1 / 20

Organizational forms in franchising

Organizational forms in franchising. Dr. Rozenn Perrigot www.rozenn-perrigot.com. Franchising. You know it already…. Company ownership.

kyrie
Download Presentation

Organizational forms in franchising

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Organizationalforms in franchising Dr. Rozenn Perrigot www.rozenn-perrigot.com

  2. Franchising • You know it already…

  3. Companyownership • The unit belongs to the network operator (hierarchical relationship, the manager of the unit is paid by the network operator, it is an employee and not an entrepreneur; the employees of the unit are paid by the network operator; etc.) • Example: All Zara stores belong to Zara-Inditex.

  4. Plural form (1/3) • A plural form network is a network within which franchised units and company-owned units coexist. • Example: H&R Block Tax Services has about 45% of itsunitsthat are franchised, and the remaining 55% are company-owned.

  5. Plural form (2/3) • For the franchisor Drawbacks

  6. Plural form (3/3) • For the franchisee Drawbacks

  7. Multi-Unit Franchising (1/3) • The Multi-Unit Franchisee has several units under the same brand. • Examples: • In the fast-food industry, 56 % of Dunkin Donuts franchisees, 81 % of McDonald’s franchisees and 49 % of Subway franchisees are multi-unit franchisees (Multi-unit Franchisee, 2011). • Mario Piromalli is a McDonald’s Multi-Unit Franchisee (about 18 restaurants in Rennes area).

  8. Multi-Unit Franchising (2/3) • For the franchisor Drawbacks

  9. Multi-Unit Franchising (3/3) • For the franchisee Drawbacks

  10. Role Play - Situation • The franchisor of BestServices4Seniors and his/her director of development, are meeting Mr and MrsWestillhesit who have already a franchised unit under the brand BestServices4Seniors. They should open a new unit at 15kms from the first one because of the already existing demand and the potential for growth but they are worried about becoming multi-unit franchisees

  11. Pluri-Franchising (1/3) • The Pluri-Franchisee has several units under several brands • Examples: A Pluri Franchisee in Chatellerault has a Ibis hotel and a La Taverne de Maître Kanterrestaurant (http://www.ibis-kanter-chatellerault.com )

  12. Pluri-Franchising (2/3) • For the franchisor Drawbacks

  13. Pluri-Franchising (3/3) • For the franchisee Drawbacks

  14. Commission-affiliation (1/3) • Under a “commission-affiliation” contract, the franchisee is not the owner of the stock; this is the franchisor who remains the owner of the stock • Examples: Cache-Cache from the Beaumanoir group proposes a “commission-affiliation” contract

  15. Commission-affiliation (2/3) • For the franchisor Drawbacks

  16. Commission-affiliation (3/3) • For the franchisee Drawbacks

  17. Role Play - Situation • The franchisor of BestClothes4Dating and his/her director of development, are meeting Mr and MrsWestillhesit who have just stopped their careers in the food retailing and who are interested in the BestClothes4Dating concept (casual clothes) but they are worried about the “commission-affiliation” contract compared to the traditional franchising contract.

  18. Micro-franchising • Micro-franchising aims to offer to people outside the labor market, the creation of a “turn key” micro-business, business concept tested and shared services supporting the development of the activity. • Example: O2 proposes a micro-franchising contract for DIY and gardening.

  19. Social franchising • Social franchising is a means of enabling social enterprises and the social economy to create more employment for disadvantaged people and achieve social aims. This is done principally by enabling joint working and knowledge sharing and transfer. It is the application of the principles of commercial franchising to promote social benefit rather than private profit. • Examples: CAP Supermarket is a social franchise chain in Germany.

  20. Franchising and otherorganizationalforms Dr. Rozenn Perrigot www.rozenn-perrigot.com

More Related