San Francisco coffee house: an american style franchise in croatia.
1.Franchising would be the best option for Tensek and Pavec . They will grow faster by franchising. The decision of it can help also them to serve the big population who is already informed about the company and wait it to open branches in different parts of country. Franchisor usually has company with well-known brand, and approximately good business model, so it could be transferred to another region, without creating something new, almost no financial costs for advertising. And the other plus is risk sharing. 2.I think there are strong companies in croatia that experienced and have a good reputation to become franchisors. Franchising its not always big investments, but its a good business model that can be implicated. In early 1990's McDonald's entered croatian market, so after that started discussions about advantages and disadvantages ob business model. McDonald's expanded throughout Croatia by opening its own, "company" restaurants or by sub- franchising to other locations. McDonald’s presentations in cities where the franchisor searched partners/franchisees generated great interest of potential franchisees with many questions referring to the nature of the franchise agreement offered by McDonald's, i.e. to the rights and obligations of both sides in a franchise relationship. Franchising has been present in Croatia since late 1970s, but first real promotion of this business model brought McDonald's. There are some factors that influencing franchise development in Croatia. Political factors: burreaucracy, insufficient protection of franchisor's rights, insufficient arbitrage usage, ineadequate intellectual property rights protection. Economic factors: Croatia is not well-known as tax-friendly country, insufficient economic development, market is small, lack of public institution support. Social factors: low standard of living, intellectual property rights violation, lack of...
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