Course: Degree Project in Supply Chain Management, the Business Administration and Economics Programme, 4FE19E Authors: Matilda Engblom and Katarina Nyberg Supervisor: Arash Kordestani Examiner: Helena Forslund Title: Following the Recipe Brings Franchisees to the Table - A Case Study Consolidating Purchasing and Calculating Cost Savings at Franchisees Background: As a franchisor, Company X does not have insight or control in purchasing at their franchisees. Spend analysis is a tool used to identify current purchased volumes and costs. An aim with spend analysis is to decrease the cost and analyse the spend. There are four different types of consolidation that can consolidate the current purchased volumes and create purchasing cost savings. They are article, volume, supplier and transport consolidation. However, identifying the current situation can be hard in the franchise concept and therefore hard to create purchasing cost savings. It is therefore of need for the franchisor to have insight and control over their franchisees in purchasing. Purpose: The purpose of this study is mainly to identify how the current purchased volumes can be consolidated to create purchasing cost savings for the franchisees of Company X in the Middle East. In addition, calculate the purchasing cost savings that consolidation could lead to. As well as, investigate how a franchisor can regain insight and control in purchasing over their franchisees. Methodology: This case study had a mixed research strategy of explanatory sequential design. Empirical data was collected by both unstructured, semi-structured and structured interviews. The analytical methodology was based on pattern matching. Confidentiality has been of great focus during the study for ethical considerations. Conclusion: The current purchased volumes and costs were identified, enabling different types of consolidation and calculations for purchasing costs. The consolidation model (Figure 28, p. 43) illustrates four different types of consolidation, article, volume, supplier and transportation, which should be followed. Lastly, Table 38 (p. 85) presents actions for regaining insight and control over franchisees.

Submitted by Eduardo Pinto (eduardo.mspinto@gmail.com) on 2014-03-21T13:36:15Z No. of bitstreams: 1 FGV - Dissertação - Franquia - Eduardo Pinto vFINAL.pdf: 1301841 bytes, checksum: 3ff0451019d18e22556eb604c91c768c (MD5) / Approved for entry into archive by ÁUREA CORRÊA DA FONSECA CORRÊA DA FONSECA (aurea.fonseca@fgv.br) on 2014-04-30T19:35:46Z (GMT) No. of bitstreams: 1 FGV - Dissertação - Franquia - Eduardo Pinto vFINAL.pdf: 1301841 bytes, checksum: 3ff0451019d18e22556eb604c91c768c (MD5) / Approved for entry into archive by Marcia Bacha (marcia.bacha@fgv.br) on 2014-05-07T17:48:57Z (GMT) No. of bitstreams: 1 FGV - Dissertação - Franquia - Eduardo Pinto vFINAL.pdf: 1301841 bytes, checksum: 3ff0451019d18e22556eb604c91c768c (MD5) / Made available in DSpace on 2014-05-07T17:49:39Z (GMT). No. of bitstreams: 1 FGV - Dissertação - Franquia - Eduardo Pinto vFINAL.pdf: 1301841 bytes, checksum: 3ff0451019d18e22556eb604c91c768c (MD5) Previous issue date: 2014-02-10 / The franchise system has been receiving increasing attention in media oriented business due to its great development in Brazil and around the world, with a high rate of growth, as well as having a great potential to reach even greater heights. Based on theories of agency and corporate resources, the main approaches in this sector have been described, expanding the concept of contract support of the relation between franchisors and franchisees for a qualitative analysis of the relationship between both parties, even identifying their evolutions over time, advantages and disadvantages, models and management challenges. A nationwide study conducted by Toledo and Proenca (2005) praised one of the big reasons that generate the failure of a franchise chain is the lack of commitment in maintaining good relationship with the franchisor to its franchisees. And this is the central theme of this work, in order to give due importance to this topic, showing how it is influenced by the degree of maturity of the chain and its relevance to business success. Through a comparative case study, exploratory investigation, having interviews with franchisors and franchisees of two chains in the Brazilian food segment as the primary form of data collection, results were obtained with the way the relationship has been managed by both parties, in different topics, and its relation to the stage of maturity in which the network is making the study relevant to the market, with both academic contributions, as the congruence of research, and corporate, as the connection of good practices and lessons learned with the concepts covered. / O sistema de franquias vem recebendo um destaque cada vez maior nas mídias voltadas para negócios devido ao seu grande desenvolvimento tanto no Brasil quanto no restante do mundo, apresentando um alto índice de crescimento, além de possuir um grande potencial para atingir patamares ainda maiores. Com base nas teorias da agência e de recursos da empresa, foram descritas as principais abordagens sobre este setor, ampliando o conceito de contrato como suporte da relação entre franqueadores e franqueados para uma análise qualitativa sobre o relacionamento entre as partes, identificando ainda suas evoluções ao longo do tempo, vantagens e desvantagens, modelos e desafios de gestão. Um estudo de âmbito nacional realizado por Toledo e Proença (2005) enalteceu que um dos grandes motivos que geram o insucesso de uma rede de franquias é a falta de comprometimento na manutenção do bom relacionamento do franqueador para com seus franqueados. E este é o tema central deste trabalho, com o objetivo de dar a devida importância a este tópico, mostrando como ele é influenciado pelo grau de maturidade da rede e a sua relevância para o sucesso do negócio. Através de um estudo comparativo de casos, de caráter exploratório, tendo como principal forma de coleta de dados as entrevistas presenciais realizadas com franqueadores e franqueados de duas redes no segmento de alimentação brasileiro, foram obtidos resultados quanto a forma com que o relacionamento tem sido gerido por ambas as partes, em diversos âmbitos, e a sua relação com o estágio de maturidade em que a rede se encontra, tornando o estudo relevante para o mercado, com contribuições tanto acadêmicas, como a congruência de pesquisas, quanto corporativas, como a conexão de boas práticas e lições aprendidas com os conceitos abordados.

[pt] Quando se trata de internacionalizar as marcas brasileiras, com frequência a modalidade de franquia é utilizada. Segundo a Associação Brasileira de Franquia (ABF), o país ocupava, em 2016, o sexto lugar no ranking mundial em relação ao número de franquias. A internacionalização de franquias é eficaz por meio de transferência de ativos intangíveis, tais como: o know how do franqueador, o reconhecimento da marca e a questão de existir um sistema de negócios pronto para o franqueado, sem requerer um investimento significativo do dono da marca para executar tal expansão. Por se tratar de uma sociedade em que as partes não possuem uma igualdade no poder decisório, esse tipo de sistema requer cooperação. O fluxo de informação só se concretiza quando há uma parceria, rede de relacionamento e alinhamento de estratégias e interesses. A partir dessa suposição, o estudo tem como objetivo investigar o papel do relacionamento entre franqueadores e franqueados no processo de internacionalização. Para tal, foi aplicada a metodologia de estudos de casos e três empresas franqueadoras internacionalizadas foram pesquisadas. Posteriormente, as informações foram comparadas com os modelos de Uppsala (1977 e 2009), usando como suporte a literatura de franquia. Identificou-se que tais empresas utilizam seus conhecimentos e suas redes para expandir seus negócios e, frequentemente, absorver informações de parceiros locais para melhorar o conhecimento de mercado e adaptar seus produtos ou serviços. O estudo contribui para entender melhor como o aspecto relacional favorece uma internacionalização bem-sucedida. / [en] When it comes to internationalizing Brazilian brands, the franchise mode is often used. According to the Brazilian Franchise Association (ABF), in 2016, the country was the sixth on the world ranking regarding the number of franchises. The internationalization of franchises is effective through the transfer of intangible assets, such as the franchisor s expertise, brand identification and a business system ready for the franchisee, which does not require a significant investment from the brand owner to implement an expansion. This is a partnership in which the partners do not have equal decision-power; therefore, this kind of system requires cooperation. The exchange of information is only achieved when there is a partnership, a network of relationship and an alignment of strategy and interests. Departing from this assumption, this study aimed to investigate the role of relationships between franchisors and franchisees in the internationalization process. To that end, the methodology of case studies was applied and three franchising firms that internationalized were investigated. Subsequently, the data was compared to the Uppsala models (1977 e 2009) using the franchise literature as an additional theoretical support. The study identified that such companies use their knowledge and their networks to expand their business and often to absorb information from local partners in order to improve market knowledge and adapt their products or services. This study helps to better understand how the relational aspect contributes to a successful internationalization.