Franchise Report

In: Business and Management

Submitted By anitabaena
Words 412
Pages 2

Ana Mª Baena
Carlos Villa


* Introduction to the business * Marketing mix * Review of the business in the last years * SWOT Analysis * Recommendations * Bibliography

El Mercado Provenzal, Provencal Market in English. Is a restaurant/bar franchise chain low-cost of Spanish origin born in august 2012. It currently has more than 70 local franchised, spread throughout Spain. Its expansion plan aims to overcome the 150 establishments in 2015. In 2013 he received the National Award for Best Hospitality Franchise.
His business idea is simple: Cheap food and drinks from 12:00 p.m. to 3:00 a.m., including all types of beverages and especially beer.
The system for the start-up requires an initial investment of € 60,000 plus VAT and on a two-month period the local will open with immediate benefits. The franchisee only has to be trained in the centers of the business.

We know the marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. And the 4Ps make up a typical marketing mix - Price, Product, Promotion and Place. Let’s apply it.

PRODUCT: Offers a great variety of dishes and beverages at a low-cost without losing quality. Beer will be its flagship product.
PRICE: The strategy they are following is to keep prices down with the intention of attracting more customers and thus increase the profit margin.
PLACE: The local has to be located in a place with lots of pedestrian and decorated like an antique market of the Provence.
PROMOTION: Since they do not advertise the business, its main promotion is worth-of-mouth due to its low price and high quality.

The business is too “young” for us to make a deep analysis, but at the moment we can say that…...

Similar Documents

Subway Franchise

...Subway Franchise Course Instructor’s Name 11 August 2012 Subway Franchise The franchise concept has several advantages for both the franchisor and the franchisee. For the franchisor, offering a franchise arrangement means an easy access to capital formation brought about by the investments of franchisees (Om Sai Ram Center for Financial Management Research, 2006). Furthermore, it provides incremental income for the franchisor through royalty payments. Another advantage of the franchise concept is that it makes possible a faster expansion program for the franchisor supported by motivated distributors in the person of the franchisees (Om Sai Ram Center for Financial Management Research, 2006). The franchisees stand to benefit too from a franchise agreement. The franchisee gets to experience entrepreneurial autonomy using a proven concept, often with extensive recognition of the brand name (Om Sai Ram Center for Financial Management Research, 2006). The franchisee also benefits from the training programs provided by the franchisor, coupled with continuing supervision of the store. Although there are advantages to owning a franchise, franchisees are faced with disadvantages too. Decision-making is quite limited since the franchisee should follow the guidelines set by the franchisor (Om Sai Ram Center for Financial Management Research, 2006). In terms of purchasing, the franchisee is forced to purchase supplies and equipment from the......

Words: 1378 - Pages: 6

Franchise Project

...Franchise Project In this paper I will go in depth about franchising opportunities from several franchisors, talking about service or products the companies they offer/sell, the different fees that are required, what kind of support system the franchisors offer, their competition, and where they are located in the Upstate if they are at all. The companies that I’m going to elaborate on are Cinnabon, Dominos, Maaco, and Anytime Fitness. Franchise Description and Background Cinnabon Inc. is a wholly-owned subsidiary of Cinnabon International, Inc. which is a wholly-owned subsidiary company Focus Brands Inc. The Cinnabon franchises operate as a Cinnabon retail bakery. They sell cinnamon rolls, cinnamon related products, and beverages. Their target market is EVERYONE (that is what my source says it). The company headquarters is located in Sandy Springs, GA. It was founded in 1985 by Rich and Greg Komen, the CEO is Janet Mitchell, and they opened their first franchise in 2004. Cinnabon offers two different styles franchises: Full Bakery (with a Carvel Express Shoppe option) and Express Bakery (in a New Schlotzsky’s Restaurant option). Maaco Collision Repair and Auto Painting is a subsidiary to Driven Brands is the largest USA based auto body franchise used by the general public for auto body damage repairs, and auto repainting on their personal automobiles. It was founded by Anthony A. Martino in 1972 located in Wilmington, Delaware. They have nearly 500 franchises open......

Words: 2630 - Pages: 11


...franchise 1) n. a right granted by the government to a person or corporation, such as a taxi permit, bus route, an airline's use of a public airport, business license, or corporate existence. 2) n. the right to vote in a public election. 3) v. to grant (for a periodic fee or share of profits) the right to operate a business or sell goods or services under a brand or chain name. Well-known franchise operations include McDonald's, Holiday Inns, Ace Hardware, Rexall Drug Stores, and Amway Distributors. 4) n. the right one has to operate a store or sell goods or services under a franchise agreement, as in "we have the Taco Bell franchise in our town." 5) adj. referring to a "franchise tax" which is placed on businesses (especially corporations) for the right to conduct business, as distinguished from a tax on property, income or profits tax. Source: According to Steven C. Michael Franchising, in which independent businesses operate under a shared trademark using a common production process, is used primarily by service businesses. It is an enduring and pervasive organisational form. As an organisational form, franchising has a large and visible presence in consumer industries such as restaurants, lodging, auto repair, real estate, hair styling, and specialty retailing, where it has captured typically thirty to forty percent of sales. Business services in which franchising is prominent include......

Words: 1298 - Pages: 6


...I made a research and decided to choose a cleaning services franchise. I chose the Maid Simple House Cleaning Franchise. It offers light cleaning services including dusting, mopping, vacuuming, and tidying. Generally, two employees perform cleaning services at each customer's home. I chose this franchise because it is a growing company with 30 years history. It is home-based business. That means tmore freedom, tax advantages. Maid Simple House Cleaning is helping aspiring enterpreneurs since 1979. Maid Simple House Cleaning has over 400 franchise territories in the United states and continuing to grow. Maid Simple House Cleaning offers a complete franchise package including an advertising and customer aqcuisition programm , a national sales center that handles customer scheduling, billing and payment processing, and continous training and marketing support. A Maid Simple House Cleaning franchisee will receive a license to operate a business under the trade name, trademarks, service marks, logotypes, and commercial symbols that Maid Simple House Cleaninge designate, including the service mark Maid Simple House Cleaninge, gain access to customers through Internet alliances and partnerships of Maid Simple House Cleaning, obtain otheir assistance in matters like marketing, management, human resources, products, financial planning, and services,gain access to the full array of proprietary products and services they offer, inciuding their confidentiai business information and......

Words: 475 - Pages: 2

Franchise Development

...FRANCHISE DEVELOPMENT – DOING IT RIGHT For those of us experienced in franchising, we are often amazed when companies considering the establishment of a new franchise system (even large, well-established international companies) begin the process at the end - the development of the legal agreements. Presented with a lengthy questionnaire by their legal counsel, they are asked to provide information necessary to prepare franchise agreements and disclosure documents. The problem, though, is that the questions are often their main guide to how their franchise system should be structured. As a potential franchisor you may not fully understand all of the questions or have an independent frame of reference to know what all your available options truly are. The attorneys, knowledgeable in the law and prior agreements, often will provide you with advice and direction. However, without the benefit of being able to evaluate business alternatives, conduct research, and fully explore the strategic considerations that most of these decisions require, the franchise system will often end up operating as a legal vehicle for expansion rather than what it truly should be, a business structure for expansion. Since the franchising process began with the development of legal documents, new franchisors may view their franchise system as a legal device governed primarily by the rule of law. Experienced franchisors understand that while the law is an element of franchising, it truly is a minor......

Words: 3640 - Pages: 15

Franchise Paper

...students who wanted a nice meal for a moderate price. The first restaurant was called Buffalo Wild Wings and Weck, which was a type of bread that they used to serves their burgers on. Shorty after starting they added on a third partner Mark Lutz. The three men had absolutely no experience in the restaurant business but were doing exceptionally well by providing the college students with what they want. The company had its ups and downs financially during the first couple of years; but as its financial standings improved more restaurants were opened in six different locations. By 1991 the three partners had decided to franchise the business so they reached out to a law firm called Francorp do help them do this. During this time the fee for starting a franchise with Buffalo Wild Wings was between $15,000 and $20,000, a percentage of the sales, and each franchise was required to use BWW’s specialized bottled wings sauce. After doing this BWW incorporated a bar to its restaurants including TV’s mounted to the walls that displayed various sporting events that were on during different times. This added another target market for the company and “sales of alcohol contributed as much as thirty percent of revenues.” With the success of BWW they had to find someone who was qualified enough to take care of the financial aspect of their company so they hired Sally Smith as the Chief Financial Officer (CFO). As CFO Smith was in charge of improving the companies financial problems......

Words: 2260 - Pages: 10


...Mauricio Barajas Jaimes ID: 000208124 March 8, 2015 INVESTIGATION ON FRANCHISES PRODUCT FRANCHISE: HUSSE Characteristics: local pet food Delivery Company with the same benefits as a global company. Headquartered in Stockholm, Husse is the European leader in the home delivery of dog, cat and horse products under the Husse brand.  How does the brand work? * You work from home and decide for yourself how you spend your time. * Deliver premium and super premium products directly to the customer’s door. * Generate new customers through local farmers markets, door to door, dog / cat or horse shows, ewspapers, flyers, visiting breeders, social media, sponsor events or other activities. * Administrate your orders and customers via a customized intranet system. Total Investment Range: $11,250 - $25,000 dollars Initial Fee: The franchise fees start as low as $11,250 Area Coverage: Today more than 750 franchisees and distributors operate a Husse business in more than 45 countries.Take advantage of Husse's efficiency, low costs and minimal administration. Requirements from the Franchise: The requirements for getting started are: Invest in the franchise license, Invest in a red car according to our guidelines, Complete the initial training. (2 full days) and that most franchisees store their stock in a spare room or climate controlled basement/garage. An...

Words: 1267 - Pages: 6

Franchise Paper

...Franchise Paper I chose Jimmy John's Gourmet Sandwiches. I like their restaurants ideology and it appeals to a wide range of people all the way from old to young people. And also because they have an average net profit of $200000 and a average annual gross sales of $1,431,665 The total cost of starting this franchise is from $305,500 to $487,500 plus a royalty of 6% and an advertising fee of 4.5. The Capital or liquid cash required is 80,000 dollars. It also requires a net worth of 300,000 dollars. Capacity, they give you a, 7 weeks for general managers; 3 weeks for assistant managers, training. Character, Passion for the brand, family person, not a criminal, and hard working well intended. I would put my franchise in 2630 Interstate 20 footage road Canton, Tx. This location would be the best for my franchise because it's in a highly concurred zone, it's by a outlet mall which will bing a lot of customers everts day. The real-estate cost for this location would be between 70 and 150 thousand dollars Jimmy Johns is appealing to everyone but mostly to people between 18 and 40 particularly because JJ's started in a college town. There is a huge demand for my product in that area because there is no restaurant like it around it. The other closest Jimmy Johns is at least 6 miles way so there is not many competition My franchise serves fresh products which is really appealing to people and also my products are healthier then other restaurants. John's Gourmet......

Words: 348 - Pages: 2


...Franchises & Business Plans What is a franchise? Using examples from the real world, explain three advantages to the franchiser and to the franchisee. A franchise is where a business with a well-known brand name (the franchisor) lets a person (the franchisee) or a group of people set up their own business using that brand. This is in exchange for an initial fee and continuing royalty payments (a certain percentage of turnover or profit) for as long as the franchise lasts. A franchise is not a type of legal structure in itself. The liability for the person using the franchise depends on the how the business is established. A franchisee can choose which legal structure to adopt, although the franchisor may recommend a type. They have unlimited liability if they are in business as a sole trader or partnership but have limited liability if they set up the franchise as a company. Advantages for the franchiser: * The firm does not have to spend a large amount of money in order to expand * The products necessary for the franchise to operate are under the franchisers direct control * Issuing franchises should generate a continuous stream of revenue from franchisees who are determined to succeed Disadvantages for the franchiser: * The control it has over the product is not as great as if the business sold the product itself, bad publicity from a franchisee could affect the brand image * Franchisers have to offer continuous support, training and development......

Words: 1590 - Pages: 7


...Franchise My franchise which I chose was Mc Donald’s they sell food to people, they are based in many parts of the country. Franchise is when you use buy the name and products of a large and effective company. The size of this business is large because it has over 250 employees. It is also international according to scale because it is based in many countries like Pakistan, England, France, America and many more. A franchisee is a business or person who has the right to trade as a franchise no one else has the right. A franchisor is a business that is very success full and that can give the right of franchise to other new businesses to use their label. However some of the profit must be given to the franchisor. The owner of this business is the franchisor. There are some of advantages like one of them which are that the owner does not have the freewill to make all of the judgements most of the time judgements related to the products and prices. Problems can be discussed with the my franchise is mc Donald’s and they allow people to buy their name and open a business. They are not buying the company they are buying the name. The person must share the profit with the franchisor. An advantage for this person is that everything he needs go to do with the business will be given to him by the franchisor. So if a person opens a mc Donald’s through franchise and he needs a supply of oil and ingredients he can ask and it will be given to him by the franchisor. One thing......

Words: 313 - Pages: 2

Franchise Theory

...pages that are not counted as part of the written page requirements. All graphs must be discussed and explained within the body of the text. Newspaper and magazine articles may be cited but do not count as part of the required references. 1 A REVIEW OF FRANCHISE THEORY INTRODUCTION In service based industries one of the fastest growing forms of market structure is that of franchise agreements. Certain aspects of franchise contracts tend to be idiosyncratic in nature thereby attracting a great deal of interest by academics and business analysts in recent years. Various explanations have been proposed for the widespread use of franchise contracts in certain industries. While a great deal of the franchise contract has been explained in the literature, there remains certain aspects of this form of arrangement that has yet to be addressed. This paper intends to address two of these issues as well as proposing an alternative modelling approach to franchise contracts. The second section of this paper describes the basic structure of franchise contracts. The third section discusses the various explanations that have been proposed to explain franchising. The fourth section sets two aspects of the franchise contract that has not been addressed in the literature. The …rst of these is existence of both corporate owned outlets and franchised outlets within the same organization. Some authors have predicted that one form or the other would come to dominate the......

Words: 5413 - Pages: 22


...Running head: franchising and licensing Name: Course: Instructor: Date: Control over franchisee by the franchisor occurs when the franchisee deals with great amount of tasks for the management of the franchise. The franchisee is not capable of building his own success and customer base for his business. The franchisee is not proficient in run his independent business, therefore involves the franchise to maintain control over his business. The franchisee needs specific information on product development and market analysis of the product, the authority is delegated to the franchisor. Hiring a company owned business is not the same as managing franchisees. Most court has advised the right to control to determine weather a relationship between the franchisor and franchisee should give to liability Paul (2010). A valid agency relationship is created. Chris exists and a principle of existence is identified at the time of contracts. The legal capacity principle at the time the act was carried out and at the time of ratification is identified. It appears to have no reason why AL never explained the involvement of Chris. Chris has fulfilled his duties as an agent and the amendment will not be enforceable in court if Al makes a contract with Ben for Chris to be ratified, If Ben is not happy to contract with Chris. Ben has a right of liability, his liability differ to AL. The agent has no authority to sue or being sued on the contract unless he chooses to ratify it...

Words: 453 - Pages: 2


...CHAPTER 1: FRANCHISE INDUSTRY KPMG in India carried out a survey of Franchisors and Franchisees to solicit their perspectives on outlook for growth and how overall dynamics between Franchisor and Franchisee community is shaping up. The results of the survey have been broadly categorized under the following heads * Growth drivers for Franchising in India * Franchise Operating Models * Franchisee Satisfaction * Franchisee Support & Relationship Management * Challenges in Franchising * Conflict Management Growth drivers of franchising in India India, with its large population has always been a consumption story and will continue to remain so for the years to come. Burgeoning consumer class with an increasing appetite for consumption is considered as the biggest growth driver, both by franchisors and franchisees. Increase in entrepreneurial drive coupled with risk taking abilities has steered a number of people, especially those with no-specific business background, take a plunge into franchising based business models. Franchising as a business model has achieved stability over the course of time, giving new entrepreneurs increased confidence on the success of their ventures. Besides these, availability of investments and increased investment capability has also been a key factor driving the growth of the industry, especially when investment support from franchisors is minimal. Businessmen predominantly choose......

Words: 5596 - Pages: 23


...Nama: Deaning Harum P. NIM: 041411231208 WARALABA “KILOS” Nama Perusahaan: KILOS LAUNDRY & DRY CLEANING BARASIAH SADAYANA Head Office: 021-53127500 Kilos merupakan perusahaan  yang ingin mengembangkan jalur bisnis di bidang jasa khususnya laundry atau binatu dengan konsep yang memberikan pelayanan cuci dan seterika per kilogram dimana sekarang ini sangat berkembang pesat. pangsa pasar yang terdiri dari mahasiswa, ibu ibu rumah tangga, Event Organizer, apartement residence, wisma – wisma,dan hotel. Kilos menyiapkan paket- paket investasi fanchise/ waralaba yang berbeda- beda agar sesuai dengan kemampuan modal dari investor yang tertarik. Franchise/ waralaba yang ditawarkan berupa workshop yang berkapasitas memadai. Dana yang diinvestasikan akan memberikan mesin industri yang berkemampuan lebih dan mampu menghasilkan standar kualitas yang terjamin an memuaskan. Tipe/ paket investasi waralaba yang ditawarkan: 1. Mini Workshop Paket ini adalah paket yang paling populer bagi investor pemula. Paket ini dapat mencapai kapasitas produksi maksimal sebanyak 60kg/hari. Berikut rincian paket mini workshop: * Harga investasi: Rp. 100.000.000 * Kapasitas produksi perbulan: 1500—1800 kg per bulan * Omset yang diharapkan: Rp. 4.200.000—4.900.000 per bulan * Perkiraan balik modal: 18—20 bulan * Seluruh biaya sewa tempat ataupun upgrade PLN, mesin air, penambahan AC ditanggung oleh investor/ pembeli kemitraan 2. Small Industry Paket ini adalah jenis paket laundry......

Words: 526 - Pages: 3

Franchise Act

...Franchising Law in Malaysia A comprehensive analysis of the Franchise Act Introduction 1. The business of franchising has transformed the face of most business practices in Malaysia and has become a revolutionary way for Malaysian companies to develop, increase their production capability and expand their distribution chain both vertically and horizontally. Franchising fosters business opportunities for Malaysian franchisees, particularly small start-up companies (the “Franchisee”) under the guidance and assistance of another company (the “Franchisor”), which has the requisite experience and knowledge of the market practice and industry. The Franchisee may leverage on the Franchisor’s international and/or regional reputation and goodwill through its use of the Franchisor’s trade marks and intellectual property rights as well as the Franchisor’s tested technologies, trade secrets and business systems. Before the enactment of the Franchise Act 1998 (the “Franchise Act”) on 8 October 1998, franchising in Malaysia was governed by contractual principles and the absence of complex statutory provisions or guidelines allowed parties to freely negotiate the terms of their franchising arrangement. In contrast, the Franchise Act highly regulates the franchising industry as it not only controls the terms of any franchise agreement but also implements a systematic scheme of registration for the Franchisor, Franchisee and franchise brokers. Although this has created a......

Words: 3358 - Pages: 14

Digital Cameras | Travelers | Nyuru Nyuru!! Kakusen-kun