FRANCHISE BUSINESS
MANAGEMENT
ASSIGNMENT 3
ECB 30303
ME 20
PREPARED BY :
NUR DAMIA ATYIERAH BINTI ASHNIZAL (62212121091)
ARIFF AQMAR BIN AZIZAN (62212121092)
ADIBA BINTI MARZUKI (6221221008)
ADAM BIN AHAMED (62212121056)
PREPARED FOR : MADAM NOOR ASHIKIN BINTI MOHD ROM
Discuss the critical elements for a
successful franchise business
Organization
Franchisees should ensure that employees have
sufficient knowledge to provide sound advice and
quality customer service.
Consistantcy
A successful franchise is when we can
maintaining our product or services consistantly
without having any issues about serving to the
customer and expect to meet their satisfaction
Market position
We need to able to provide a product that when
there is need and really show customer how we
are fulfillig that need for them.
Leadership Loyal Clear brand
Customer idenity
To run a A loyal customer To be successful
will give the big
successful impact for the
franchise
business we need
franchise company to find a business
network, because they
will become a
that already have
a strong brand
franchisees repeat buyer identity, so that
need a also they might these brand or
guidance and influence the company are
quickly
expertise potential buyer recognized by
like their friend
from their family and new or existing
customer
franchisor college
What is global
franchising ?
Known as Master Franchising or
Master Licensing, is a method of
expansion that new or established Global Franchising is an opportunity
franchises can use to move into new for an existing company or franchise
geographical areas and markets. to expand their operations in a
model that poses significantly less
risk and offers higher rates of
Involves selling the franchise rights to success than company-owned
a third party to operate as the expansion.
master franchisee in that area,
giving them the rights to open
company-owned outlets and sub-
franchise in the country or region.
Types of Global Franchise
Model
Master Franchise Regional Franchising
In a master franchising model, the The target country is usually divided into
franchisor chooses a master franchisee regions, which are then operated
for the target country or region, and similarly to a master franchise, with each
awards them master franchise rights, region containing a regional master
which are usually very similar to the franchisee, and sub-franchisees below
rights of a franchisor in a local franchise them.
system, in exchange for a larger
investment in the franchise.
Regional Franchising
Direct Franchising is a franchise model where the
franchisor retains control and licensing of the
franchise completely. Direct franchising requires a
lot of resources and time on the part of the
franchisor, as they will be providing the same level
of training, recruitment and support to franchisees.
is usually carried out remotely due to the
centralised nature of the model, and works better in
expansion to markets with similar cultures,
languages, legal systems and regulations,
Current status of global
franchise
40 countries in the world The total number of franchise
such as those in the Asia and sales have increased greatly
North America regions have over the years, with a 10%
created franchise sales increase and generating
associations, indicating the 3.7 billion dollars in sale,
growth of franchising playing a significant part in
activities. economic growth.
The total number of companies The sectors that are growing
have grown over the years as the most globally are
well, with 3 regions having the restaurants, various services
largest number of franchise and retailing. Sectors such as
company, making the number restaurants are growing
increase 66% in terms of median rapidly in regions like US and
number of franchisors. Japan.
Future challenges
Economic problems in other countries make it difficult
to spread franchise business, such as countries with an
unstable economy or suffering from recession.
Concerns regarding finding qualified staff necessary to
spread franchise globally in some region regarding
expanding the business.
Political issues in other countries pose a problem as
well as legal conduct can prevent franchise from
entering country's market.
The ever changing trends, socio cultural and interests
in other regions globally can impact certain franchise
and causing franchise business to constantly innovate
new business ideas.
Thank You
