Franchise Business Model Research Articles

A Research Study on Effective Growth of Franchise Business Model in Cafe & Restaurant Sector in Ahemdabad City

The growth of the franchise business model in the café and restaurant sector in Ahmedabad is examined in this study, with a focus on franchisee perceptions across different age groups. Data from 172 franchisees were analyzed using a quantitative approach to test ten alternate hypotheses related to operational aspects such as training adequacy, brand recognition, and market competition. The results revealed consistent perceptions among franchisees, with no significant differences across age demographics. Specifically, franchisees uniformly accepted perceptions regarding the effectiveness of the franchise model, adequacy of support, and the influence of brand recognition, indicating a strong alignment in understanding the model's benefits. However, the findings also emphasized significant competition from local independent cafés, highlighting the need for strategic adaptations. The study's practical implications suggest that franchisors should prioritize standardized training and support systems, improve marketing strategies, and cultivate strong franchisee-franchisor relationships to drive growth. The research underscores the importance of addressing competitive dynamics and continuously improving support systems. Future research is recommended to explore longitudinal impacts, diverse demographic influences, and the integration of digital transformation within franchise operations. This study provides valuable insights into franchise effectiveness, offering guidance for practitioners seeking to optimize franchise performance in the café and restaurant sector

Legal Protection and Justice for Franchise Business Operators from an Islamic Law Perspective

This study discusses strategies to enhance the economic well-being of the community through engagement in entrepreneurship, especially through the franchise business model. Franchising is a marketing strategy for rapidly expanding businesses through the concept of cooperation. Legal protection for franchise business operators is crucial in maintaining a balance between the parties involved. Although there are no specific verses about franchising in the Quran, the principles of business ethics, justice, and compliance with Islamic law are essential foundations that should be applied in all forms of business transactions, including franchising. This study uses an empirical juridical legal approach to explore the concept of franchising, Islamic legal principles, and the impact of legal protection on franchise business operators. The results of this research are expected to make a significant contribution to advancing the legal discourse related to franchise business and Islamic law in Indonesia.Legal protection helps franchise business operators manage risks and conduct business in accordance with the principles of justice and business ethics, from both Islamic and general legal perspectives. Islamic and general law play a crucial role in shaping a fair, orderly, and sustainable franchise business environment. With a clear and consistent framework, franchise business operators can focus on the development and growth of their businesses. Thus, legal protection serves as a strong foundation for sustainable franchise business growth in Indonesia and makes a positive contribution to the economy and society as a whole. Franchise businesses can be a suitable form of enterprise that aligns with the values and principles of Islamic economics, providing a positive contribution to the economy and society overall.

Conceptual Models of Franchisee Behaviors in the Dietary Supplements and Cosmetics to Imply the Business Investments

Franchise businesses have demonstrated resilience before, through, and after the circumstances of COVID-19. This can be attributed to the inherent appeal of rapid success and risk mitigation for investors. Therefore, investors are attached to engaging in a franchise business model. Fierce competition exists among franchise businesses, with numerous brands within the same industry, especially the cosmetic and dietary supplement franchise category, which has garnered significant popularity in Southeast Asia, particularly Thailand. The expansion of this franchise category has accelerated, surpassing the growth rates observed in other countries. Investment decisions across various investor levels are influenced by diverse factors, including intense competition, contributing to the rapid expansion. Therefore, a comprehensive study and understanding of the investment behavior of cosmetic and dietary supplement franchise businesses has become imperative. The success of a franchise business hinges on different factors encompassing decisions made before, during, and after investments. This study delves into the decision-making behaviors preceding and following investments across different investor levels in the cosmetics and dietary supplement franchise industry, utilizing fundamental aspects derived from rational choice theory (RCT) and additional variables. The researcher gathered responses through questionnaires from 490 respondents with investment experience in the cosmetics and dietary supplement franchise business. The study revealed that factors postulated in this study significantly influenced investment choices within cosmetics and dietary supplement franchises. When segmented based on investor levels, distinct considerations emerged for each group. Furthermore, there is a compelling need for cosmetic and dietary supplement franchise owners to implement enhancements in services to uphold and expand investor bases, representing an intense challenge in the cosmetics and dietary supplement franchise business nowadays. This study is intended only for individuals with prior investment experience in the cosmetics and dietary supplement franchise industry. It focuses on examining the factors that influence investment decisions both before and after the initial investment, particularly with regard to dietary supplement and cosmetics franchises.

Problems and Challenges Faced By Franchise Model

Abstract: This research report titled "Problems and Challenges faced by Franchise Model" delves into the intricacies of the franchise business model, it is aiming to know the problems and challenges faced by franchisee, to know how franchisee taker tackled problems and challenges, to know which kind of strategy use franchise taker for marketing and improvement. The study employs a descriptive and research design with a focus on individual franchise holders in Ahmedabad, utilizing primary data collection methods such as Google Forms and personal interviews. Secondary data from previous research papers and magazines supplements the analysis. Statistical tools like Microsoft Excel 2021, SPSS, and Google Forms aid in data analysis. Despite constraints like limited time and geographic scope, the study offers valuable insights for stakeholders in the franchise industry. Findings from this research can enhance operational efficiency, inform decision-making, and contribute to sustainable growth within the franchise model. In conclusion, while operating a franchise presents various challenges, strategic focus on areas such as maintaining consistency in quality, investing in training and skill development, and enhancing online presence can greatly contribute to success. Franchisees who prioritize adherence to brand standards, adaptability to local markets, and foster strong relationships with both franchisors and employees stand a better chance of overcoming barriers and thriving in their businesses

Franchising as a form of entrepreneurial activity in Ukraine: realities and prospects

The article is devoted to the study and analysis of franchising as an effective tool for entrepreneurial activity. The state and prospects for the development of the franchising business model in the Ukrainian economy have been studied. Before the full-scale invasion of russia into the territory of Ukraine, the franchising market was developing dynamically in almost all sectors of the economy, despite the coronavirus crisis. In recent years, franchising has become the most popular in Ukraine in the field of consumer services, public catering and retail trade. The franchising market provides a great advantage for the development of the national economy. The current state of franchising in Ukraine, its positive aspects and opportunities for future growth are revealed. It can be the beginning of the development of small and joint ventures that will focus on innovation. Like any form of cooperation, franchising has its advantages and disadvantages that need to be taken into account. Now the development of the Ukrainian economy is a sensitive issue due to the war started by russia. Without activity in the economic sphere, the full functioning of the state is impossible. As a result of the military conflict, Ukrainian enterprises began to expand in Europe, which created the basis for the formation of a market for Ukrainian franchises. In safer regions of Ukraine, relocated businesses received a significant increase in income. With the stabilization of the situation in the country, entrepreneurs will have the opportunity to open their own businesses. In general, the Ukrainian franchising business offers ample opportunities for further growth and development. Entrepreneurs who understand the benefits of franchising and know how to effectively use its potential can achieve success in both domestic and international markets. However, it is important to carefully select franchisees, conduct a detailed analysis of the terms of the deal before launching the business. Despite the existing difficulties in implementing a franchising project, the number of “quality” franchises and conscientious franchisors in Ukraine is increasing every year. New initiatives are emerging that are successfully developing not only in Ukraine, but also abroad. This indicates that in the near future, the franchising market in our country will move to a new stage of development.

Analisis Aspek Hukum Perjanjian Waralaba (Franchise) Dalam Perspektif Hukum Perdata

Currently, franchise business schemes are being widely used in society. Franchising, as a form of business investment, requires clear regulations to protect the rights and obligations of the parties involved. The main aim of this research is to provide a more comprehensive view of the legal implications in the franchise business model. The method used is normative juridical. The results of this research found that the importance of understanding Article 1320 of the Civil Code is fundamental in upholding the validity of franchise agreements, where conformity with the law is the main basis. Regulations such as PP Number 42 of 2007 and Minister of Trade Regulation Number 12/M-Dag/Per/3/2006 provide more detailed guidance regarding procedures, rights, obligations and procedures for registering franchise businesses.

The Integration and Development of Franchising in China Take InterContinental Hotel as an Example

This paper has conducted in-depth research on the franchise business model of InterContinental Hotels and its application in the Chinese hotel industry. Using the franchise business model has brought benefits to InterContinental Hotels, including brand expansion, increased market share, additional revenue streams, resource consolidation, and risk sharing. Through the SWOT analysis, this paper analyses the strengths of Intercontinental Hotels high brand awareness, including perfect comprehensive facilities, broad global distribution network; the weakness include high franchise costs, strict operating standards; the opportunities include market demand growth, opportunities and economic fluctuations needed for emerging market expansion, and the threats include strong competitors, and put forward the use of InterContinental Liquor. The brand advantage of the hotel enhances the user experience and explores the development strategy of new market opportunities. The article has also discussed the applicability of the franchise business model and the role of the government in franchise development. At the same time, this experience has extensively explored the franchise business model of InterContinental Hotels and its application in the Chinese hotel industry.

Franchise Dynamics: A Comprehensive Research on Ownership Models and Operational Resilience in the Post-COVID Landscape

This study explores the franchising business model post-pandemic, focusing on the four major types of franchising: COFO (Company Owned Franchise Operated), FOFO (Franchise Owned Franchise Operated), FOCO (Franchise Owned Company Operated), and FICO (Franchise Invested Company Operated). The study examines the factors that have impacted the franchising industry during and after the pandemic, as well as the challenges and opportunities that franchisors and franchisees face in the current environment. The study also investigates the performance of the four franchising types during and after the pandemic, and identifies the key factors that have contributed to the success of some franchisors and franchisees more than others. Keywords: franchising, post-pandemic, business model, ownership and performance factors

Функционирование системы дистанционного образования через образовательный франчайзинг

In the context of rapid digitalization and difficult competition, educational organizations wishing to implement their programs face new difficulties, the correct solution of which significantly contributes to increasing the prestige of the university. In the article, the authors describe the peculiarities of the functioning of the franchising model in the education system, cite negative and positive elements of franchising in the higher education system, analyze the results of the integrated use of distance technologies in education and the franchising system, and also consider the prospects for introducing such a system on the example of the Mordovia Republic. Examples of the diverse use of the franchise system on the bases of higher education organizations are given. The article notes the unconditional advantage of distance learning technologies during the COVID-19 pandemic and the prospects for future use. The article focused on the use of educational franchising not only for educational organizations that implement their educational services through it, but also for potential consumers of educational services. The authors confirm that the use of the distance education system through educational franchising will increase the development potential of the franchising business model both in the Republic and throughout the RF.

Examination of Franchisee Relationship Management in the Retail Pharmacy Industry

Abstract In response to increasing market competition, the franchise business model has become a common operational strategy in the rapidly developing chain pharmacy industry. Franchising would enable pharmacy businesses to gain a competitive advantage as societal aging progresses. However, the relationship between franchise headquarters and franchisees must be developed to improve the relationship value of the operation management within the franchise chain and to promote higher relationship quality between franchisees and franchise headquarters. If the relationship between the two parties is strengthened, the franchisee will be able to enhance self-management; this will further strengthen the close cooperative relationship between the two. In this study, Taiwanese chain pharmacies were selected as the research targets. The results revealed that stable relationship management can strengthen the cooperative relationship between franchise headquarters and franchisees and maximize the value of the relationship. JEL classification numbers: L10. Keywords: Franchisee, Retail Pharmacy Industry, Relationship Governance, Relationship Quality, Relationship Value.

Hey, Emerging Franchisor! How Does Franchising Get Its Sexy Back?

In this article, the author provides a unique perspective on the future of franchising and the role to be played by emerging markets. For many years, the franchise business model has been applied because it is seen as a “Sexy” and proven method for accelerating the growth and profitability of small businesses. Is it possible that accelerated growth and profitability have been outweighed by franchise market saturation? If so, how do you get franchising’s “Sexy” back? Franchising in emerging markets is the answer!

Why Franchising is a Smart Business Tool?

In the world today establishing your own business is challenging since it entails significant risk, is tough, and costs a lot of money. Franchises, on the other hand, are more successful than starting your brand. A franchise carries less risk than a start-up company does. In the franchising business model, the owner of a business system (franchisor) grants permission to a person or a group (franchisee) to operate a business selling goods or services using the franchisor's system and brand name. Since most fast food chains and luxury clothing companies operate using this business model, they are quite well-known around the world and have locations in most nations and cities. This research paper gives an outline of Franchising, what it is, its advantages, its disadvantages, and growth. With this paper an individual would be able to decide if he should go for a startup or franchising business model

Investment dimension of franchising

Introduction. The franchise business model is developing in the conditions of insufficient financial support, ambiguity of the legal frame­work and insurance. Problem. This requires improvement of the investment model, based on the proven advan­tages of such a business format, taking into account the peculiarities of the external environ­ment of Ukraine under the pressure of the factors of the COVID-19 pandemic and the introduction of martial law, substantiation of modern tools for assessing the effectiveness of investments in such business objects. The aim of the article is to substantiate the modern model of evaluating the effectiveness of investments in franchise projects in Ukraine, ta­king into account the factors of force majeure and the main trends of its development, corre­lation of the features of the parameters of the formation of investment capital and the assess­ment of its value. Methods. General scientific methods such as formalization, historical, abstraction, generally logical (analysis, synthesis, induction, deduction), generalization and convergence, introduction from the abstract to the concrete; specific socio-economic methods based on a dialectical app­roach to knowledge of the essence and develop­ment of the corresponding object and subject were applied in the paper. Results. Franchising has had a positive effect on the relative stability of the business landscape during the period of martial law. It has caused the expansion of the boundaries of the entre­preneurial activity of national business entities, with their inclusion in a ready-made business with a formed client base and the potential for profit with lower risks. In the business environ­ment, a systematic approach to the formation of new formats is acquired, where franchising is considered as a strategic decision. Conclusions. The current state of franchi­sing development is aimed at creating a compe­titive business environment. Trends in the fran­chising market during the period of martial law are a target tool for achieving the necessary level of economic and national security as a whole. In the system of anti-crisis measures, franchising is one of the most investment-attractive tools.

Feasibility study of a hotel franchise business model

Feasibility study of a hotel franchise business model

Franchising as a strategy for job creation in the clothing sector: A case study of Walvis Bay

The franchise business model enjoys much support in both developed and developing countries. It is considered by many as a key contributor to economic growth and is also perceived as a vital vehicle for job creation. Unemployment rates in Namibia are currently a cause for concern and approaches are needed to stimulate job creation. This study reports on perceptions of franchising as a job creation strategy within the Walvis Bay area. The study employed a mixed method research design and used a survey questionnaire and semi-structured interviews to collect data. A total sample of n=110 completed the questionnaire, while n=6 participants were interviewed. The study results indicate a rapid growth and awareness of the franchise model in the food sector, while less growth was evident in the clothing sector. The franchise model was however, seen as a key avenue for stimulating economic growth and viable job creation strategy. Stronger incentivization is recommended, specifically in the areas of tax exemptions, export processing zones, introduction of specific franchise legislation and more expansive monetary and fiscal policies.

The principles of improving the development of franchise business in Ukraine

Methods. The research results were obtained using general and specific scientific methods and scientific approaches, namely: methods of abstraction and comparison, logical-analytical analysis - for diagnosing the state and evaluating the development of entrepreneurship, as well as developing a model for choosing a potential franchise for franchisees; the method of theoretical generalization - to substantiate the systematization and organization of the franchising business model process; deduction - when formulating general conclusions. Results. The paper analyzes the current state of franchising business development in Ukraine, on the basis of which there is identified the need to significantly increase the efficiency of the application of the organizational plane in the general structure of the business model of choosing a franchise, and the emphasis is placed on the effectiveness of state policy, the creation of regulatory and legal support for the process of formation and development of national franchise business. On the basis of the research, the main prospects for the development of franchise business in Ukraine have been determined. The most important influencing factors on the development of the franchise business model are substantiated, and the operational order of choosing a franchise is determined. It is indicated that such a business model consists of organizational and cause-effect planes, which are formed in space and time coordinates. There is emphasized the need to identify the economic and social effects caused by their phased implementation at the organizational level, which in its turn has natural reverse aftereffects. Novelty. The research is aimed at finding new, more effective ways of developing franchise business in the Ukrainian economy. The author proposed the systematization and organization of the business process in order to form an effective portrait of the franchise model, and also for franchisees there has been created a step-by-step activity business model for choosing a potential franchise. Practical value consists in the development of recommendations for the effective development of the national franchise business.

A CASE STUDY ON GLOBAL BUSINESS OF SPORTS LEAGUE

Huge investments have been carried out in sports teams and professional sports leagues all over the world. There are different sports that are popular in different parts of the world. In the United States, it's American Football, in Europe and UK it is Football (soccer); in the Indian sub-continent and Australia, it is Cricket that attracts the largest crowd. The research analyses this business of investments in sports leagues around the world. The paper looks at the potential interest in investing in clubs and team franchises of sports leagues. The aim of this paper was to find out the attractiveness and risks, economically and financially, involved in the Global business of sports leagues and the Involvement of business in the field of sports and critically analyze different business models used in the field of sports leagues for conducting business globally. The research utilized the primary data through questionnaires, case studies, and secondary data through government agencies like the census bureau, information compiled for sale by commercial vendors, data published by universities, government, equity research, reports, trade association newsletter, etc. The research concluded sports have always been a unique game of business for players and investing organizations. However, the research recommended the franchise business model used for the business is the appropriate model for conducting business in the field of sports leagues.

“Jute Cottage” at crossroads: succession dilemma

Learning outcomes After reading this case, the students will be able to comprehend the conceptual framework of entrepreneurial learning to tap business opportunities; identify the challenges of small businesses; understand the structure of the franchise business model; and recognise the need for succession planning for business sustainability and evaluate various options for succession. Case overview/synopsis “Jute Cottage”, the two-decade-old brand, was operating through its own stores and franchise outlets. The brain behind the brand was Nasreen and her husband Bilal. Dire times led the duo, venture into this business. It was in 1992, the family had relocated from Kolkata and was trying to make a living in Bangalore. Nasreen joined as a teacher and her husband focused on his existing trading business in jute packaging material. This was when Nasreen tried selling jute bags from home that were bought from Kolkata. After a few years, when Bilal’s business had a setback, Nasreen thought of giving a push to her home business. This was how a business that was started at a small level grew slowly and steadily under Nasreen’s leadership to become a brand and reach the current level of owning four stores and 10 franchise outlets across South India. As Nasreen and Bilal were growing old and wanted to retire, they expected their only son, Ataullah, to take over the reins of their business. But to their dismay, he was not interested, as his focus was on movie-making and designing. Complexity academic level The case can be taught to MBA/PGDM students to give them experiential learning in the courses on Entrepreneurship and Strategy. It gives insight on how to tap the business opportunities, grow and sustain. The case also highlights the need for succession planning for business continuity. Supplementary materials Teaching notes are available for educators only. Subject code CSS 3: Entrepreneurship.

Development and opportunities of the franchising business model, methods of remote management of smart franchises

Thanks to the business relations built on the basis of franchising, the competitiveness indicator is growing not only for individual market participants, but also for the entire created network. With all the above positive aspects, it is important to take into account such branches as: system management, marketing and strategic plans. The paper considers and notes that with all the positive aspects of the franchise business model, it is important to take into account such branches as: system management, marketing and strategic plans.

Франчайзинг в Україні: реалії та перспективи розвитку в умовах воєнного стану

The article is aimed at studying the development of franchising in Ukraine in the prewar period, as well as its realities, features and prospects for development under martial law. It is noted that after the declaration of martial law on the territory of Ukraine and the beginning of the active phase of military actions, most of the business was actually paralyzed due to various factors and the impossibility of carrying out economic activities by enterprises located in the territory of hostilities. Instead, franchising is an up-to-date economic model for organizing and carrying out entrepreneurial activities that will allow businesses to survive and develop in this difficult time for the country. The accomplished analysis of the dynamics of franchising in Ukraine for 2017–2020 showed that franchising has been slowly but steadily developing in recent years, which justifies the annual increase in the number of franchisers and franchised facilities, an increase in the number of domestic and foreign brands in the franchise market. Precisely the increase in the share of Ukrainian franchises has been determined, since the franchise business model itself better takes into account local realities. The franchising created in Ukraine is more adapted to local market requirements; Ukrainian franchises are competitive, have a comprehensive business development program and strong support after the launch of a franchise project; the domestic franchising is directed towards further cooperation on a long-term basis. Based on a study by the financial portal Fibi, a rating of the best franchises in Ukraine in 2022 in trade, services and catering is compiled. It is also noted that during the wartime in Ukraine, some countries significantly simplified the rules for starting a business by Ukrainians, which facilitates the creation of a market for Ukrainian franchises abroad and the spread of national brands. It is defined that in order to support the Ukrainian economy during martial law, the government has introduced comprehensive changes to legislation and State-supported programs, which will help the development of entrepreneurship and the spread of franchising.