A comprehensive and accessible companion to a proven business model, this book shows how to franchise an existing business, supported by case studies, data, and research reports on the franchise industry.
For small to medium sized businesses, franchising can lead to successful and profitable growth, and plays an important role within the US economy. Utilizing a proprietary dataset with the most up-to-date statistics regarding a range of franchising trends, this analytical guide is based on management research frameworks that will lead to better understanding of a range of franchising strategies. Issues covered include:
- The franchising business model, including its history, economic impact, and regulations
- Critical factors that significantly influence franchising success, enabling a comprehensive feasibility analysis of franchising potential or existing business ideas
- Implementation components of franchising strategies, such as different franchise structures, regional development plans, and future trends
With its clear focus and practical orientation, this book will be a valuable resource for entrepreneurs, as well as undergraduate and postgraduate students, interested in acquiring the knowledge, skills, and abilities to succeed in franchising.
Author(s): Ed Teixeira, Richard Chan
Publisher: Routledge
Year: 2022
Language: English
Pages: 183
City: New York
Cover
Endorsements
Half Title
Title Page
Copyright Page
Dedication
Contents
Acknowledgments
Chapter 1: Introduction to Franchising
Definition of Franchising
Major Theoretical Frameworks
History of Franchising
Franchising Regulations and Associations
International Franchising
Franchising Business Models
Impact of Franchising in the United States
Advantages and Disadvantages of Franchising for Franchisors
Advantages and Disadvantages of Franchising for Franchisees
Franchise Industry Statistics
Automotive
Commercial and Residential Services
Quick-Service Restaurants
Full-Service Restaurants
Retail Food
Lodging
Real Estate
Retail Products and Services
Business Services
Personal Services
Summary
Notes
Chapter 2: Fundamentals of Franchising
The Components of the Franchise Business Model
Franchise Intellectual Property
The Franchise Trade/Service
The Franchise Operating System
Franchise Training
The Franchise Operations Manual
Franchise Marketing
Franchise Development
Franchiser Support
Vendor Purchasing Programs
Competitive Intelligence
The Franchise Territory
Franchise Site Selection
The Initial Franchise Fee and Continuing Payments
Franchise Term
Summary
Notes
Chapter 3: The Relevancy of Emerging Franchise Performance
Emerging Franchise Performance and Category Differences
Emerging Franchise Performance Data
The Top Five Franchises in Five Franchise Categories
Emerging Franchises System Growth
Amount of Franchise Investment
Summary
Notes
Chapter 4: Evaluating the Franchise Venture
The Evaluation Process and Its Importance
Initial Thought Experiment
Confirming Company Objectives
Five Key Aspects of the Evaluation Process
Internal Feasibility Analysis - Resource Availability
Financial Capital
Management/Employee Competence
Internal Feasibility Analysis - Franchisability of the Core Company Attributes
External Feasibility Analysis - Industry Practices and Trends
Franchisee Profitability, Cash Flow, and Return on Investment
Final Check
Summary
Notes
Chapter 5: Preparing for New Franchise Launch
Securing Trademarks and Website Domain Names
Incorporating the Franchise Corporation
Choosing between Two Franchise Development Models
Understanding Essential Franchise Documents
The Franchise Operations Manual
Sample Operations Manual
Table of Contents
The Franchise Disclosure Document
Item 5: Franchising Model
Item 5: Initial Franchise Fee
Item 6: Royalties and Other Fees
Item 7: Estimated Initial Investment
Item 9: Franchisee's Obligations
Item 11: Franchiser Obligations
Item 12: Territory
Item 19: Financial Performance Representation
The Franchise Agreement
The Franchise Business Plan
Considering Franchise Advisors
The Franchise Attorney
The Franchise Consultant
Summary
Notes
Chapter 6: Developing Franchisor Organizational Capabilities
Three Examples of Franchisor Organizational Structure
Top Management Team
Chief Executive Officer
Chief Financial Officer
Vice President Franchise Development
Franchise Coordinator
Director of Franchise Operations
Franchisor Outsourced Services
Marketing Agency
IT Support
Independent Accounting Firm
Summary
Notes
Chapter 7: Franchise System Development
Target Franchise Territories
Create the Franchisee Profile
Recruiting Franchise Candidates
Franchise Marketing Materials
The Franchise Website
Franchise Brokers
Franchise Advertising Portals
The Internet
Franchise Trade Shows
Print Advertising
Processing and Qualifying Franchisee Leads
The Franchise Application
Qualifying the Franchise Candidate
Engaging with the Franchise Candidate
The Franchise Discovery Day
Finalizing the Franchise Transaction
International Franchising
Summary
Notes
Chapter 8: Franchisor Support and Services
The Importance of Franchisor Support
Pre-opening Assistance
Site Selection Assistance
Franchisee Training
Operational Services
The Franchise Opening
Franchise Marketing
Implementing Marketing Programs
Franchisee Advertising Funding
Franchisor Pricing: Mandated versus Suggested Retail Prices
Franchisor National Account Programs
Government Contracts
Franchisor Operations Support
Franchise Site Visit
The Franchisor Field Representative
Key Performance Indicators
Summary
Notes
Chapter 9: Franchise Relationship Management
The Phases of a Franchisee
Conflict Management between Franchisees and Franchisors
The Source of Franchisee Franchisor Conflicts
Tools for Managing Conflict in the Franchise Relationship
Effective Franchise Communication
Measuring Franchisee Performance
Measure Franchisee Satisfaction Levels
Additional FRM Tools
Franchisee Owners Associations and Franchise Advisory Councils
Avoiding and Managing Franchise Litigation
Preventing Disputes from Escalating into Franchise Litigation
Alternative Dispute Resolution
Arbitration
Mediation
The Franchise Mediation Program
Summary
Notes
Chapter 10: Franchise Trends
The Franchise Rule
The Great Recession
The Role of Technology in Franchise System Development and Operations
Franchise Development and Technology
Franchise Operations and Technology
Franchisee Performance Evaluation and Support in the Future
The Future Role of PE in Franchising
The Pandemic of 2020-2021
Summary
Notes
Index
