M.Comm. / Franchising is growing in stature as one of the most powerful business methods. Fifty percent of retail sales in the USA are generated through franchised chains. Franchising happens when an entrepreneur seizes a viable business opportunity. A system is developed to extract the maximum value and the rights to use the business system are sold to a franchisee to operate a business along the same principles and systems as the original opportunity. The franchisee and franchisor work together as a team or alliance to build and maintain the brand. In order to exploit the business opportunity in a meaningful manner, it is important for the franchisor and the franchisee to understand and to analyse the different relationships in the franchising model. The franchise relationship model developed by Spinelli et al is very useful and provides a sensible approach in analysing and identifying the different relationships in a franchised business. The most important aspect of the franchise relationship model is the relationship with the customer. The service delivery system is created by the franchisor and franchisee to provide the best service or to deliver the product in the most effective way to the customer. The service delivery system is the blue print of the franchise operation and outlines the flow of tasks and transactions in the franchise model. In order for franchisors and franchisees to ensure that uniformity and standards are maintained across the franchised business, it is important for them to have a system through which franchisees can be monitored. The main focus of the monitoring system is to prevent shirking, free riding or to avoid that franchisees erode the brand of the business. An important tool in the monitoring process is the franchise agreement. The franchise agreement is a specialised agreement that outlines the relationship between the franchisor and the franchisee. Other important tools used in the monitoring function are field visits, external service audits, peer review, analytical tools, customer feedback and mystery shopping. Transactional analysis is used to determine which tasks are to be carried out by whom in the franchise relationship. The service delivery system tasks are defined and different tasks awarded to either the franchisee or the franchisor. As an example of this method, the real estate function is analysed indicating what the essential tasks are when executing this function and who is responsible for it.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uj/uj:2115 |
| Date | 29 February 2012 |
| Creators | Koekemoer, Rihann Pierre |
| Source Sets | South African National ETD Portal |
| Detected Language | English |
| Type | Thesis |
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