to pay for his university tuition and the solution came at a BBQ during a conversation with a family friend, Dr. Peter Buck, who suggested to Fred that he open...
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...public to invest into the business with an IPO offering in 2005 that generated over $154million in new equity capital. The inflows of such magnitude placed the burden of performance on the management to generate enough returns for the stakeholders to justify their stakes in the business. The executive president (Business Development), in person of Dan Hannah recommend the idea of establishing presence across the frontiers by selecting some prime target countries via new franchises, the countries that attracted the management interest are Canada, Japan, Belgium, and the United kingdom as their capita beef consumption, populations, urbanization rates and affinity with USA are in agreement with management corporate strategy. The company has economies of scale like technical know –how, support mechanism , expertise in the business of steaks being deployed towards the franchise management , the probability of the franchise and the expansion decisions going down the drain is almost nil. Key Assumptions: The management is looking forward to revenue and company through establishing presence in the national and international market as the most strategic steps to undertake. Criterions: The most important for chosen a country is the revenue growth, volume of beef consumption and strict usage of USA produced prime beef. The other contending issues with location of franchise is in the area of quality well to -do population figures that can drive the business and their must not be any...
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...the case: McDonald's gave Dayan an exclusive franchise to operate McDonald’s restaurants in Paris, France. McDonald’s required Dayan adhere to all quality, service, and cleanliness standards set by McDonald’s, Dayan agreed. The parties made an agreement which stated the reason for Dayan must maintaining QSC standards was that a “departure of restaurants anywhere in the world from these standards impedes the successful operation of restaurants throughout the world, and injures the value of [McDonald’s] patents, trademarks, trade name, and property.” Dayan promised he would not in violation of the standards unless he got prior written permission from McDonald’s. But McDonald’s found Dayan violated these standards for several years, so it wanted to terminate the franchise. Then Dayan filed a lawsuit to enjoin the termination. Identifying the client’s problem： McDonald’s rendered Dayan an exclusive franchise, and required Dayan comply with QSC standards; Dayan agreed. McDonald’s found Dayan in violation of these regulations, and sought to terminate the franchise; Dayan filed a lawsuit, wanted to enjoin the termination and one of the justifications was that McDonald’s was obligated to provide him with the operational assistance necessary to enable him to meet the QSC standards, but it did not. What things McDonald’s should do in order to avoid such kind of cases. Four alternative courses of action： 1 background check for franchise owners; 2 set McDonald’s flagship store, organize...
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...Background on the Marble Slab Company: Marble Slab Creamery founded in 1983 in Houston, Texas. It was an independently owned and operated franchise around the United States, in 2003 Cream Company was given the rights to license and develop Mable Slab franchises in Canada. In Feburary 2007 Marble Slab Creamery was purchased by a company called NexCan Brans Inc. Mable Slab nearly 400 stores worldwide and its main product was Ice Cream. Executive Summary: P. Thomas has recently acquired herself a franchise of Marble Slab Creamery. Penny Thomas had set herself the goal of making $400,000 in revenue within the first year of business, Penny plans to invest $10,000 from her long term loan into marketing and really promoting the opening of her franchise of Marble Slab Creamery. To achieve the goal of $400,000 in a year Penny needs to sell at a dollar amount of $1,096 daily, assuming the average sale is $5.20 per product, this means on a daily basis Penny would need to sell on average 211 products. ($400,000/365days = $1,096 per day) ($5.20 X 211 products = $1,097.20) (Exhibit 1) To create a flourishing business, the owner has to select a target market that they want the advertisement to appeal to, then they must determine an efficient way to reach out to that market. For advertising her franchise Penny should try to focus on using Pattison Outdoor as it is the most efficient way to reach mass amounts of customers covering a larger target market. Penny could purchase multiple street...
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...is a very big firm and to spread its business with franchises. To enter in China it was the best way. It is the best way of licensing and entry in a new country. In this company has given a trademark fro their promotion and training.” (International Business Environment and operations 11th Edition, 2009). 1. Entry with franchisee system:- Before subway enter in the China market the franchises system was not so much famous. But because of this system any company only open one store and after that they can go for many stores. So, because of this system it is difficult to attract more customers. But China wanted to know about this system because they also want to expend some of their companies they allow to subway enter to the China by this way. The subways choose to enter in China by this way and they were able to open their many branches in the China market. It is not only save their time, but also have some good effect in the the favour of Subway. Now more and more people know about Subway. They also know how to promote their product. 2. Low cost: - The other advantage was that the Subway enters to China market with a low cost of many of their products. They know that there are many fast food companies in China so if they want to compete with them they need to give something best to their customers. So, they decided to enter to the market with a low cost and it gives them a very big profit in the China market to spread their business. 3. Speedy Enlargement:- We can...
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...A) Type of business strategy: Tim Horton’s: Low-Cost Provider Strategy Broad Differentiation Strategy Starbucks: The Focused Differentiation Strategy Best-Cost Provider Strategy B) MVV Statements Tim Horton’s • Mission: “[Their] guiding mission is to deliver superior quality products and services for [their] guests and communities through leadership, innovation, and partnerships.” • Vision: ‘[Their] vision is to be the quality leader in everything [they] do.” • Values: “At Tim Horton’s we are making a true difference for individuals, communities and the planet, everyday” “Tim Horton’s is proud to support local community initiatives that make a difference.” For example, o Free swimming/skating; timbits minor sports; community clean ups; earn-a-bike program; smile cookie program; The Tim Horton Children’s Foundation. o Sponsorships; National Sponsorships; Environmental Stewardship; Aboriginal Relations; Animal Welfare; Tim Horton’s Coffee Partnership. Starbucks: • Mission: “To inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time.” • Vision: Starbucks vision is “to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.” • Values: “Starbucks Shared Planet is [their] commitment to doing business responsibly. Working to promote a better way of helping each other and the planet – by inspiring [their] customers and partners...
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...the internet at the lowest possible cost. Despite the support and recognition from the public easyInternetcafe is currently experiencing lost profits and is on the verge of having the company be terminated all together. The original concept of the cafes was to have large stand-alone cafes with 250-600 PCs per store. After the initial internet boom phased out a decrease in profits and loss business was happening. A required re-structure of the company is required in order to keep the company operating. Currently smaller franchised stores are operating with 20-30 PCs and no staff onsite except for regular maintenance. With less involvement in store operations easyInternetcafe is able to concentrate on activities of outsourcing all non-core management activities. Some of the issues easyInternetecafe is currently experiencing are having locations operate with too many PCs for the amount of business, and having no real strategic operating plan in place for new franchise’s that are opening. Four alternatives are taken into consideration to help reduce overall costs and to help the business become successful. Through research on all four options it is determined that the best option for easyInternetcafe would be to hire Ingram Micro to help with new franchise’s opening and with the current locations that are already up and operating. Issue(s) Identification There are many different issues within easyInternetcafe and the way in which it operates. One of the main issues is the...
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...them opportunities accessibility the did not have before. Even though many smaller business are prospering from technology franchisors are moving to slow on incorporating technology in their franchises. In Jason Daley’s article "How Technology Is Revolutionizing the Franchise World" he quotes Tariq Farid saying, “I think franchising is an amazing model, but technology is not in the comfort zone of a lot of franchise leaders. They don’t understand that the point of technology is to make life easy so franchisees can focus on growing their business, not running their business.” (Daley). Many of this new found technology is being applied by some franchises like Buffalo wild wings, Chilies and other restaurant chains to cut the wait time on a table, and they see benefit and profit its bring the franchise. Not only can technology be applied in an existing franchise but even create a franchise just like Chris Jeffrey did with his online “Order Up” service that provided the consumer of local restaurants and there respective menus and the consumer would order it right of the “Order Up” site and they would send the amount to the restaurant with a commission fee that Jeffrey would receive. Wanting to expand his idea and make it bigger he “ instead offered to franchise Order Up digitally, something that had never been don before in the business world.” (Nickels, McHugh 142) Jeffery would sell a franchise for $42,000 start up and would supplied the software and training and would leave...
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...and decided to choose a cleaning services franchise. I chose the Maid Simple House Cleaning Franchise. It offers light cleaning services including dusting, mopping, vacuuming, and tidying. Generally, two employees perform cleaning services at each customer's home. I chose this franchise because it is a growing company with 30 years history. It is home-based business. That means tmore freedom, tax advantages. Maid Simple House Cleaning is helping aspiring enterpreneurs since 1979. Maid Simple House Cleaning has over 400 franchise territories in the United states and continuing to grow. Maid Simple House Cleaning offers a complete franchise package including an advertising and customer aqcuisition programm , a national sales center that handles customer scheduling, billing and payment processing, and continous training and marketing support. A Maid Simple House Cleaning franchisee will receive a license to operate a business under the trade name, trademarks, service marks, logotypes, and commercial symbols that Maid Simple House Cleaninge designate, including the service mark Maid Simple House Cleaninge, gain access to customers through Internet alliances and partnerships of Maid Simple House Cleaning, obtain otheir assistance in matters like marketing, management, human resources, products, financial planning, and services,gain access to the full array of proprietary products and services they offer, inciuding their confidentiai business information and specifications. Franchisee...
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...About Mr. Empanada “Mr. Empanada Inc. is a family owned, rapidly growing, small business that currently has one company owned location and six franchised locations. Their company owned manufacturing facility produces all the empanadas and other pre-prepared food items to be sold to the franchisees, thus assuring quality and consistency throughout the system. Additionally, they own Mr. Empanada Franchise Corp., which is responsible for selling, training and coordinating new and potential franchise locations.” The two industries that Mr. Empanada operates in are the fast casual industry and the franchise industry. “Fast casual restaurants feature limited service or self-service, average checks between $8 and $15, made-to-order food, and upscale décor.” A franchise happens when there is an agreement between the franchisor and the franchisee, which allows the franchisee to do certain activities. For instance the franchisee can sell/market the franchisor’s product. Legal/Political Environment There are many external factors that impacts a business. The one that I’m going to focus on is the legal/political environment. This comprises of laws, regulations, and policies that are put into place to control business activities. The legal/political (government/legal barriers) environment is one of the factors that helps determine the strength of one of Porter’s five forces, threats of new entrants, so it will be discussed below. Threats of New Entrants Porter’s five forces is basically...
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