103-PP16 - Fixtures and equipment assistance • Training • Opening support • Promotional assistance • Economies of scale • Ongoing support

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
© 2011, Educational Institute Chapter 16 Franchising Is Big Business Hospitality Today: An Introduction Seventh Edition (103TXT or 103CIN)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
© 2011, Educational Institute 2 Competencies for Franchising Is Big Business 1. Explain what a franchise is, describe types of franchises, summarize the history of franchising, and explain how franchising works. 2. State common reasons individuals give for wanting to buy a franchise, outline the advantages and disadvantages of owning a franchise, list advantages and disadvantages for franchisors, and summarize other franchising issues.
Background image of page 2
© 2011, Educational Institute 3 Types of Franchises Product or trade-name Business format
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
© 2011, Educational Institute 4 Why Buy a Franchise? Self management Financial independence Career advancement New skills/training Long-term investment
Background image of page 4
© 2011, Educational Institute 5 Advantages for Franchisees Site-selection assistance Credit Construction expertise
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 6
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 8
Background image of page 9
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Fixtures and equipment assistance • Training • Opening support • Promotional assistance • Economies of scale • Ongoing support © 2011, Educational Institute 6 Disadvantages for Franchisees • Restrictions • Unwanted products or procedures • Unwanted advertising • Unprotected territories • Cancellation • Inadequate training © 2011, Educational Institute 7 Advantages for Franchisors • Little or no capital required for expansion • Quick expansion possible • Franchisees shoulder investment risk • Unit owners connected to local community © 2011, Educational Institute 8 Disadvantages for Franchisors • They give up the profits generated by the franchise units • They give up some control © 2011, Educational Institute 9 Other Franchising Issues • Encroachment • Financial violations • Contract violations • Mature markets • Outlets in nontraditional locations...
View Full Document

This note was uploaded on 10/13/2011 for the course MGT 101 taught by Professor Karen during the Spring '11 term at Missouri State University-Springfield.

Page1 / 9

103-PP16 - Fixtures and equipment assistance • Training • Opening support • Promotional assistance • Economies of scale • Ongoing support

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online