Problems encountered in selected food cart franchising business in the University belt: an assessment - Presentation Transcript 1.
B ackground of the study Franchising is often defined as being in business for yourself but not by yourself. It is route to expansion where there is a franchisor and a franchisee that enters into a franchisee agreement, although both parties have a contractual relationship, one that enhances and sustains the success of franchising. It gives the business a distinct ability to expand and grow through the commitment and resources of entrepreneurs who have a stake in the business. Their commitment to the business is more than any manager or employee who gets paid their salaries regardless of sales and costs. The franchisee is precisely concerned with these because his profit and returns depend on them. 5.
Franchising is the fastest growing way of doing business. It has become the most important and popular method of creating business. It has now become a phenomenon worldwide. According to the Philippines franchise association, franchising is duplicating the success of your own business through the proven franchising formula. Most of the people who have no experience in business wanted to get into franchising in the Philippines, mainly because it gives freedom and opportunity to invest money without much effort of researching of target market of the business. 6.
In 1995, the Philippines retailers association, through the initiative and vision of its president Samie Lim, broke new grounds and made history when they organized the first Philippine franchise convention. The conventions objectives were two pronged one, introduced and explain the concept of franchising to as many people as possible in order to spread the benefits that many Americans who have become entrepreneurs and business man in their own right thou franchising have experienced and to introduce new Americans franchises to the local market. Food cart franchising business in the Philippines is one of the most popular businesses today. 7.
A lot of entrepreneurs today go into the food cart business despite of the possible problem they might encounter, first, because it's cheaper compare to the other type of business, and second it’s easier to put up than restaurants. In fact, even big fast-food chains are using food carts for their events or promotions. Another reason is that depending on the target market and marketing strategy, you can make a food cart either mobile or stationary. We can see that there are a lot of food cart businesses today grow rapidly in metro manila, especially at those area that is near in Schools, malls, MRT/LRT stations etc. 8.
Like in the University belt most of the businesses are more into food and there are almost 400,000 plus of students population from different campuses.., it gives an opportunity to a lot of entrepreneurs to put up a food cart businesses in this area. This thesis focuses also the role of the franchisor and franchisee. ( These two persons represent the two levels of people involved in franchising) We have on the first level the franchisor who lends his trademark or a trade name and a business system. (IFA 2009a). 9.
And on the second level the franchisee who pays a royalty and often an initial fee for the right to do the business under the franchisor’s name and system. (IFA 2009a). More particularly, we want to examine what are those problems they most often encountered in a food cart franchising business, and reason why a lot of entrepreneurs are growing despite of the risk in franchising. 10.
S tatement of the problem The study aimed to get an idea and get broad and fully documented information from the respondents in the area of the University belt, based on the questions provided by the researcher regarding in food cart franchising business This study looks also into the profile of the franchisee. , and what is the main problem encountered mostly by the...
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