...November 2012 Franchising as a Development tool Alvaro HIDALGO reunites cross sector experience in Investment Banking, Hospitality and Energy in LATAM, US & EMEA and has led Technical Assistance programs for Public Sector Reform, Public Enterprise Reform and Poverty Reduction programs in LATAM. As an Agribusiness Social Franchise Entrepreneur, founded a Start-up for the introduction of IT in small agriculture facilities to enable traceability of produce, resulting in a higher added value for small flower farms in developing countries. Currently researching the applications of the franchising model to Rural Electrification, Rural Mobile Communication and Rural Population Access to Market. The franchising model is frequently mentioned as an alternative to be considered in development projects. It is indeed a versatile development tool that can be used through Private Initiative and Public actions leading to self sustaining economic activities and Social services. Its configuration enables the integration of Capacity Building processes, implementation of Access to Market, Access to Banking and Access to Information strategies whilst prompting individual and communal/ collective initiatives, fostering financial responsibility, enabling multiple financing/funding schemes and creating incentives for growth. Yet, franchising as a development tool has been secluded to limited sectors (Health, Telecoms) and its business cycle based on successive stages -each of them requiring differentiated...
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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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...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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...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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...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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...Max's Restaurant's beginnings started in 1945, after World War II. Maximo Gimenez, a Stanford - educated teacher, befriended the American occupation troops stationed at Quezon City. Because of this friendship, the soldiers regularly visited Maximo's nearby home for a drink or two. Later on, the troops insisted that they pay for their drinks. This prompted Maximo to open a cafe, where the troops could enjoy food and drinks. The cafe initially served chicken, steak and drinks. Maximo's niece,Ruby, who managed the kitchen, created a special recipe for chicken that became an instant favorite for the GIs. Soon, the Filipino public heard about the delicious chicken-tender, juicy and crispy-and they came too! Max's Restaurant was born. Over the years, Max's Restaurant's popularity grew and it became known as "the house that fried chicken built." It has expanded in Metro Manila, Southern and Northern Luzon, Cebu, and to California and other places in the United States. It has also expanded to Canada. It will soon open restaurants in other countries as well. Max's Restaurant has established itself as a household name in the Philippines, an institution, and a proud Filipino tradition. The second and third generations of the family continue to zealously uphold the standards and traditions set by Maximo and Ruby for all Max's Restaurants. Today,dynamic individuals interested and willing to invest in the long-standing tradition of quality which Max's Restaurant offers can invest inMax's...
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...BBM 210/05 Entrepreneurship Development Tutor-Marked Assignment 1 (TMA 1 - 25%) Submission Date: 04th March 2016 before 2400 hrs Instructions: 1. As this is an individual assignment, you are advised not to share with others. 2. Please answer all the questions. 3. Please write all your answers in essay format. Do not answer in point-form unless the questions mention “List” or “State”. It is not necessary to precede each answer with an introduction and end with a summary. Proceed directly with the answer. 4. The total marks for TMA 1 is 100 and this contributes 25% towards the total weightage of this course. 5. Do remember to submit online and by the deadline. 6. Students are highly encouraged to passage their TMAs to the Turnitin system before submission, to encourage honest academic writing and it is not mandatory except for Project courses". Case Scenario 1 India a hot spot for franchising As franchisors have found wringing impressive growth rates from the domestic market increasingly difficult, they have begun to export their franchises to international markets, including those with developing economies. Indeed, franchising is ideally suited for developing economies because it allows people with limited business experience and financial resources to become part of an established business. India, with a population of more than 1 billion people, is attracting the attention of franchisors across the globe. More than 750 franchisors now...
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...necessary to obtain a Freshii franchise? Restaurant experience is always helpful but, if you have experience running another type of business including working with employees and customers, managing cash and generating financial statements, we have a complete training program and manuals as well as field operational staff that can help you learn this business as well as provide ongoing support for you. Is there a cost for the training program or ongoing support? The cost of Freshii University is included in your franchise fee, including training and support at your location for the Grand Opening. Travel, lodging, and food, are the responsibility of the individual franchisee. On going field support after opening can be provided at a per diem cost. How much does a franchise cost? The cost of a franchise is $30,000, payable upon signing of the Franchise Agreement. Am I protected from other Freshii stores opening near my store? At the time a location is determined for your first store a “Protected Area” will be established. The size of the area will depend on the density of population, traffic, competition and other factors. Can I reserve territories for future development after my first store? Yes. At the time of signing of the Franchise Agreement you can also sign a Development Agreement defining the number of stores and area(s) you plan to open those stores. Each additional store reserved under a Development Agreement requires a franchise fee of $30,000, including a payment...
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...Franchises & Business Plans What is a franchise? Using examples from the real world, explain three advantages to the franchiser and to the franchisee. A franchise is where a business with a well-known brand name (the franchisor) lets a person (the franchisee) or a group of people set up their own business using that brand. This is in exchange for an initial fee and continuing royalty payments (a certain percentage of turnover or profit) for as long as the franchise lasts. A franchise is not a type of legal structure in itself. The liability for the person using the franchise depends on the how the business is established. A franchisee can choose which legal structure to adopt, although the franchisor may recommend a type. They have unlimited liability if they are in business as a sole trader or partnership but have limited liability if they set up the franchise as a company. Advantages for the franchiser: * The firm does not have to spend a large amount of money in order to expand * The products necessary for the franchise to operate are under the franchisers direct control * Issuing franchises should generate a continuous stream of revenue from franchisees who are determined to succeed Disadvantages for the franchiser: * The control it has over the product is not as great as if the business sold the product itself, bad publicity from a franchisee could affect the brand image * Franchisers have to offer continuous support, training and development and...
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...Entry Strategy Australia has nearly 1,200 franchise systems, with more franchising outlets per capita than the United States, and has been referred to as the “Franchising Capital of the World”. For many Australians, owning and operating their own business is a lifelong dream, and franchising is a relatively low-risk way to achieve this goal. This form of business is fast-growing, and more than 400,000 Australians are employed as a result of franchising (Vucic). Since 2010, franchising has grown by 15%, which can be attributed to the enactment of specific and compulsory legislation that governs franchise relationships (Baybridge). There are different forms of foreign franchising in this Australia; however, we believe direct franchising is the best option because it provides ultimate control of the franchise network as the two parties involved will have a direct relationship. It also allows for the direct supply of products or allowances made to source own supply. Cultural barriers will have to be worked out to provide adequate training and a third party advisor can help with local customs and commercial practices (Baybridge). Australia has many channels of support for this form of business as more and more companies emerge that aide in franchisee training, franchise system development, public relations and marketing (Vusic). The Franchise Council of Australia provides key aspects of franchise decision making, management, and practices from experts in their field (FCA). ...
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...this assignment once again, we had to analyze a video from the television show Undercover Boss. In which a person who has a high management position at a major Canadian business, decides to become undercover as an entry-level employee to discover the faults in his company. In this episode the founder and CEO Brian Scudamore of one of the largest junk removal companies goes undercover. It is a franchised residential and commercial junk removal company operating in the United States, Canada, and Australia. Brian wants to know if he had lost touch with the empire he created and found out what can he do to make things better to grow more quickly. He mentioned that his company is all about the growth. In North America alone there are 177 franchises and nowadays there is a lot of competition. The first day undercover Brian decided to explore his new business: 1888-WOW-1 Day! It’s a painting company that assures one day completion and high quality work. Brian expected to revolutionize the paint business like 1800-I-GOT-JUNK did for garbage. During this experience he met Darryl, the general manager. They went to a property and Darryl put Brian to prepare the walls before the painting began. There Brian had the opportunity to talk to the manager and realized he is a very optimistic man with good work ethics and attention to detail. Moreover, Darryl mentioned seeing opportunity to grow with the company. Regarding the job they worked in a tight schedule, Brian was working at a slow-paced...
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...Franchise Management “Franchising is utilized by a wide variety of companies in numerous industries to sell goods and services through retail outlets” (Birkeland, 16). Franchising is the ability to sell goods to the consumers of the world. Franchising branches off into many categories such as retail and food. Becoming a franchiser is quickly becoming one of the quickest and most effective ways in today’s society to make money (17). Becoming a franchiser means that you become the head of the franchise that you run. You are your own boss. Becoming a franchiser can also be a very risky investment, as no one knows what may or may not happen (17). Will your franchise be a bust or will it be a huge success? As a franchiser, before you get started investing large sums of money into something, you need to know how to run a franchise, what kind of franchise you want to buy and how to become successful. Knowing how to run a franchise before starting one will help your chances of success. Going to college is the best and most direct way to know exactly what is needed. While at college, you are able to earn many different levels of education related to franchise management. You are able to earn a graduate diploma in franchise management, a master’s degree in franchise management and a master of science in franchise management (Mauricio). Attaining these college diploma levels enables you to learn very valuable knowledge and gain experience. These valuable experiences include...
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...full service restaurant business was nearing saturation and thus the time was ripe to look at other business models to achieve growth. Given that the focus was to grow domestically Mr Tom Alessio, marketing vice president at porcini, influenced senior executives to consider opening limited menu outlets called Porcini's Pronto to serve interstate highway travelers as most outlets serving this segment were either fast food or low end outlets. The problem in the hands of the management was to identify the right format, locations and overall strategy to cater to the format selected. Porcini had to choose between three business models to implement its growth plan namely: Company owned Franchise and Syndicated Model. We in this paper have analyzed the merits and demerits of each model. Analysis The Franchise model offers the best return on capital, while the owned business model offers the best absolute return and the syndicated model...
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...Background and Benefits Sonic boasts one of the lowest turnover ratios in quick-service restaurant franchises. Customers can park under a shady canopy and order food through the curbside speakers. A friendly Carhop delivers orders out to the car where patrons can eat it or take it home. The concept cuts down on busy drive through lines and presents a unique eating experience to customers. A standard store layout with 24 to 36 stalls requires approximately ¾ of an acre for build out. Sonic Food is made-to-order with unique menu items not offered at other Quick Service Restaurant's. Sonic maintains strong sales growth, with remarkable customer frequency statistics and continued high returns for stockholders. The franchise fee is $45,000 with a total investment for a traditional SONIC ranging from $1.1MM to $3.3MM. SONIC is Small Business Administration (SBA) approved. The term of a traditional SONIC franchise is 20 years, plus a 10 year renewal. Non-traditional franchises start with a 10-year term, a 5-year renewal, and a $22,500 franchise fee. The total initial investment ranges from $434,000 to $545,000, excluding land costs. Other non-traditional locations start with a manageable investment of $107,000 to $221,000. In addition, you must have prior or current successful restaurant experience and/or strong entrepreneurial skills. Sonic offers a 12-week training program that includes eight weeks of restaurant training, three weeks at new store openings and one week of classroom...
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...Changes in Business Process 15 Changes in Business Roles 16 Rationale for Changes 16 Changes in Organizational Structure 16 Changes in Business Partner Relationships 17 Setting Core Business Priorities 17 IT Engagement Model Recommendations 18 Companywide IT Governance 18 New Core Business Opportunities 21 Outsourcing Opportunities - Recommendations 21 Size and Scale Considerations 22 Growing the Organization - Recommendations 25 Summary of Enterprise Architecture Proposal for Ralph’s Ribs 29 References 31 Executive Summary In the restaurant business there are between five and seven different BBQ franchise restaurants available depending on the state you want to operate in. Ralph’s needs to have a solid foundation and a firm strategic plan to remain competitive against the other franchise options available so when someone wants to open a new franchise there is no question they would go with Ralph’s Rockin’ Ribs. An Enterprise Architecture will provide Ralph’s Ribs with the roadmap to follow and will...
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