Franchising is one of three business strategies a company may use in capturing market share. The others are company owned units or a combination of company owned and franchised units.
Franchising is a business strategy for getting and keeping customers. It is a marketing system for creating an image in the minds of current and future customers about how the company's products and services can help them. It is a method for distributing products and services that satisfy customer needs.
Franchising is a network of interdependent business relationships that allows a number of people to share:
- A brand identification
- A successful method of doing business
- A proven marketing and distribution system
In short, franchising is a strategic alliance between groups of people who have specific relationships and responsibilities with a common goal to dominate markets, i.e., to get and keep more customers than their competitors.
There are many misconceptions about franchising, but probably the most widely held is that you as a franchisee are "buying a franchise." In reality you are investing your assets in a system to utilize the brand name, operating system and ongoing support. You and everyone in the system are licensed to use the brand name and operating system.
The business relationship is a joint commitment by all franchisees to get and keep customers. Legally you are bound to get and keep them using the prescribed marketing and operating systems of the franchisor.
To be successful in franchising you must understand the business and legal ramifications of your relationship with the franchisor and all the franchisees. Your focus must be on working with other franchisees and company managers to market the brand, and fully use the operating system to get and keep customers.
Throughout this article we will discuss in detail some of the benefits of conducting business as part of a larger group.
Other franchisees and company operated units are not your competition. The opposite is true. They and you share the task of establishing the brand as the dominant brand in all markets entered and reinforcing the customers's familiarity with and trust in the brand. So in this respect you are working as a team with others in the system. Other franchisees share with you the responsibility for quality, consistency, convenience, and other factors that define your franchise and insures repeat business for everyone. Increasing the value of the brand name is a shared responsibility of the franchisor and franchisee.
An "ownership mentality" destroys the reason franchised and company-operated units are successful. Think about it. If you think you "bought" a franchise, you become an "owner" and begin to think and act like an owner. You will want to change the system because of your needs, you will wonder what you are paying the royalty for, and you will begin thinking of other franchisees as your competitors. For these and many other reasons you do not want to think of yourself as an "independent owner."
As a franchisee you own the assets of your company, which you have chosen to invest in someone else's brand and operating system and ongoing support. You own the assets of your company, but you are licensed to operate someone else's business system.
Finally, your desire to become a franchisee must be grounded in your belief that you can be more successful using someone else's brand and operating according to their systems and methods, than you could if you opened up your own independent business and competed against them. You want to look for a franchisor who is building a system of interdependent franchisees who are committed to getting and keeping customers, to growing faster than the market, to growing faster than the competitors, and to do all of that with high margins. When you discover a franchisor who understands this relationship, you have a franchisor worth your consideration.
Below are some examples of frinchise business
McD – McDonald’s give franchise / waralaba opportunity in Indonesia in Fastfood Industry. They have many Fastfood Food and Beverages products to serve their loyal customers.
Now they already opened many outlets in many countries. If you interested in serious business in fastfood industry, you can be one of their franchisee.
McDonald’s has always been a franchising company and has relied on its franchisees. McDonald’s remains committed to franchising as a predominant way of doing business.
Direct International Franchising
For interest in specific markets regarding Direct International Franchising inquire select a market below to see a list of contacts and franchising information for each area. Links to individual market web sites are provided where available.
For those markets not listed, contact the International Franchising Department by fax at (630) 623-7960.
If you need general information or have questions about McDonald’s not related to Franchising, please call (630) 623-3000.
Most Owner / Operators enter the System by purchasing an existing restaurant, either from McDonald’s or from a McDonald’s Owner / Operator. A small number of new operators enter the System by purchasing a new restaurant.
The financial requirements vary depending on the method of acquisition.
Financial Requirements / Down Payment
An initial down payment is required when you purchase a new restaurant (40% of the total cost) or an existing restaurant (25% of the total cost). The down payment must come from non-borrowed personal resources, which include cash on hand; securities, bonds, and debentures; vested profit sharing (net of taxes); and business or real estate equity, exclusive of your personal residence.
Since the total cost varies from restaurant to restaurant, the minimum amount for a down payment will vary. Generally, we require a minimum of $250,000 of non-borrowed personal resources to consider you for a franchise. Individuals with additional funds may be better prepared for additional or multi-restaurant opportunities.
Ongoing Fees
During the term of the franchise, you pay McDonald’s the following fees:
- Service fee: a monthly fee based upon the restaurant’s sales performance.
- Rent: a monthly base rent or percentage rent that is a percentage of monthly sales.
Pizza Hut provides franchise / waralaba in Indonesia in Restaurant Industry. Pizza Hut features a variety of pizzas with different toppings as well as pasta, salads, sandwiches and other food items and beverages. The distinctive decor features a bright red roof.
Pizza Hut Products
- Various Pizza : Cheese Lover’s Pizza, Meat Lover’s Pizza, Pepperoni Lover’s Pizza, Veggie Lover’s Pizza, and Super Supreme.
- Pan Pizza
- Personal Pan Pizza
- Hand-Tossed Style Pizza
- Stuffed Crust Pizza
- Thin ‘N Crispy Pizza
- Various Toppings
- Salad and Soup
- Appetizers
- Desserts and Drinks
Franchise Requirements
- Have capital to grow
- Have Strong Personal Net Worth ~ $ 1 Million
- Have Financial Plan for future Development
- Have a passion for open Restaurant Business
- Committed to build people capability
- Have a Strong Will
Franchise Investment
- Initial Investment : $ 1 – 3 Million
Including :
- Building and Equipment : $875,000 – $1,355,000
- Start-up Inventory : $5,000 – $8,000
- Franchise Fee : $75,000
- Training Expenses : $10,000 – $25,000
- Pre-Opening and Opening Advertising Fee : $5,000
- And other Additional Costs
So if you want to open business in Restaurant Industry with the Best Pizza Restaurant in the World, you can contact their main branch for the detailed information about the franchise opportunities.
Carrefour gives franchise / waralaba business opportunity (peluang bisnis) in Indonesia, As the No 1 retailer in Europe and No 2 worldwide, Carrefour aims to set the benchmark in modern retailing for the protection of health, consumer safety and the environment. This company mission is expressed by seven core values: freedom, Responsibility, Sharing, Respect, Integrity, Solidarity, Progress.
Quality is one of our main source of competitive differentiation and is part of the fundamental policies defining the implementation of the Group’s strategy. It always corresponds to what the customer explicitly or implicitly wants and must be clearly perceived as such. The value for money must be the best.
Controlled products whether banner brands or own brands, offer exemplary quality and safety. A product must demonstrate the required quality level before it can be approved for purchase.
The best possible value for money is offered at every price level (first price products/ own brand and banner brand products). For own brand and banner brand products, the quality process includes signing a set of specifications, approving production sites and product control plan, processing and archiving any con-compliant products and following up of customers claims.
To complete this system, Carrefour has deployed in 2005 a Quality Scorecard available on the group’s intranet site, which enable all the countries to track products at every stage of their marketing and to react more efficiently in case of a crisis.
- Quality : an approach shared with our suppliers
To guarantee the quality of its food products and its own brand and banner brand products, Carrefour systematically conducts audits on its suppliers’ production sites, which are audited health and safety conditions.
- A fast and efficient product withdrawal procedure
- Within two hours, a product can be recalled in each banner.
- Quality at the best price: first price products
- Carrefour Quality Lines: a concrete example of our sustainability approach
- Safety commitment on Drug Perfume and Hygiene products (DPH)
- Safety commitment on textiles and clothing for babies and children
- Quality information on non-food products labels
- Ensure in store safety and quality
