...I made a research 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...
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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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...manners and traditional practices, values and attitudes, language, and personal interaction are considered as the important factors when expanding the sports franchise across the borders. The U.S. sports franchises must provide good quality products and services in order to gain popularity in international market. Anyhow, this paper will focus on the importance of cultural factors in U.S. sports franchises and their products in international market, and government role in protecting sports industries. Cultural Factors There are some cultural factors that the U.S. sports franchises must overcome to increase popularity abroad such as management strength, indigent foreign policy and indigent relationship with Middle East nations, and fun supporting cultural practice. Management strength, most of the United States sports franchises failed due to indigent financial management and misappropriation of management capital. Indigent foreign policy and indigent relationship with Middle East nations, U.S. has even boycotted Olympic Games that were held in one the nations because of indigent diplomatic relationship with those nations. Fun supporting cultural practice, most of the Americans had developed a culture of supporting European football teams and providing huge fan base for such teams and therefore the franchise have a great task of changing the mindset of the Americans to support the domestic football teams in nurturing talents and fund the football associations by paying...
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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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...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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...Analyzing Essay on Franchise- Assignment for Week 10 Ida Johnson GMT 615 SYS/Lecture/DST1 Intra & Entrepreneurship and Business Management Professor: Seth Chodosh July 17, 2015 1 Introduction In the year 1935, a man name David Shakarian, changed his dream into reality by operating a health food store in Pittsburgh, PA. Based on the incremental of his target market, Shakarian was delighted to opening stores in other parts of the US; at which time, he decided to change the company’s name from Lackzoom to General Nutrition Centers, commonly known as (GNC). In no time GNC, started to produce other products such as: vitamin and mineral supplements, foods, drinks, as well as cosmetics. Shakarian, being an entrepreneur who had what it took, did not limit his potentials, but allowed GNC to begin franchising in the year 1988. Today, the GNC Company and franchised stores are operated throughout America and worldwide. According to the website, the company’s franchise strategy has benefited over 70 years, of retail and brand dominance. Because of GNC’s incredible growth, its successful franchise system, and brand awareness through its marketing innovations, more and more people decided to eat healthy in order to live well; and at the same time, the increase of obesity rate, prompted the company to open stores...
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...Franchise My franchise which I chose was Mc Donald’s they sell food to people, they are based in many parts of the country. Franchise is when you use buy the name and products of a large and effective company. The size of this business is large because it has over 250 employees. It is also international according to scale because it is based in many countries like Pakistan, England, France, America and many more. A franchisee is a business or person who has the right to trade as a franchise no one else has the right. A franchisor is a business that is very success full and that can give the right of franchise to other new businesses to use their label. However some of the profit must be given to the franchisor. The owner of this business is the franchisor. There are some of advantages like one of them which are that the owner does not have the freewill to make all of the judgements most of the time judgements related to the products and prices. Problems can be discussed with the franchisor.so my franchise is mc Donald’s and they allow people to buy their name and open a business. They are not buying the company they are buying the name. The person must share the profit with the franchisor. An advantage for this person is that everything he needs go to do with the business will be given to him by the franchisor. So if a person opens a mc Donald’s through franchise and he needs a supply of oil and ingredients he can ask and it will be given to him by the franchisor. One thing the...
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...franchise 1) n. a right granted by the government to a person or corporation, such as a taxi permit, bus route, an airline's use of a public airport, business license, or corporate existence. 2) n. the right to vote in a public election. 3) v. to grant (for a periodic fee or share of profits) the right to operate a business or sell goods or services under a brand or chain name. Well-known franchise operations include McDonald's, Holiday Inns, Ace Hardware, Rexall Drug Stores, and Amway Distributors. 4) n. the right one has to operate a store or sell goods or services under a franchise agreement, as in "we have the Taco Bell franchise in our town." 5) adj. referring to a "franchise tax" which is placed on businesses (especially corporations) for the right to conduct business, as distinguished from a tax on property, income or profits tax. Source: http://legal-dictionary.thefreedictionary.com/Franchise+system According to Steven C. Michael Franchising, in which independent businesses operate under a shared trademark using a common production process, is used primarily by service businesses. It is an enduring and pervasive organisational form. As an organisational form, franchising has a large and visible presence in consumer industries such as restaurants, lodging, auto repair, real estate, hair styling, and specialty retailing, where it has captured typically thirty to forty percent of sales. Business services in which franchising is prominent include temporary...
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...Dollinger (2008), a franchise is defined as “a marketing system by which the owner of a service, trademarked product, or business format grants rights to an individual for the local distribution and/or sale of the service or product. A franchise is a way for new entrepreneurs to start a business that already has name recognition. According to an Entrepreneur magazine article in 2014, the minimum investment required can range from $3000 to over $1 million, depending upon the franchise. While some of the more popular franchises have a reputation for success, others are not as appealing (Radenhausen, 2014). This article examines the warning signs to look for when deciding upon the type of franchise to open. It is imperative that one research a potential franchise opportunity thoroughly. This should involve discussing the franchise with current franchisees, reviewing disclosure and financial information, and talking with the franchisor about the support and training provided. According to Radenhausen (2014), there are six negative scenarios to be aware of when researching a franchise investment opportunity. * Bad word of mouth. The idea behind purchasing a franchise is to have instant brand recognition. If the franchise does not have a great reputation, the purchase of the franchise would be useless and a waste of money. * Conflicting FDD information. The franchise disclosure document (FDD) contains all of the pertinent information regarding a franchise. A lawyer is...
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...Franchise Project In this paper I will go in depth about franchising opportunities from several franchisors, talking about service or products the companies they offer/sell, the different fees that are required, what kind of support system the franchisors offer, their competition, and where they are located in the Upstate if they are at all. The companies that I’m going to elaborate on are Cinnabon, Dominos, Maaco, and Anytime Fitness. Franchise Description and Background Cinnabon Inc. is a wholly-owned subsidiary of Cinnabon International, Inc. which is a wholly-owned subsidiary company Focus Brands Inc. The Cinnabon franchises operate as a Cinnabon retail bakery. They sell cinnamon rolls, cinnamon related products, and beverages. Their target market is EVERYONE (that is what my source says it). The company headquarters is located in Sandy Springs, GA. It was founded in 1985 by Rich and Greg Komen, the CEO is Janet Mitchell, and they opened their first franchise in 2004. Cinnabon offers two different styles franchises: Full Bakery (with a Carvel Express Shoppe option) and Express Bakery (in a New Schlotzsky’s Restaurant option). Maaco Collision Repair and Auto Painting is a subsidiary to Driven Brands is the largest USA based auto body franchise used by the general public for auto body damage repairs, and auto repainting on their personal automobiles. It was founded by Anthony A. Martino in 1972 located in Wilmington, Delaware. They have nearly 500 franchises open across...
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...Subway Franchise Course Instructor’s Name 11 August 2012 Subway Franchise The franchise concept has several advantages for both the franchisor and the franchisee. For the franchisor, offering a franchise arrangement means an easy access to capital formation brought about by the investments of franchisees (Om Sai Ram Center for Financial Management Research, 2006). Furthermore, it provides incremental income for the franchisor through royalty payments. Another advantage of the franchise concept is that it makes possible a faster expansion program for the franchisor supported by motivated distributors in the person of the franchisees (Om Sai Ram Center for Financial Management Research, 2006). The franchisees stand to benefit too from a franchise agreement. The franchisee gets to experience entrepreneurial autonomy using a proven concept, often with extensive recognition of the brand name (Om Sai Ram Center for Financial Management Research, 2006). The franchisee also benefits from the training programs provided by the franchisor, coupled with continuing supervision of the store. Although there are advantages to owning a franchise, franchisees are faced with disadvantages too. Decision-making is quite limited since the franchisee should follow the guidelines set by the franchisor (Om Sai Ram Center for Financial Management Research, 2006). In terms of purchasing, the franchisee is forced to purchase supplies and equipment from the franchisor...
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...and the operating system according to the terms and conditions mentioned in the franchise agreement. Both the franchisor and franchisee must fulfill their obligations under the contract. Before granting franchisee the right to use the name,logo and run the business, franchisee and also the franchisor must reach some requirements. It is same for Aarong. Aarong also has to consider the fact seriously. Before it starts signing agreements, it has to be confirmed both parties are meeting minimum requirements for the deal. Areas of requirements are mentioned bellow that can be used by Aarong to grant international franchise agreement. Information: We can also refer to term “knowledge about franchisor”. Franchisees must have researched on the background, mission, vision, goal and values of the parent organization. Franchisees are required to have primary understanding about business activity and operation procedure of the franchisor. Aarong is a brand with wide vision and clearer mission. Information about Aarong is available on internet. Any willing franchisor must agree with business philosophy and trade activities of Aarong. Also Aarong must have adequate knowledge about franchisees, target countries, locations, business profile of the would-be franchisee.. Legal Requirements: For example, in the United States of America, Standard Discloser document has to be issued by Aarong. UFOC or Uniform Franchise Offering Circular is the other name for the discloser. There are number of other...
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...Running head: franchising and licensing Name: Course: Instructor: Date: Control over franchisee by the franchisor occurs when the franchisee deals with great amount of tasks for the management of the franchise. The franchisee is not capable of building his own success and customer base for his business. The franchisee is not proficient in run his independent business, therefore involves the franchise to maintain control over his business. The franchisee needs specific information on product development and market analysis of the product, the authority is delegated to the franchisor. Hiring a company owned business is not the same as managing franchisees. Most court has advised the right to control to determine weather a relationship between the franchisor and franchisee should give to liability Paul (2010). A valid agency relationship is created. Chris exists and a principle of existence is identified at the time of contracts. The legal capacity principle at the time the act was carried out and at the time of ratification is identified. It appears to have no reason why AL never explained the involvement of Chris. Chris has fulfilled his duties as an agent and the amendment will not be enforceable in court if Al makes a contract with Ben for Chris to be ratified, If Ben is not happy to contract with Chris. Ben has a right of liability, his liability differ to AL. The agent has no authority to sue or being sued on the contract unless he chooses to ratify it...
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...Nama: Deaning Harum P. NIM: 041411231208 WARALABA “KILOS” Nama Perusahaan: KILOS LAUNDRY & DRY CLEANING BARASIAH SADAYANA Head Office: 021-53127500 Kilos merupakan perusahaan yang ingin mengembangkan jalur bisnis di bidang jasa khususnya laundry atau binatu dengan konsep yang memberikan pelayanan cuci dan seterika per kilogram dimana sekarang ini sangat berkembang pesat. pangsa pasar yang terdiri dari mahasiswa, ibu ibu rumah tangga, Event Organizer, apartement residence, wisma – wisma,dan hotel. Kilos menyiapkan paket- paket investasi fanchise/ waralaba yang berbeda- beda agar sesuai dengan kemampuan modal dari investor yang tertarik. Franchise/ waralaba yang ditawarkan berupa workshop yang berkapasitas memadai. Dana yang diinvestasikan akan memberikan mesin industri yang berkemampuan lebih dan mampu menghasilkan standar kualitas yang terjamin an memuaskan. Tipe/ paket investasi waralaba yang ditawarkan: 1. Mini Workshop Paket ini adalah paket yang paling populer bagi investor pemula. Paket ini dapat mencapai kapasitas produksi maksimal sebanyak 60kg/hari. Berikut rincian paket mini workshop: * Harga investasi: Rp. 100.000.000 * Kapasitas produksi perbulan: 1500—1800 kg per bulan * Omset yang diharapkan: Rp. 4.200.000—4.900.000 per bulan * Perkiraan balik modal: 18—20 bulan * Seluruh biaya sewa tempat ataupun upgrade PLN, mesin air, penambahan AC ditanggung oleh investor/ pembeli kemitraan 2. Small Industry Paket ini adalah jenis paket laundry komersil...
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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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