Global Business : Franchising Of Brazil

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

Schlosser tells us about how many companies expand their businesses by selling franchises. Selling franchises has been successful for many companies such as McDonald’s, Subway, and many others were able to expand using this route. In fact, some fast food companies open up some many franchises, that whenever the same restaurant is opened close to another one, that managers complain of losing business. Another thing the books informs us on is that when a franchise doesn’t work out then the fast food company has no choice than to close that area. Subway does this very often and is called “The worst franchise in America”. Next, the book talks about economics. There is a lot of risk taking when it comes to being a franchisee for a fast food restaurant. People who would like to become future franchisees can spend almost 1.5 million dollars just to become one. Before purchasing a franchise, people have to consider whether or not it will be worth the money, because if it doesn’t work out there is no way that

Now over the thousands of years Brazil has literally transformed into modern day. Brazil is the Federal Republic of Brazil. Brazil is in South America and is the

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

Brazil is governed under the 1988 constitution. The president, who is elected by popular vote, serves a four-year term he is in charge of the states and government. There is a two-house legislature made up of a Federal Senate and a Chamber of Representatives. The 81 senators are elected for eight years and the 513 representatives are elected for four years. The president may interfere in state affairs. Governmentally, the country is separated into 26 states and one federal district, each state has its own governor and legislature. The leading political parties are the Brazilian Democratic Movement party, the Democrats party, the Democratic Labor party, the Brazilian Social Democracy party, and the Workers party.

Federative Republic of Brazil has an area of 8.5 million square-kilometers, which is slightly smaller than the US, and makes it the fifth largest country in the world (The World FactBook [WFB], 2015a). It has a population of about 204.3 million (WFB, 2015a). As the South America's largest economy, the gross domestic product (GDP) of Brazil is about $2.353 trillion and the GDP per capita is around $16,100 in 2014 (WFB, 2015a).

Brazil has a population of 202 million people, distributed in a geographic area of 8,515,767.049 sq Km. From 1964 to 1988, the country were under a military regime, after promulgation of the first Constitution in 1988, the dictatorship was banned. Afterwards, it faced with several economic plans to control meteoric inflation rates, finally about 2000, during the mandate of Sr. Fernando Henrique Cardoso, population experienced economic stability and controlled inflation rate. The currency, Real, had turned equivalent to dollar and population started to consume a diversity of products, nationals or internationals.

Some exports are equipment, iron ore, soybeans, and of course coffee. Brazil's export partners are China, U.S., Argentina, and Netherlands.(Central Intelligence Agency) Most of their land use is; agriculture 32.9%, forest 61.9%, others: 51.2%. Ethniques: white but their main language is Portuguese. Religion is mostly Roman Catholic. (Central Intelligence Agency) Brazil's government type is Federal Presidential Rep.. Military service age and obligation is 18-45 and it has to be for 10-12 months long. Well besides that, Brazil is 1 of 17 megadiverse countries. (Central Intelligence Agency) It is also inhabited by numerous tribal nations. 1500 the explorer Pedro Alvares Cabral discovered Brazil. Sadly Brazil remained a portuguese colony until 1808. But finally found their independence in 1822, and now have 26 states. (Central Intelligence

The Brazilian Federation runs on similar principles as that of our great nation the United States of America. The fundamentals in which this nation governors set on the following sovereignty, citizenship, dignity of human beings freedom of enterprise and political pluralism. The fact that Brazil has a check and balances system of government shows that the country tries to combat corruption and put its people first. The branches of government consist of the executive, legislative and judiciary branches. The Executive and legislative branches are voted in to office by the people however the judicial branch of government is appointed. Brazil sports much more political parties as that of the United States. The major parties being the Worker Party the Brazilian Social Democracy Party there is also the Democrats and the Brazilian Democratic Movement. In Brazil there can be as many as fifteen political parties represented in Congress. The system again similar to that of the United States has the President of the executive branch as both head of government and state and which are elected on a four-year basis with the option to run for an additional four-year term. The law and order of this nation is governed and guided by the Federal Constitution and is the

It has its advantages and disadvantages to franchise the business. It is a careful decision to make for anyone to invest a lot of money into a franchise and everyone should be comparing pros and cons.

Brazil is now a federal republic with 26 states and a federal distract. In the 1988 constitution granted broad powers to the federal government, consisting of executive, legislative and judicial branches, similar to our form of government. The president holds office for four years, with the right to re-election for an additional four-year term, and appoints his own cabinet. On October third, 1994 elections were held and won by popular vote by Fernando Henrique Cardoso who later took office for two terms on January first, 1995 to the present after wining a second term in 1998. (edci.gov) Federal deputies and senators who belong to the parties compromising the government coalitions do not always vote with the government. As a result, President Cardoso has had difficulty, at times, gaining sufficient support for some of his legislative priorities, despite the fact that his coalition parties hold an overwhelming majority of congressional seats. Cardoso as president of Brazil, hold two titles while he remains in office: Chief of State and Head of the Government. These presidential powers are balanced by a bicameral legislature. There are 81 senators, three for each state and also for the federal district, and 513 deputies. A deputy being a member of the lower house of the legislative assemblies who has the power to take charge when their superior is absent. The Senate terms are assigned for eight years, with elections staggered so that

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

By buying into a franchise you are gaining the benefit of the franchisors experience as well as the name and reputation that has already been built up by the franchisor. Therefore it is no wonder that ‘according to the U.S. Commerce Department, an estimated 95% of franchises succeed, whereas only 25-35% of independent businesses succeed.’ (http://money.howstuffworks.com) It is also not surprising that franchising makes up for about 3.2 percent of all businesses and 35 percent of all retail and service revenue in the United States, proving that it is big business. Franchising is very often a wise choice because consumers like

In the business world there are many routes businesses can take to try to ensure a successful venture. There are sole proprietorships, partnerships, limited liability partnerships, corporations, limited liability corporations, S corporations, and then there is franchising. A formal definition of franchising is “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, n.d.). In simpler terms, franchising is paying someone for their business, marketing, and operations strategy, as well as the use of their name (Obringer, n.d.). Discussed next are the important roles in franchising.