The Country's Best Yogurt (Tcby) Case Study

1846 Words Apr 16th, 2008 8 Pages
2.0 Introduction
TCBY has been a frozen treats product innovator from the day its first shop opened in Little Rock, Arkansas in 1981. The great-tasting, low-fat frozen yogurt concept received an enthusiastic response from an increasingly health-conscious public. Its trendy new product propelled the company to the forefront of franchising, and was the ‘first in a long line of ground-breaking menu items that anticipated consumer preferences and continually refreshed the TCBY concept’ (Conlin 2001, p. 133). But TCBY products are just one of the reasons that thousands of operators have concluded that a TCBY franchise is the preferred opportunity in branded frozen treats, and a dynamic partner in any co-branded concept. However, TCBY is facing
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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.
However, franchising is likely to have a negative impact to the business if it is not managed well, and it is often come of the concerns for both parties. Generally speaking, the major concern facing franchisees is that franchising hardly guarantees a profit. This is because of the

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