...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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...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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...MBA 544 Case Study 10 Firehouse Subs Jack James 10/14/12 1. Franchisees gain numerous advantage when they purchase a franchise. First, while a franchisee may be opening a new store, it is part of an already established business and system. This means a franchisee has access to turnkey operations, allowing an increased speed to establishing and growing the business. Franchisees also get support for management and training activities, as well as financial assistance. Going hand in hand with this, a franchise already has an established brand name, quality of goods and service which have been standardized across the franchisor’s larger company, and national advertising programs from franchisors. Franchises also have large-volume, centralized buying power. A franchise has proven products, and successful business format. Finally, site selection and territorial protection is offered for franchises. All of these advantages increase the chance for a new business in a franchise to be successful. While there are many advantages to a franchise, there are disadvantages as well. First and foremost, in order to own a franchise and take advantage of all the benefits of owning a franchise, there are fees and royalties which are ongoing for advertising, use of the franchise name, products and services, and for use of the business system. A franchisee must also adhere strictly to regulations and standards imposed by franchisors. Franchisors also require the purchase of supplies and equipment...
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...BUS357 Starting and Managing a Business Assignment 2 – Group based Assignment January 2013 Presentation 1. Executive Summary This document proposes the feasibility of opening a new Pet Lovers Centre Franchise outlet at the proposed recreational hub at the site of the former Parkland Golf Range in 2014. We see a need for more pet friendly facilities at East Coast Park and we believe that of all the pet franchises operating locally, Pet Lovers Centre has the most compatible business practices and values with our intended business. With steady growth in both the pet population and pet product sales in Singapore, we are targeting the middle class segment primarily, with products priced between $1, up to $500. Our main focus is on dog owners who enjoy bringing their dogs out to play at the beach or park. With an existing market share of 49.7 percent, Pet Lovers Centre is well positioned to benefit from the increased exposure towards pet activities once the hub opens. Our financial projections show that the project will be financially feasible with gross profits of about $300,000 annually, and net income of about $100,000 each year. Our monthly breakeven point requires us to sell roughly 67 units of pet accessories with an average worth of $150, as well as 53 grooming and training appointments worth $350 per session to meet costs monthly. Our estimated starting capital required is $300,000, 50% of which will come from shareholders as equity and...
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...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 operate in India, where the franchising industry is growing at an annual rate of 30 percent. India’s middle class, which currently stands at 50 million, is expected to grow to 583 million by 2025, a growth rate that appeals to...
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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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...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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...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 operate in India, where the franchising industry is growing at an annual rate of 30 percent. India’s middle class, which currently stands at 50 million, is expected to grow to 583 million by 2025, a growth rate that appeals to...
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...McDonald’s can eliminate waste and protect their inventory. “The only way to get a fresh hamburger under the old system was to make a special order. Now, due to more sophisticated burger-making technology (including a record-breaking bun toaster), McDonald's is able to make food fast enough to wait until it's been ordered” (Atkinson, 2005, p. 1). Inventory Management Problem Every business incurs operational costs and in restaurants inventory control is particularly important because the items held in inventory tend to be highly perishable. “It is not uncommon to have several hundred different types of raw food product in storage at any one moment and poor management leads to a significant waste” (Said, 2012). Each McDonald’s restaurant franchise utilizes a just in time inventory and delivery system in which the preparation of a meal does not begin until the customer has placed a specific order. This system allows McDonald’s to provide a customer with their order as fast as possible while having the finished product sitting in inventory for as little time as possible. The benefit to this type of system is that for a...
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...ACCT101 project Case5-3 1. Electric utility bills Method 1: As everyone knows, the electricity meters can be read every month. Therefore, in December the company will know the electricity usage of the former 12 months including that of December last year. And the usage of electricity in December this year can be included in the next year’s revenue. Method 2: Strictly speaking, the revenue recognized in method 1 is not earned in THIS YEAR. through the method of estimating the electricity usage in December this year, added by the actual usage of former 11 months, we can get record the revenue and then do some adjustment in the next year. 2. Retainer fee none of the $10,000 should be counted as revenue in 2006. In accordance with the Basic Recognition Criteria, the revenue cannot be booked unless the entity has substantially performed what is required in order to earn income. Furnishing legal advice upon request is the law firm’s required service to be provided in this case. Since they did not perform any consultant service, the law firm cannot book the revenue for year 2006. Another appropriate way is applying the franchises model in this situation. As a franchiser recognizes revenue during the period in which it provides the services, the law firm may settle the revenue when their first general advice service is made. 3. Cruise None of the $260,000 was revenue to Raymond’s in 2006 since the service would not be rendered until January 23, 2007. Journal entries...
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...1. Introduction The establishment of Rocky Mountain Chocolate Factory Ico. (RMCF), was in 1982 as a public offering business. It had a global focus and was able to insert itself within the Canadian society and the United Arab Emirates community. Its main activity is within the confectionery industry. The Board of Directors (BoD) has kept its vision and contributed to the success of the business and has carried it to higher levels of efficiency. The innovative capacity of its personnel has given new stands to the business. Its master who design and develops the chocolate mix has been able to continue its fascinating creativity. As the discussion is taken we shall understand the success and also the needs of RMCF. a. Statement problem The Rocky Mountain Chocolate Factory Inc. to address in its continued expansionary growth needs to attend the following as its problem: “impact primary franchisees within continental USA and rest of the world, imminent product patenting, employees’ union agreement and increasing one impact product every year to increase customers’ satisfaction”. 2. Analysis As the case study for RMCF is analyzed; a business engrossed in the confectionery industry, where from year to year there are new entrants to challenge market share and embed in an industry which is proving vibrant and demanding. Based on such facts lets analyze it through a SWOT study. First let’s analyze two factors (Strengths and Weaknesses): Strengths: 1. “The candy maker’s...
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...Subway case study | Subway and the challenges of franchising in China | | ADVANTAGES AND BEST ENTRY STRATEGY OF SUBWAY | | | SUBWAY AND THE CHALLENGES OF FRANCHISHING IN CHINA Question: - What are the advantages of franchising in China from Jim Bryant’s perspective? From Subways perspective, is franchising the best entry strategy for China and why? Answer: - “Subway 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...
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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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...year and wants a new identity, they still have a long way to go, but this week is huge in their race for their division. Dallas Empire is a veteran team who finds ways to win. I think Doom will find away this week. Next week we have Necks vs. DPT. The Roughnecks are a team that seems to keep winning, and are a force to reckon with when healthy. DPT suffered their first loss of the season and the board has not been nearly as exciting since the lost. I think they are concentrating on beating every opponent and getting back to the Championship. I think DPT will make sure the board will not have anything to say after this week. Last but not least Franchise vs. Rollers, last year game The Rollers beat Franchise in a dominating fashion. Rollers have all the talent to win every game, but have to make better decisions. The Franchise have looked consistent all year and play smash football. I...
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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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