Thesis: Chapter2 and 3
CHAPTER II
REVIEW OF RELATED LITERATURE
Franchising is defined as a business model wherein the owner of the business (franchisor) gives the independent operator (franchisee) the right to distribute his product, apply his business techniques and use his brand and/or trademark in the conduct of the business. With such a business model, the business owner can maximize their business’ profit potential in a shorter time compared to other more traditional business models. In franchise business, it is not only the products or service that the franchisee can avail; it is more of the system-the business plan of the chosen franchise. It is fact that before franchise companies offer their business packages, they already conducted strenuous researches and studies to test the capability of the franchise to withstand the various factors that might affect the operation of the business. Simply put, franchise business offers a time-tested business plan.
When entrepreneurs think of franchising, food is often the first thing that comes to mind. Most of the world’s biggest restaurant concepts are all franchised businesses. This chapter focuses on study and literature readings of franchising business specially food franchising. Different report related to this research will help researcher educate themselves to the different aspect of purchasing a food franchise.
FOREIGN LITERATURE
Since 1950s, food establishments have quickly become the most popular sector in franchising. In U.S. as the nation’s economic environment hold steady, franchising continues to exhibit its positive influence.
According to William Rosenberg International Center of Franchising at the University of New Hampshire Whittemore School of Business and Economics, “Franchised Businesses create more value and perform better financially than their non-franchised competitors”.
The study found that over the 10 year period, U.S. public restaurant franchisor have created more value than their non-franchising
REVIEW OF RELATED LITERATURE
Franchising is defined as a business model wherein the owner of the business (franchisor) gives the independent operator (franchisee) the right to distribute his product, apply his business techniques and use his brand and/or trademark in the conduct of the business. With such a business model, the business owner can maximize their business’ profit potential in a shorter time compared to other more traditional business models. In franchise business, it is not only the products or service that the franchisee can avail; it is more of the system-the business plan of the chosen franchise. It is fact that before franchise companies offer their business packages, they already conducted strenuous researches and studies to test the capability of the franchise to withstand the various factors that might affect the operation of the business. Simply put, franchise business offers a time-tested business plan.
When entrepreneurs think of franchising, food is often the first thing that comes to mind. Most of the world’s biggest restaurant concepts are all franchised businesses. This chapter focuses on study and literature readings of franchising business specially food franchising. Different report related to this research will help researcher educate themselves to the different aspect of purchasing a food franchise.
FOREIGN LITERATURE
Since 1950s, food establishments have quickly become the most popular sector in franchising. In U.S. as the nation’s economic environment hold steady, franchising continues to exhibit its positive influence.
According to William Rosenberg International Center of Franchising at the University of New Hampshire Whittemore School of Business and Economics, “Franchised Businesses create more value and perform better financially than their non-franchised competitors”.
The study found that over the 10 year period, U.S. public restaurant franchisor have created more value than their non-franchising