Diverse Types of Franchises Strategies .


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Different Types of Franchises & Strategies. for Potential Franchisors and Franchisees. Early Franchise Entrants. 1898 - Automobile Manufacturers Division of responsibilities: - manufacturers - design & production - dealers: sales & service. Coca Cola Company. 1886 : coca-cola invented
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Diverse Types of Franchises & Strategies for Potential Franchisors and Franchisees

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Early Franchise Entrants 1898 - Automobile Manufacturers Division of duties: -makers - outline & creation -merchants: deals & benefit

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Coca Cola Company 1886 : coca-cola developed 1899 : Thomas & Whitehead 600-word contract guaranteed to open a packaging plant • 1901 : no funding to open the packaging plant … ? • 1919 : 1,000 diversified Coca-Cola bottlers

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Gas Stations 1930\'s - Depression Era Franchising First case of Conversion Franchising Taxation of all organization claimed service stations Why pay that? … . how about we FRANCHISE Also snappier nearby reaction to value changes

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Fast Food Fifties Harlin Sanders - corner store shut pumps: 142 seat eatery 1950\'s: turned down $164,000 1960 (200) 1980 (6,000) 2007: 13,433 KFC\'s overall • San Bernardino, CA 1940 • Dick & Mac McDonald • inspired by Henry Ford\'s sequential construction system • Ray Kroc - multi-blender sales representative • world\'s biggest chain of FF-rest\'s • over 31,000 areas around the world

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1960\'s, 1970\'s, 1980\'s, 1990\'s

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Franchising Timeline 1898 - General Motors, … Ford 1899 - Coca-Cola 1930 - Gas Stations 1952 - KFC: 13,433 1955 - McDonalds: 30,823 1964 - 7-Eleven: 31,680 1974 - Subway: 26,197 1980 - Mail Boxes Etc. 5,760 1995 - Curves: 9,882 2001 - Geeks On Call: 305

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Principles of Franchising 1,550 organization possessed eateries Revenues $1.69 billion Expenses $1.42 billion Pre-Tax Profit $270 million ( 16%) 4,550 diversified eateries Revenues $486 million (sovereignties) Expenses $ 78 million Pre-Tax Profit $408 million ( 84%)

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Types of Franchises Manufacturer-Retailer (auto & gas) = 70% of establishment deals Manufacturer-Wholesaler (coca-cola) = 3% of establishment deals Business Format (McDonalds, Hilton) = 27% of establishment deals Franchising in the Economy (1986) a year ago Dept. of Commerce gathered information how has diversifying advanced from that point forward?

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Franchisor Strategies Advantages Of The Franchise Model OPM extension establishment & sovereignty Fees influence IP resources effective market entrance Disadvantages Of The Franchise Model does not take care of existing issues starting advancement costs entering another business: new skill profile \'issues"

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Feasibillity Analysis Is the idea establishment capable? 4 showcasing P\'s: item, value, advancement, put Transferable PBS operations manual(s), preparing program, IP Management review administration profundity administration capacities Written assessment & appraisals operations, promoting, administration, money related

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Strategic Franchise Planning Developing an establishment framework Protecting IP Competitive situating & estimating Education & preparing Field administrations & bolster Franchise profile Franchise advertising

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Franchise Documentation Operations manual(s) Training program Legal documentation establishment contract, establishment offering round Franchise showcasing materials leaflet, application, public statements, website page Franchisor operations manual Franchise enlistment application(s)

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Dual Distribution & Expansion Strategies Dual Distribution blend of organization claimed versus diversified Expansion Strategies elite regions; geographic extension change diversifying: Mrs. Fields Cookies (1990) Snap On Tools (1991) Petroleum Stations (1930\'s) territory advancement ace diversifying - subfranchising universal diversifying

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Franchisee Strategies Industry Trend Investment Level Breakeven Point Working Hours Income Level Number of Employees Location & Lease Lifestyle & Image Master Franchisee, Area Developer Sell off franchise(s) & be a Franchisor

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