Понятие франшизы. Обязанности сторон. Преимущества и недостатки данного бизнеса для обоих участников

Retailing and wholesale

Wholesale – sale of commodities(товары) in quantity for resale.

Retailing – selling products to general public.

Outlets – shops or stores for retailing.

Large retail chains are organized nationally and sell standardized selection of products

(their outlets in shopping centres (US malls): large variety of stores in the same location).

Hypermarkets (over 30,000 sq. m.) or superstores (under 30,000) – of town locations with parking facilities.

Department stores – large shops which sell a wide variety of products, usually from a city centre location (organized in departments, each with own manager).

Problems of British retailers in the US market:

- lack of cultural awareness (assume that US and UK consumers have same tastes-what can be perceived as traditional, high quality merchandise in the UK may appear in US to be old fasioned)

- difference in whole structure of the industry and the way how the outlets organised (us market is dominated by the malls, UK failed to grasp the size factor, not able to adapt to huge US market)

- underestimating the competition (US retailers – aggressive players, consumers – bargain hunters, industry changes quickly, requires flexibility and being dynamic)

- choosing wrong places for stores (expensive town centre locations)

Richer Sounds' Keys to Success in Rretail Business:

- end-of-line or surplus equipment

- suppliers – manufacturers hoping to off-load the end-of-line equipment (often at a discount price)

- outlets – 28 small stores in UK (walk-in warehouses), “bargain bins”, special offers, equipment stacked from floor to ceiling, banners hanging

- regular advertising in national newspapers (they buy late space at a discount)

- customer service training: not to be pushy, to take responsibility, follow the correct administrative procedures, attend training seminars at Richer’s country house

- free phone number on customer receipts to dial in case of problem

- seasonal gifts and gifts-away offered

- staff motivation: customer service competition – win a car and petrol for month, gold aeroplane badges handed out to “high fliers”

Safeway Superior Service Program

- eye contact with the customer

- smile, greet, offer samples of products, accompany to locate items, thank shoppers by name

- “mystery shoppers” to control performance

- staff motivation: $500 worth of company stock, additional bonuses

- side effects: customers’ debates about false and genuine frendliness, misinterpretation of friendliness, growing morale problems among the staff

Franchising – business system in which a company (franchisor) sells an individual (franchisee) the right to operate a business using the franchisors established system or format.

Franchisee:

pays:

- franchise fee (or front end fee) – to buy the license

- royalty (or management services fee) for continuing advice and assistance (calculated as a percentage of annual turnover)

- advertising fee to contribute to franchisors annual advertising and marketing costs

- finds necessary capital to open the business

- buys products from particular supplier appointed by franchisor

- complies with/conforms to standards (quality of the products)

- recruits and manages personal

- provides annual reports on sales

Franchisor:

- provides operation manual (information for franchisee to run his business)

- provides equipment

- promotes the business through national advertising

- chooses supplier

- controls the way franchisee manages his business

- may appoint master franchisee (to supervise the business in particular area)

Benefits

Franchisee:

- safe bet, reduced risk(you will not fail, you are investing in a business that’s already operating in other places)

- quick access(iа advice needed)

Franchisor:

- expands business without making investments

- no need to recruit personnel

Problems for franchisee:

- not free in activity

- huge financial responsibility, much capital required, pay back at least 7-10 years. If you need more money the f-r won’t offer you any cash. He will literally just take the franchise from you when you lost much money.

- staff may let you down, you are the one who has to step in, maybe work in the kitchen…

- flexibility and willingness to work hard are necessary

Secrets of successful franchise:

- you need to have much dedication to the job.

- preparation - the most important part - in this business you need to be looking at the future

- staffing is the main problem. You have to find the right people who will enjoy their not a high-paying job.

- You need to be sure that you are constantly matching 2 issues:

- A)your bills will remain pretty constant B) you have a long- term vision (no immediate payback)

- be patient and enjoy the daily success of the business

Дата добавления: 2015-01-03