FOREIGN RELATED STUDY

According to the result of the franchisee motivation survey conducted by The Research
Strategy Group, a Toronto-based, custom market research company. The first thing that
the franchisees considered in choosing a franchise is the name recognition of the
company. Then the franchise support and training, the ease of running the franchise,
the franchising opportunity was already available; there is a lower risk and the concept
that appealed the franchisees.
RELEVANCE OF THE STUDY
The Research Strategy Groups survey has bearing to the present study because this
study aims to find out if what are the major considerations that the franchisees needs to
consider in choosing the franchise.
Source: (website)
http://www.franchise.org/uploadedFiles/Franchise_Industry/IFA_Store/Fran
chisee%20Motivation%20Survey%20Report.pdf










FOREIGN RELATED LITERATURE
The study of Prof. A. Berndt of University of Johannesburg, Department of Marketing
Management, entitled Franchisees Satisfaction among Food Franchises: An
explanatory Study found that the major dimensions that satisfied the franchisees among
food franchises are the brand image of the franchise and by the communication, which
got the lowest mean score of 3.05 and 3.18 respectively. These responses indicate that
from the franchisees perspective, the issues of brand image and communication are
perceived positively, and presented the greatest areas of satisfaction in their franchising
experience. The dimension with the highest mean score is the franchisee representative
council 4.36, probably because some of the franchise chains do not have active
councils.
BUYING A FRANCHISE
Based on the Franchise Opportunities Handbook of U.S. Department of Commerce,
there are many advantages and disadvantages that need to be explore before buying a
franchise. Nonetheless, it is an excellent way to enter business as an owner or a
manager and make a nice salary plus profit.
There are many things to do before jumping into a franchise. The box checklist for
evaluating a franchise points out that you should have a lawyer to evaluate the
franchise. Remember, you are making a sizable financial investment. Furthermore, you
have to analyze yourself, the franchise, and the market. Take some time to go over the
checklist, it will help you understand many of the questions that franchisees should ask
if they want a successful venture.
CHECKLIST FOR EVALUATING A FRANCHISE
THE FRANCHISE
Did your lawyer approve the franchise contract you are considering after he or she
studied it paragraph by paragraph?
Does the franchise give you an exclusive territory for the length of the franchise?
Under what circumstances can you terminate the franchise contract and at what cost to
you?
If you sell your franchise, will you be compensated for your goodwill?
If the franchisor sells the company, will your investment be protected?
THE FRANCHISOR
How many years the firm offering you a franchise been in operation?
Has it a reputation for honestly and fair dealing among the local firms holding its
franchise?
Has the franchisor shown you any certified figures indicating exact net profits of one or
more going firms that you personally checked yourself with the franchisee?
Will the firm assist you with:
A management training program?
An employee training program?
A public relation program?
Capital?
Credit?
Merchandising ideas?
Will the firm help you find a good location for your new business?
Has the franchisor investigated you carefully enough to assure itself that you can
successfully one of its franchises at a profit to both the franchisor and you?
YOU-The Franchisee
How much equity capital you have to have to purchase the franchise and operate it until
your income equal your expenses?
Does the franchisor offer financing for a portion of the franchising fees? On what terms?
Are you prepared to give up some independence of action to secure the advantages
offered by the franchise?
Are you ready to spend much or all of the remainder of your business life with this
franchisor, offering its product or service to your public?
YOUR MARKET
Have you made any study to determine whether the product or service that you propose
to sell under franchise has a market in your territory at the prices you will have to
charge?
Will the population in the territory given you increase, remain static, or decrease over
the next five years?
Will the product or service you are considering be in greater demand, about the same,
or less demand five years from now than today?
What competition exists in you territory already for the product or service you
contemplate selling?
The study of Prof. A. Berndt of University of Johannesburg, Department of Marketing
Management, entitled Franchisees Satisfaction among Food Franchises: An
explanatory Study found that the major dimensions that satisfied the franchisees among
food franchises are the brand image of the franchise and by the communication, which
got the lowest mean score of 3.05 and 3.18 respectively. These responses indicate that
from the franchisees perspective, the issues of brand image and communication are
perceived positively, and presented the greatest areas of satisfaction in their franchising
experience. The dimension with the highest mean score is the franchisee representative
council 4.36, probably because some of the franchise chains do not have active
councils.

RELEVANCE OF FOREIGN LITERATURE
Prof. A Berndts study has a relation with the present study because it would serve
as guide to the researchers to become successful with their study and it would give
them clearer understanding about the research problem of franchisee considerations
among food related franchises. Other than that there are other sectors in the
franchising environment that could be involved in studies to determine the major
franchisee consideration.
The article about buying a franchise taken from the Franchise Opportunities
Handbook of U.S. Department of Commerce has bearing to the present study
because it give the checklist for evaluating a franchise so that the franchisees
understand many of their questions about the things that they need to consider to
have a successful venture.

Source:
(Book)Understanding Business- Second Edition By: Nickels and McHUGH
(book) Franchise Opportunities Handbook, U.S. Department of Commerce
(journal) Southern African Business Review Volume 13 Number 1 2009
(website)http://www.unisa.ac.za/contents/faculties/service_dept/docs/franchise_SAB
VI113chap1.pdf