Franchising Business in the Philippine Setting: Case Analysis

Authors

  • Christian Justin Quejado
  • Wendee Shmily Francisco
  • Junie Padaca Jr
  • Donalyn Opiniano
  • Liane Micah Montaril

Abstract

can be adapted by an organization as a strategy for business expansion. Most people who are planning to start or build a business usually choose to franchise a well-known restaurant so they could avoid having problems like bankruptcy or taking the risk of starting their restaurant or business. In the field of the Hospitality industry, it is normal to have a business or to franchise a business, not only in the Philippines but also worldwide. By franchising, there are many companies and restaurants that became widely known locally and internationally.
This descriptive research aims to determine the advantages and disadvantages of business franchising, identify the risk factors of franchising restaurants and distinguish the factors that contribute to the decision making of entrepreneurs to choose to franchise a business that will then help the researchers to write a case analysis on how to franchise a business in the Philippine setting. The researchers prepared sample questionnaires that will be answered by the respondents to collect precise answers. This study will make use of the explanatory methods of the research approach. Based on the analyzed data, ost of the franchisors and entrepreneurs think that start-up assistance is one of the advantages of franchising restaurants, to be followed by marketing, name recognition, the experience of franchisor and proven system operation. Aside from the long-term content, sole sourcing, being dependent on franchisor's success and limited creative/flexibility, the entrepreneurs and franchisors think that royalty payments are one of the biggest disadvantages of franchising because aside from the franchise fee, after a year the franchisor will also pay a royalty fee. To be a successful franchisor, the entrepreneurs and franchisors think that being a risk-taker is one of the most common traits that a successful franchisor should possess.
The researchers’ main point in franchising a business is, entrepreneurs need to be careful and peculiar because it’s not just the money is being invested to it but also efforts and hope. Starting a business is not that so easy. There’s a need for knowledge to know everything starting with the place for the business and also study the target customer.

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Published

2020-03-27

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Articles