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Module 1 - Franchising

The document defines key terms related to franchising such as franchisor, franchisee, and royalty fee. It lists 5 advantages of franchising including business assistance from the franchisor and brand recognition. 5 disadvantages are also provided such as restricting regulations and initial costs. 20 examples of franchises in the Philippines are given ranging from Jollibee to Potato Corner. Finally, the document poses 5 essay questions about franchising that discuss whether it is hard to manage, advantages of specific franchises, disadvantages for franchisees, and starting a franchise versus own business.

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Lorie Anne Valle
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101 views2 pages

Module 1 - Franchising

The document defines key terms related to franchising such as franchisor, franchisee, and royalty fee. It lists 5 advantages of franchising including business assistance from the franchisor and brand recognition. 5 disadvantages are also provided such as restricting regulations and initial costs. 20 examples of franchises in the Philippines are given ranging from Jollibee to Potato Corner. Finally, the document poses 5 essay questions about franchising that discuss whether it is hard to manage, advantages of specific franchises, disadvantages for franchisees, and starting a franchise versus own business.

Uploaded by

Lorie Anne Valle
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Module 1:

1. Definition of Terms:
a. Franchising- a method of distributing products or services involving
a franchisor, who establishes the brand's trademark or trade name and
a business system, and a franchisee, who pays a royalty and often an
initial fee for the right to do business under the franchisor's name and
system.
b. Franchisee-  a small-business owner who operates a franchise.
c. Franchisor- a person or company that grants the licence to a third party
for the conducting of business under their brand name.
d. Royalty Fee- the monthly re-occurring fee a franchisee pays to the
franchisor.
2. Give 5 advantages of Franchising
-Business assistance they receive from the franchisor.

-Brand recognition

-Lower failure rate

-Buying power

-Lower risk

3. Give 5 disadvantages of Franchising


-Restricting regulations
-Initial cost
-Ongoing investment
-Potential for conflict
-Lack of financial privacy
4. Give 20 franchises in the Philippines
 1. Jollibee
 2. McDonald’s
 3. 7-Eleven 
 4. Andok’s
 5. Belgian Waffles
 6. Bon Appetea
 7. Chowking
 8. Goldilocks
 9. Goto King
 10. Greenwich
 11. Happy~Haus Donuts
 12. Julie’s Bakeshop
 13. Mang Inasal
 14. Master Siomai
 15. Minute Burger
 16. Mr. Liempo
 17. Potato Corner
 18. Rice In a Box
 19. Star Frappe
 20. Tender Juicy Hotdog

5. ESSAY:

1. Does franchising hard to manage?


Running your own franchise is still hard work, and there are drawbacks to
opening a business that requires operating by someone else's rules.
2. If you are a businessman/businesswoman what Philippine Franchise
would you start? Explain.
I franchise Jollibee or Mcdonalds, because the demand of both fastfoods
are stagnant or high. It may cost higher than other franchise, but the profit
can easily redeem after sometimes since the brand has built its own to
the market.
3. Will you buy a franchise with low franchising fee or not?
Yes, low franchising fee is a good opportunity to invest on. There are
franchises that are high cost. So, why not to take that opportunity to start
a business.
4. What are the disadvantages of Franchisee?
While a franchise allows the franchisee to be their own boss, they’re not
entirely in control of their business, nor can they make decisions without
taking into account the opinion of the franchisor.
For most franchisees, the most frustrating disadvantage that they face is
that they must follow the restrictions laid out in the franchise agreement.
The franchisor can exert a degree of control over the majority of the
franchise business and decisions made by the franchisee.
5. Will you start your own business or own a franchise?
Franchises have a higher rate of success than start-up
businesses.It may cost less to buy a franchise than start your own
business of the same type. Franchises often have an established
reputation and image, proven management and work practices, access to
national advertising and ongoing support.

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