The Relationship Between Licensing And Franchising

My company’s name is Sun Dry Fruits and it offers dehydrated organic fruits. In order to make my business into a franchising opportunity, I had to take into consideration these factors: demand, competition, investment, and training.

Franchising agreement compare to licensing agreement tends to be longer and the franchisor offers a broader

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

This paper will explore what a Biblical Worldview is and present a Biblical Worldview process of contracts, ownership and responsibility.

Without any questions, franchising and licensing is one of the key points in the further development of Yum! Brands. As we discussed earlier Yum! strategy is an expanding strategy and concentrate on penetration new markets. Basically, the chances of cases of local markets to be licensed and franchised under yum are quiet rare and

Franchising acquired its popularity by establishing a common method of service which gave customers the comfort that they look for when they look for a meal.When the customers go out

• The most critical opportunity is the location(s) of expansion. Focusing on long-run profit potential would be expanding in a familiar ‘home-base’ region. From the alternatives, a location(s) that could achieve all key success factors coupled with a strong Franchisee base (that meets required criteria) would be the first step to the desired goal of the revenue growth process. From this foundation, a critical path to overcome market entry obstacles would need to be addressed.

Hill, C. (2011). International business, competing in the global marketplace. (8 ed.). New York, NY: McGraw-Hill Irwin.

Once an organization has decided to expand into the global marketplace, it must select a method of market entry. Companies may choose from five general options: (1) exporting, (2) franchising, (3) a strategic alliance, (4) a joint venture, and (5) direct investment. Deciding which option is right for an organization is based upon the level of financial commitment, risk,

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)

As Christians, we are required to show God’s rule in all occupations. We exercise dominion by becoming good stewards to the gifts He has bestowed upon us. God expects us to use our gifts to the fullest. “From everyone who has given much, much will be demanded; and from the one who has been entrusted with much, much more will be asked.” Luke 12:48 (NIV). The idea of biblical entrepreneurship and the Christian worldview are closely related.

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

Franchising is a type of business or a relationship (Chatfield et al., 2009), where a party (franchisee) acquires the right to use a company's (franchisor) property knowledge processes and trademarks (Investopedia, n.d.). In other words, by paying a start-up and annual licensing fees, the franchisee can use the franchisor's name, distribution channels, software, operations manual, and others, to sell a product or offer a service (Collins & Perret, 2015). Moreover, franchising has positive and negative factors for both sides. On the franchisee's side, the positive factors are: full operational control, franchisor's support, and higher profits after fees. The negative components are: bound to franchisor's global initiatives and no control of brand reputation. On the franchisor's side, the advantages are: company's growth, no operating risk, and more business fees with minimal effort. On the other hand, the limitations are: lack of operational quality, satisfaction of guests and employees, and company's image (Collins & Perret, 2015). Today, franchises account for a big part of the world's businesses, such as stores and restaurants. In the hotel industry we can see this type of business happening with Hampton by Hilton and Day's Inn (Investopedia, n.d.).

Globalization, new style of life and internet participate highly in making franchising important in every country, in our country we have a plenty of global franchising for example; Carrefour, Burger king, McDonalds, Adiddas…,etc.

‘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.