Buys supplies from the franchisor or approved

Info icon This preview shows pages 8–12. Sign up to view the full content.

View Full Document Right Arrow Icon
Buys supplies from the franchisor or approved supplier Ü Gains instant name recognition Ü Assigns a market territory Ü Provides training and support Ü May provide advice and financial aid Ü Supplies needed merchandise Ü Gains business expansion using other capital 1.2.1
Image of page 8

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

View Full Document Right Arrow Icon
9 International franchising is likely to succeed when certain market conditions exist : ¡ The franchisor has been successful domestically because of unique products and advantageous operating procedures and systems . ¡ The factors that contributed to domestic success are transferable to foreign locations . ¡ Foreign investors must be interested in entering into franchise agreements . 1.2.1 The Mechanism of Franchising
Image of page 9
Franchise Success Versus Independent Business Success 10 97 91 90 62 23 18 0 25 50 75 100 10 Years Independent business Franchised business 5 Years 1 Year Independent business Franchised business 1.2.1
Image of page 10

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

View Full Document Right Arrow Icon
Joint Venture A joint venture is a special type of strategic alliance in which two or more firms join together to create a new business entity that is legally separate and distinct from its parents . A special type of strategy alliance in which the partners share in ownership of an operation on an equity basis Usually , the proportion of the investment determines the percentage in the ownership in the venture 1.3
Image of page 11
Image of page 12
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern