Franchising

Franchising is defined as a bloodline model wherein the owner of the business (franchisor) gives the indie operator ( certificati wholeness) the right to distri neverthelesse his product, apply his business techniques and use his brand and/or trademark in the conduct of the business. With such a business model, the business owner can maximize their business boodle potence in a shorter time comp ared to other much than traditional business models. In privilege business, it is not only the products or help that the certifye can avail it is more of the system-the business plan of the chosen liberty.It is fact that before franchise companies offer their business packages, they already conducted strenuous researches and studies to test the capability of the franchise to with suffer the various factors that might affect the operation of the business. Simply put, franchise business offers a tried and true business plan. When entrepreneurs think of franchising, viands is a go od deal the first subject that comes to mind. Most of the worlds biggest consume place concepts are all franchised businesses.This chapter focuses on study and literature readings of franchising business specially food franchising. Different treat related to this research willing help researcher educate themselves to the different aspect of purchasing a food franchise. Since 1950s, food establishments shit quickly become the most customary sector in franchising. In U. S. as the nations economic environment hold steady, franchising continues to exhibit its positive influence.According to William Rosenberg outside(a) Center of Franchising at the University of New Hampshire Whittemore School of Business and Economics, Franchised Businesses create more value and perform bump financially than their non-franchised competitors. The study found that over the 10 year period, U. S. public restaurant franchisor have created more value than their non-franchising competitors. Franchisin g firms minimize agency problems, and have access to cheaper capital, motivated valet de chambreagerial expertise, and better local trade knowledge, according to the report.Franchising has grown so fast since the 1950s that it is now pervasive in different deliverance around the world. In study commissioned by the International Franchise Association, PriceWaterhouseCoopers estimated that in 2001 there were more than 767,000 business establishment in the United States engaged in franchising, providing directly or indirectly more than 18 million jobs, over $506 billion in payroll, and over $1. 5 trillion of output. Franchising now dominates definite sectors of the U. S. economy, over 56 percent of quick-sevice restaurants are franchises.Franchising is also one of the fastest-growing U. S. xports, and it is now estimated that franchising will grow 12 to 14 percent per year in the future. The restaurant diligence has earned a reputation for luxuriously risk and noble rewards. Som e industry analysts claim a dubious 90 percent misfortune in the first year. Franchise restaurants based on proven systems have a high victor rate intimately 62 percent over four yearsthan independent operators. In U. S. the ordinary full-service restaurant in 2006 grossed $867,000. The restaurant industry is the U. S. largest employer after the government. The profitability of a food franchise of all time depends in their ability to provide satisfaction in their customers.Research indicates that consumers have strong preference about choosing where to eatwith 62 percent saying they look for environmentally friendly establishments, 70 percent compliments offerings not easily duplicated in their home kitchen and 83 percent express approval of healthier eating options at quick service eateries. The Success of food franchise can be put see to strong customer focus franchisees are selected and entrusted with a have a go at itd brand and the quality of product and service is never compromised. It is necessary that the franchisor offers its franchisees a comprehensive franchise system, with maximum support and reading.Entrepreneurial Failure The slip-up of Franchises, by Steve Michael, a professor of business administration at the University of Illinois at Urbana-Campaign, concluded that Franchisees are little likely to fail if they have been trained effectively by the franchisor. Franchises with the best, most robust training programs have the most successful franchisees. The length of the training program was significantly tied to the chance of failure. Those franchises with the shortest franchisee training programs were more likely to fail. Those with longer programs were more likely to gain ground.Michael Newman, president and founder of ABC, based in Citrus Heights, California, agrees and says training of franchisees was paramount from the word go. We realized real early on that everything is about training says Newman. Franchisees wishing good train ing in order to be successful out in the field. There are as many varieties of food franchises as there are types of foods. Investments can range from the very high end of hundreds of thousands of pesos for full-service restaurants, to a moderate capital outlay for vending machine.There are franchises that specialize in sandwiches, barbeque, burgers, pizza, ethnic foods, candy, ice cream, smoothies and many other types of foods. Food franchising is most often associated with restaurants and it is the best franchise because food and eating remain constant. In Maslows Hierarchy of inquires, survival needs is the first factor that man should satisfy. In here, nourishment of ones body is essential, not just because man wants to eat but rather man needs to eat in order to survive. Aside from being a need for human survival, food is the best franchise to engage in because people spend much for food.Plus, human choices of what kind of food or menu to offer are almost endless. Another goo d thing about food franchise is that, there are a lot of submit toable franchise packages that will fit your capital. Entrepreneurs can select from food carts, which is a good sound-up, or by kiosks and cafes. This type of food franchise do not require investors to dole out millions or hundreds of thousands pesos. Franchising has recently been named as one of the most outstanding and most successful business models in the country today.It has become so popular that we now have more than a thousand franchise Philippines brands (from just about 50 franchising brands during the 1980s). No wonder, the Philippines is now being dubbed as the Franchising Hub of Asia. Food franchise here in the Philippines is a good earning potential since the products are usually affordable and the taste suits the Filipino taste buds. The very simple explanation for this is that Filipinos love to eat good food. Investors can put their franchise near the schools and universities, transport terminals and e ven within shop malls.They can place their franchise anywhere, provided there is traffic or consumers who willing to pay for good taste meals. There is no doubt, that food business or franchise is a stable industry disdain the greet hit of economic recession. Entrepreneurs likely to think that competition in food franchise is stiff. Yes, of course. scarcely their edge depends on the quality and taste of the food. They have to make sure that they deal with the best franchise company who offer good food at good price. Food products should be clean, properly processed, and served in an appetizing way.Naturally, man will spend good money for a great meal. So, it is a stop that food franchise can stay sturdy and growing even if other business entities spirit bankruptcy. Everyone can afford to skip buying latest gadget, but it is a sure bet that, they cannot afford to skip food. As long as there are people around, then food industry stays. Today, even if the economy is down, is still the best time to buy a food franchise. Food business in the Philippines is one of the best investments but it does not promise a 100 percent success. made business often start with an idea an entrepreneur hatches, slowly builds up and takes to market. Planning and controlling often occupy the top of every aspiring businessmans to-do-list before they even starts leasing space and producing products. As it turns out, there are always exceptions to the rule, even in business. Take for instance Edgar Injap Sia. For him, fetching advantage of a great opportunity outweighs all the planning known to man, which why he took up a lazy mall in his hometown of Iloilo City without a plan on what to do with.After a fewer weeks of conceptualizing, Sia decided to put up a restaurant offering an Illonggo staple called inasal in a ciy that was already teeming with versions of the same product. But due to his relentless work ethic, Sias Mang Inasal Restaurant became a exact and dominant success in the Visayas region in no time. After establishing a good foothold in that region, he then set his sights on conquering the holy grail of every Filipino businessman taking his concept to Luzon, specifically the make-or-break capital city, Metro Manila.I was not very well-known(prenominal) with Manila, because I was born and raised in Visayas. I only visited once a year, and it was usually for very short stays. So I knew I was in for a quite a challenge taking Mang Inasal to Luzon, he said. Out of nowhere, Mang Inasal branches in Metro Manila had sprouted like mushrooms. Mang Inasals Founder Edgar Injap Sia shares the underground on making up in the big league. First, be brave and be hold. Second, innovate and start something new. Third, be ready for backbreaking work. Fourth, refuse to give up.Fifth, go slow and steady. Sixth, join reputable organizations. Seventh, stand out. Eight, continue to look for opportunities. Nothing is impossible with right attitude. Do not be intimidat ed by problems look at them as an opportunities for growth. Thats the entrepreneurial spirit of Mang Inasal Chairman and CEO, Edgar J. Sia II. In food franchise business commitment with the right attitude is one of the most important recipe. It is impossible to survive and succeed being a franchisee if you are not committed in your business.Sourcehttp//www.bison.com/press_ABCSeniors_06092008