FOREIGN RELATED STUDY
According to the result of the franchisee motivation motivation survey conducted conducted by The Research Research Strategy Group, a Toronto-based, custom market research company. The first thing that the franchisees considered in choosing a franchise is the name recognition of the company. Then the franchise support and training, the ease of running the franchise, the franchising opportunity was already available; there is a lower risk and the concept that appealed the franchisees. RELEVANCE OF THE STUDY
The Research Strategy Group’s survey has bearing to the present study because this
study aims to find out if what are the major considerations that the franchisees needs to consider in choosing the franchise. (website) (website) Source:
http://www.franchise.org/uploadedFiles/Franchise_Industry/IFA_Store/Fran chisee%20Motivation%20Survey%20Report.pdf
FOREIGN RELATED LITERATURE
The study of Prof. A. Berndt of University of Johannesburg, Department of Marketing Management,
entitled
Franchisees
Satisfaction
among
Food
Franchises:
An
explanatory Study found that the major dimensions that satisfied the franchisees among food franchises are the brand image of the franchise and by the communication, which got the lowest mean score of 3.05 and 3.18 respectively. These responses indicate that from the franchisees perspective, the issues of brand image and communication are perceived positively, and presented the greatest areas of satisfaction in their franchising experience. The dimension with the highest mean score is the franchisee representative council 4.36, probably because some of the franchise chains do not have active councils. BUYING A FRANCHISE
Based on the Franchise Opportunities Handbook of U.S. Department of Commerce, there are many advantages and disadvantages that need to be explore before buying a franchise. Nonetheless, it is an excellent way to enter business as an owner or a manager and make a nice salary plus profit. There are many things to do before jumping into a franchise. The box checklist for evaluating a franchise points out that you should have a lawyer to evaluate the franchise. Remember, you are making a sizable financial investment. Furthermore, you have to analyze yourself, the franchise, and the market. Take some time to go over the checklist, it will help you understand many of the questions that franchisees should ask if they want a successful venture. CHECKLIST FOR EVALUATING A FRANCHISE THE FRANCHISE Did your lawyer approve the franchise contract you are considering after he or she studied it paragraph by paragraph? Does the franchise give you an exclusive territory for the length of the franchise?
Under what circumstances can you terminate the franchise contract and at what cost to you? If you sell your franchise, will you be compensated for your goodwill? If the franchisor sells the company, will your investment be protected? THE FRANCHISOR How many years the firm offering you a franchise been in operation? Has it a reputation for honestly and fair dealing among the local firms holding its franchise? Has the franchisor shown you any certified figures indicating exact net profits of one or more going firms that you personally checked yourself with the franchisee? Will the firm assist you with: A management management training training program? program? An employee employee training program? A public relation program? program? Capital? Credit? Merchandising ideas? Will the firm help you find a good location for your new business? Has the franchisor investigated you carefully enough to assure itself that you can successfully one of its franchises at a profit to both the franchisor and you? YOU-The Franchisee How much equity capital you have to have to purchase the franchise and operate it until your income equal your expenses?
Does the franchisor offer financing for a portion of the franchising fees? On what terms? Are you prepared to give up some independence independence of action to secure the advantages advantages offered by the franchise? Are you ready to spend much or all of the remainder of your business life with this franchisor, offering its product or service to your public? YOUR MARKET Have you made any study to determine whether the product or service that you propose to sell under franchise has a market in your territory at the prices you will have to charge? Will the population in the territory given you increase, remain static, or decrease over the next five years? Will the product or service you are considering be in greater demand, about the same, or less demand five years from now than today? What competition exists in you territory already for the product or service you contemplate selling? The study of Prof. A. Berndt of University of Johannesburg, Department of Marketing Management,
entitled
Franchisees
Satisfaction
among
Food
Franchises:
An
explanatory Study found that the major dimensions that satisfied the franchisees among food franchises are the brand image of the franchise and by the communication, which got the lowest mean score of 3.05 and 3.18 respectively. These responses indicate that from the franchisees perspective, the issues of brand image and communication are perceived positively, and presented the greatest areas of satisfaction in their franchising experience. The dimension with the highest mean score is the franchisee representative council 4.36, probably because some of the franchise chains do not have active councils.
RELEVANCE OF FOREIGN LITERATURE
Prof. A Berndt’s study has a relation with the present study because it would serve
as guide to the researchers to become successful with their study and it would give them clearer understanding about the research problem of franchisee considerations among food related franchises. Other than that there are other sectors in the franchising environment that could be involved in studies to determine the major franchisee consideration. The article about buying a franchise taken from the Franchise Opportunities Handbook of U.S. Department of Commerce has bearing to the present study because it give the checklist for evaluating a franchise so that the franchisees understand many of their questions about the things that they need to consider to have a successful venture.
Source:
(Book)Understanding Business- Second Edition By: Nickels and McHUGH (book) Franchise Opportunities Handbook, U.S. Department of Commerce (journal) Southern African Business Review Volume 13 Number 1 2009 (website )http://www.unisa.ac.za/contents/faculties/service_dept/docs/franchise_SAB
VI113chap1.pdf
