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Some of the common weaknesses the franchise is facing include, work inefficiencies at the franchise, technologies which are deemed as outdated and high staff turnover. Additionally, the franchise also experiences problems in relation with bad acquisition, tarnished reputation due to occasional poor services and outdated technologies. In some cases, the franchise also experience problems in relation to high debt

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 franchiser can attain rapid growth for the chain by sign- ing up many franchisees in many different locations.

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

The number of rivals has been increasing because of new entrants that take advantage of low capital that is needed to open a franchise. The franchise model has allowed companies to compete on a growing global level. The QSR companies have extended operations into Europe to

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.

387). It is beneficial for both parties in its ideal state, because on one hand the franchisor obtains new sources of expansion capital, self-motivated vendors for its products, and therefore an opportunity to enter new markets and increase the market share. On the other hand, franchisees gain products or services, expertise, and the stability usually reserved for large and reliable enterprises so that it may lessen the risk for them when they start a new business. Thus, it is essential for new businesses to build up this channel relationship by buying a franchise from a large, dominant franchisor with a well-managed franchising system. In TCBY’s case, it is strongly evident that one of TCBY’s strengths is its franchisee support program. The company provides sufficient operating manuals and marketing materials to assist its franchisees so that they are likely to have sound understanding about store operations. Also, a new franchisee of TCBY has easy access to many items needed for start-up and for day-to-day business. As a result of TCBY’s well managed franchising system, it leads to a 30 percent market share for TCBY in the late 1980s.

A strategic plan is the procedure That can either address a business as a whole or just parts of the business. Marketing strategies are originated from strategic plans. Marketing plans and sales plans are vital to create to successful business. Restructuring is when a company is reorganizing the overall structure of the company from structural, legal, and operational

allocates to the franchisor the right to exercise control over the daily operations of the franchise,

It was an all-day breakfast restaurant with a business model to serve fresh, healthy and tasty food to a loyal customer base. However, there were some major problems and the owner, Melhuish decided to rectify the situation. The first was to increase customer loyalty and increase sales, and the best way to do so was by reducing the waiting period so the customers can get their food more quickly. In addition, all menu items were cooked fresh and healthy to differentiate themselves from competitors. Secondly, the owner wanted to find a life-time partner who will meet the company’s expectation. Therefore, the prospective franchisee must engaged in various steps in order to be consider to buy a franchise restaurant “because Sunset-at-Blue was one of only two Sunset Grill franchises operating in tourist destinations, Melhuish faced an array of challenges unknown to Toronto-area locations” (Haywood et al., 2011). In order to get this situation under controlled, effective inventory management needed to take place. This allows Sunset-at-Blue the opportunity to meet or exceed customer’s expectations. According to Haywood et al. (2011), “To accomplish this, he deviated (with approval from the franchisor) from the franchise model by adding personal touches. Melhuish changed the floor plan and the order process, as well as added more affordable meals and alcoholic beverages on the menu to create a more relaxed comfortable ambiance atmosphere for the entire family. However, the capacity constraint was still an issue and to accommodate Sunset Grill customers, Melhuish should maximize operating capacity to meet all current and future

Required: (i) Show the bank account in Jeremy’s general ledger, including any adjusting entries which are required by the information in (i) to (vii) above; Note: you MUST present your answer in a format which clearly indicates whether each entry is a

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

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 benefits of standardisation, as well as the risks should be understood. A top down standardisation of concept precludes the bottom up learning that is necessary to adapt to dynamic markets. Moreover, it is the franchisees - who are close to customers, markets, and employees - who have the most intimate information about changes in demographics, markets, and customer tastes that are most likely to affect the future direction of the business. Yet, these people are precluded from innovating or customizing the concept to experiment or take account of local and/or changing market conditions.

‘As a result, expansion can proceed at a much faster pace than would otherwise be possible, enabling the franchisor to achieve increased market share whilst benefiting from economies of scale.’ (http://www.butterfield.co.za) Finally, franchisors can benefit from the cultural knowledge and know-how of local managers. This can be helpful in lowering the risk of business failure in unfamiliar markets, as well as creating a competitive advantage. Franchising offers franchisees the advantage of starting up a new business quickly based on a proven trademark and way of doing business, as opposed to building a new business from scratch. The franchised business is based on a proven idea and has an existing customer base, therefore making it much easier to sell your product than it would if you were to start up your own business.