Sunday, 2 March 2014

What are the advantages and disadvantages of a parent business (the franchisor) franchising its operations

Franchise Profile Research Worksheet
Entrepreneurship
How would you define franchising?



What are the advantages and disadvantages of a parent business (the franchisor) franchising its operations.
Advantages
Disadvantages











How was the business created? (whose idea, history of the company)





Marketing/ Advertising
Provide a basic understanding of the role of marketing in franchising. 




Identify the marketing strategy used for this company:  global, national, local?





Why is this strategy the best choice for this particular business? (Knowledgeable opinion)





Determine the advertising fee arrangements for the franchisees




Operations Management (Procurement)
Provide a basic understanding of the supply chain and procurement strategies used by franchises.  What is meant by procurement?  Why is procurement different for a franchise?







Identify the procurement process for the parent and its franchisees (e.g.central procurement of supplies and/or raw materials)





Explain the advantages and disadvantages of the procurement process this                                     company uses
Advantages
Disadvantages











Costs
Provide a basic understanding of the costs associated with opening and operating a franchise.  What costs are included?




Determine start up costs and financial requirements for approval




Determine if the parent assists in financing the new franchise



Identify royalty fees owed to the parent, as well as the payment schedule
Human Resources
Provide a basic understanding of the staffing and training requirements in franchising.  Why is this different for a franchise?






Does this company provide corporate training for its franchisees?  If so, what skills are they trying to develop in their franchise owners and their employees?






           
Identify advantages and disadvantages of corporate training

Advantages
Disadvantages










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