Case Study Pizza2co

A franchise is a legal agreement between franchisers and franchisees that consents use of the franchise’s trademark and trade name or marketing plan

Franchising is simply treated as for expanding a business and distributing goods and services through a contract based relationship. In franchising, franchisors [whose business is handed over to a third party to manage, and with its trademark] not only specify the products and services that will be provided by the franchisees [a person or company who is given authority to do business under the trademark and trade name by the franchisor], but also provide them with an operating system, brand and support.

The first choice of business is the franchise. In a franchise, legal binding agreement is entered into between two firms, the franchisor (the product or service owner) and the franchisee (the firm to market the product or service in a particular location). The franchisee pays a certain sum of money for the right to market this product” (Rubin, 1978, p.224). The franchising is more prevalent in the restaurant industry (Hoffman & Preble, 2003). The two distinct features of this business type include; first, in order to notable service components should

Franchising is a business model that allows companies to rapidly expand their market share. According to Franchise.com (2015), there are three types of franchises: distributorships, trademark licensing, and business format franchises. When two organizations enter into a distributorship, the originating company provides the rights another company to sell their products. An example of a distributorship is when an auto manufacturing company grants rights to a dealership to sell their vehicles (Franchise.com, 2015). Trademark licensing is when one company allows another company to use their trademark (Franchise.com, 2015). The business format franchise authorizes franchisees to sell the parent company’s products and/or services as well as utilize their business model. This type of franchising is the most common and is the type needed to obtain to open a new Cold Stone Creamery.

Franchising is simply a method for expanding a business and distributing goods and distributing goods and services through a licensing relationship. In franchising, franchisors not only specify the products and services that will be offered by the franchisees, but also provide them with an operating system, brand and support. (Franchise.org, 2016)

This Literature review explains if a franchise is high or low risk way of entering into a market. It also explains whether a franchisee is suited for a certain franchise. Franchises can be seen all over the world, with everyone being introduced to them, as consumers, from a young age (Longenecker et al., 2011). Thomas and Seid (2000) agree with this and believes due to it, people think they understand a lot more about a franchise than they actually do, creating myths about the rate of success and the ease of entry. Antitrust Law and Economics of Product Distribution (2006, p.5) defines a franchise in a 3 part way as, “(1) a franchisee (a) offers, sells or distributes a franchisor’s goods or services, which are identified by

The market studies consisting of the forecast of the estimated demand show that the pizza

Franchising is a well-known business and commerce procedure that brings together the title-holder of recognized merchandise with another business or products. This system is readily used by small businesses and companies to provide as a mean to provide authentication and support for their business by having a brand name of a well-known company associated with it. However like most business entry strategies franchising to has some

What is a Franchise: A franchisee pays an initial fee and a percentage of profit to a franchisor; in return, the franchisee gains the use of a trademark, ongoing support from the franchisor, and the right to use the franchisor's system of doing business and sell its products or services.

California Pizza Kitchen is one of the leading casual dining restaurants in United States that mainly focus on providing hearth baked pizza. California Pizza Kitchen is known as CPK within the domestic food industry and founded by Richard Rosenfield and Larry Flax in 1985 in Beverly Hills, California. California Pizza Kitchen highly values the satisfaction from its customers and a positive return to the shareholders. In order to achieve the company’s goal of taking a leading market share in the pizza marketplace as well as casual dining restaurant chain, the innovation teams work dedicatedly and committedly on the restaurant’s menu development by designing innovative premium pizza with a wide range of toppings selection.

Franchises are across the world and their growing. places such as McDonalds,7eleven and Burger king have been around for a while, and will continue until the day the world dies. A franchise is a business relationship in which a franchisor grants a license to use the name of the business calling him the franchisee. To become a Franchise is not an overnight task Capital has to be raised to purchase a franchise. Most franchises can be up to one million dollars or more. After raising capital, a franchise can be purchased, but there are rules and regulations that must be followed. Franchisees have duties and responsibilities they have to account for. Then the franchise agreement that needs to be followed to the letter.

Franchisors are increasingly having to be more and more selective in the adoption of franchisees with factors such as economic climate and the potential difficulty with growth playing key factors in the decision making process. It is not simply an ability to grow which creates a successful Franchise and nor is it the desire of any franchisor to adopt every potential franchisee. Franchisors are becoming more and more scrutinising as the global economy declines. There is a general understanding within any franchised

According to International Franchise Association (IFA), ‘‘a franchise is the agreement between two legally independent parties which give a person or group of people (franchisee) the right to market a product or service using trademark of another business (franchisor)’’ (IFA, 2015).

Franchising has been an influential economic engine and is vital in the expansion and growth of the business for nearly half a century (Ekelund, 2014). The inherent benefits of franchising as a business model are the key influencers of the decision of entrepreneurs opting for franchising instead of establishing a new business (Oni, Sekwele, Matiza & Pelser 2014). Beredo and Mendoza (2013) said that in order to survive in this kind of business, capital, skill, positive attitude, good location, good management and best service should be considered. Furthermore, that every franchise system revolves around its franchisees’ quality and the personal decisions that the management make with respect to their work. Understanding the cost and returns are essentials which franchise companies must work in their programs to the market and be straightforward in the assessments, with these, returns can be generated over the period (Kong & Zwisler, 2007).

Dominos is a leading pizza chain with stores in New Zealand and Europe. Dominos has the world’s largest pizza menu giving its customers 200,000 options to choose from earning them over ninty million in sales yearly. However, due to the lack of communication on behalf of head office with its franchisees and franchisee owners with staff it has caused problems for all sectors of