Designing A Business Strategy For Getting And Keeping Customers

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

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 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)

Franchising is defined as “a commercial agreement between a party that owns a trade name or trademark (the franchisor) and party that sells or distributes goods or services using that trade name or trademark (the franchisee) (Kubasek et al., 2015, p. 431). There are key advantages for choosing a franchise when starting a new business. First, there is many times instant brand awareness that is identifiable by potential customers, which you as a new owner do not have to concentrate on building. Secondly, on-going marketing of your business is backed by the power of the established brand, and could be as simple as contributing a fee to a advertising fund that is driven by the franchisor. Thirdly, the Return on Investment (ROI) will most likely be faster as the customers are “ready-made” and eager to buy your product or service. Fourthly, the franchise model provides a built-in support model, both from the franchisor and from other franchisees throughout the region and nation. Lastly, the franchise will provide consistent and extensive training in every aspect of the business (Goldberg, 2015).

Famous brands was founded by George Halamandres in 1960, he had a vision of bringing steak houses to south Africa after a trip to the USA in the 1950s. Famous brands first casual dining restaurant was Steers. In 1994 they were registered on the JSE at a price of R1 per share, In 1997 famous brands acquired their next franchise, Debonairs Pizza and then in 1999 they acquired Fishaways, over the last twenty years they have acquired many other casual dining franchises such as Wimpy, Milky Lane, Mugg & Bean and Keg to name a few, they have 27 brands under their franchise network with a total of 2782 restaurants in South Africa, Africa, United Kingdom and the Middle East, They are acquiring a 28th brand. Famous brands also have a Manufacturing and logistics division they currently have 117 trucks in that logistics fleet. Famous Brands are now worth an estimated 11 Billion rand.

Not having to answer to a corporate boss is the dream of many and the flexibility that owning a business franchise creates provides this option. Success is not reached by simply creating a business, however. The level of success is measured by the size and efficiency of the business. Business growth is the driving force of the economy. The additional jobs and revenues created when a business expands allow the economy to grow at exponential rates. One of the fastest and most popular ways to increase the size of a business is to turn it into a franchise, which can then be purchased by individuals. Franchising provides opportunities that are beneficial to both the parent company and the purchaser. The company that owns the business can expand

The franchisor markets a unique business system under a trade name and franchising adopt the standardise procedures to run their own business.

At first, when a brand chooses to enter a new market, most of the merchants would choose to open a single or minority shop to begin the business. However, it is difficult to bend into the market and give the customer a deep impression. But franchising solves the problem of it. When Subway recruits a batch of franchisees, it can help them begin the business in the meantime, so that it quickly forms the economies of scale and expansion. It is not only save the time, but also have a big impact on the market. Now, more and more people know the Subway and have a high identification though promotion. Secondly, franchising helps Subway achieve standardization. It requires central purchasing that it is effective to control the unity of products’ quality and price and save the cost of decision. What is more, it offers a standard training for the stuffs. At ordinary times, we all can see every Subway sell the same sandwiches, have same ads and same requirement of stuffs. In addition, franchising is help the Subway enter into Chinese market with minimal entry costs. Because the local franchisees will help assume many cost and responsibility for the Subway. Like the cost of decoration and the advertising. At last, franchising allows the focal firm to avoid trade barriers associated with exporting and FDI,

3a.Franchising is a marketing system revolving around a two-party agreement, whereby the franchisee conducts business according to the terms specified by the franchisor

Franchising refers to the franchisors in a form of contract that allows franchisees to be compensation for the use of its name, trademarks, and proprietary technology, product and operation management, in other business activities and business models. (Siebert, 2004)

Franchising is a typical North American process for rapid market expansion but it is gaining traction in other parts of the world. Franchising works well for firms that have a repeatable business model that can be easily transferred into other markets. Two caveats are required when considering using the franchise model. The first is that your business model should either be very unique or have strong brand recognition that can be utilized internationally and secondly you may be creating your future competition in your franchisee. (Tradestart, 2015)

Franchising is a common term in daily life, business discourse, and the law. Nevertheless, the term is used in different contexts and with different meanings. Coughlan, Anderson, Stern, and El-Ansary employ the European Union’s description of franchising as a “…package of industrial or intellectual property rights.” The EU identifies three features of franchising—a common name or sign, with a uniform presentation of the premises, communication of know-how from franchisor to franchisee, and continuing provision of commercial or technical services by the franchisor to the franchisee.

“A continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offers assistance in organizing, training, merchandising, marketing and managing in return for a monetary consideration. Franchising is a form of business by which the owner (franchisor) of a product, service or method obtains distribution through affiliated dealers” (entrepreneur, 2015)

"Franchising is the wave of the future," according to the U.S. Department of Commerce. John Naisbitt writes in Megatrends that "Franchising is the single most successful marketing concept ever." Nowadays, McDonald’s Corporation has 36,368 restaurants around the world. McDonald’s has established its success based on a widespread practise in capitalistic societies, known as franchising. Many entrepreneurs (the franchisees) have chosen to acquire a franchise to access the knowledge, the trademark, and the processes of a corporation (the franchisor); in order to sell a product, or provide a service under the business’ name. In return, depending on the franchise contract, the franchisee usually pays additional money for the start-up of his company, and annual licensing fees. Franchises are extremely popular among entrepreneurs who wish to operate in highly competitive industries, such as fast-food industry. In fact, franchises’ biggest advantage is trademarks. Through franchising, entrepreneurs gain access to an established company’s brand name, already known by the customers. Also, the franchisor often provides assistance before and during the life of the franchise. Of course, success is not guaranteed, and work and talent have to be invested to attain profits. Many americans have achieved wealthiness through franchising. Thus, despite the fact that some entrepreneurs who attempted this endeavor have not been so fortunate, and eventually declared bankruptcy, I strongly believe

Franchising is a long-term cooperative relationship between two entities – a Franchisor and a Franchisee, (NZNC, 2015) they both work on a