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Mencari Idea Businessó Mengembangkan hobi, minat , kompetensi dan

memperluas pemahaman tentangkesempatan/peluang businessó Melipat gandakan business yang sudah jalan dengan

menyebarkan gagasan dan memperluas shareó Menginvestasikan ;gagasan/patent” sebagai modaló Menemukan model Business yang siap dijalankan

Early Franchise Entrants

ó 1898 - Automobile Manufacturersó Division of responsibilities:

- manufacturers - design & production- dealers: sales & service

Coca Cola Company

ó 1886 : coca-cola inventedó 1899 : Thomas & Whitehead 600-word contract

promised to open a bottling plant• 1901 : no capital to open the bottling plant …?• 1919 : 1,000 franchised Coca-Cola bottlers

Gas Stations

ó 1930’s - Depression Era Franchisingó First example of Conversion Franchisingó Taxation of all company-owned gas stationsóWhy pay that? …. let’s FRANCHISEó Also quicker local response to price changes

Fast Food Fiftiesó Harlin Sanders - gas stationó closed pumps: 142 seat restaurantó 1950’s: turned down $164,000ó 1960 (200) 1980 (6,000) ó 2007: 13,433 KFC’s world-wide

• San Bernardino, CA 1940• Dick & Mac McDonald• inspired by Henry Ford’s assembly

line• Ray Kroc - multi-mixer salesman• world’s largest chain of FF-rest’s• over 31,000 locations world-wide

1960’s, 1970’s, 1980’s, 1990’s

Franchising Timelineó 1898 - General Motors, …Fordó 1899 - Coca-Colaó 1930 - Gas Stationsó 1952 - KFC: 13,433 ó 1955 - McDonalds: 30,823ó 1964 - 7-Eleven: 31,680ó 1974 - Subway: 26,197ó 1980 - Mail Boxes Etc. 5,760ó 1995 - Curves: 9,882ó 2001 - Geeks On Call: 305

Principles of Franchisingó 1,550 company-owned restaurantsó Revenues $1.69 billionó Expenses $1.42 billionó Pre-Tax Profit $270 million (16%)

ó 4,550 franchised restaurantsó Revenues $486 million (royalties)ó Expenses $ 78 millionó Pre-Tax Profit $408 million (84%)

Types of Franchisesó Manufacturer-Retailer (auto & gas)

= 70% of franchise salesó Manufacturer-Wholesaler (coca-cola)

= 3% of franchise salesó Business Format (McDonalds, Hilton)

= 27% of franchise salesó Franchising in the Economy (1986)

last year Dept. of Commerce collected datahow has franchising evolved since then?

Franchisor Strategiesó Advantages Of The Franchise Model

OPM expansionfranchise & royalty Feesleverage IP assetsefficient market penetration

ó Disadvantages Of The Franchise Modeldoes not solve existing problemsinitial development costsentering a new business: new expertiseprofile ‘problems”

Outline

About Franchise

The trends

Buy a franchise

Franchise agreement

Ensure franchise success

FOOD

hotel

Hospital/Clinic

Auto service

Retail

Buying a Franchise The franchisee is the buyer of a franchise.

The franchisor is the seller of a franchise.

franchisee the buyer of a franchise who is given the right to the franchisor’s product, process, or service

franchisor the seller of a franchise who is giving the buyer planning and management expertise

About franchise

A franchise is formal

permission, like a license, to use the name and products of a

company.

A franchise business is a method a

company uses to distribute its products or services through retail outlets owned

by independent, third party operators

Franchising is based on mutual trust between the

franchisor and franchisee

What is a franchise business? What is franchising?What is franchise?

About franchise

The company that grants the independent

operator the right to distribute its

trademarks, products, or techniques

The independent, third party business

person distributing the franchiser's products or services through

retail or service outlets

Product/trade name franchising

Business format franchising

Franchisee Two forms Franchiser

What is franchising?“A franchise operation is a contractual relationship between

the franchisor and franchisee in which the franchisor offersor is obliged to maintain a continuing interest in thebusiness of the franchisee in such areas as know-how andtraining; wherein the franchisee operates under a commontrade name, format and/or procedure owned or controlledby the franchisor, and in which the franchisee has or willmake a substantial capital investment in his business fromhis own resources.”

- Definition by International Franchise Association

What is franchising?ó Legal and commercial arrangement concerning the

successful business of a franchisoró Use of franchisor’s trade name, format, system

and/or procedure under licenceó Means to raise capital and expand quicklyó Assistance to franchiseeó Marketing, management, advertising, store design,

standards specificationsó Payment by franchisee by way of royalty, licensee fee

or other means

What is franchising?Franchising is more than distributorship

ó Extends to an entire operation or method of businessó Greater assistance, control and longer durationó Distributor merely re-sells products to retailers or

customers

TYPES OF FRANCHISE

ó3 main types of franchise:

ó Product distribution franchise; ó Business format franchise; andó Management franchise.

Produces the syrup concentrate

Sells the syrup concentrate

FRANCHISEE Produces the final drink

Retail Stores

Restaurants & F&B Outlets

Vending Machine

Operators

PRODUCT DISTRIBUTION FRANCHISES

BUSINESS FORMAT FRANCHISING

ó In a business format franchise, the integration ofthe business is more complete.

ó The franchisee not only distributes thefranchisor’s products and services under thefranchisor’s trade mark, but also implements thefranchisor’s format and procedure of conductingthe business.

A contractual business agreement between a manufacturer or another

supplier and a dealer to produce and market the supplier’s good or service.

What is Franchise?Franchise is a license granted by a company (the franchisor) to an individual or firm (the franchisee) to operate a retail, food, or drug outlet where the franchisee agrees to use the franchisor's name; products; services; promotions; selling, distribution, and display methods; and other company support.

How Franchising Workó An individual who purchases and runs a franchise is called

a "franchisee”.ó The franchisee purchases a franchise from the "franchisor”.ó The franchisee must follow certain rules and guidelines

already established by the franchisor, and in most cases the franchisee must pay an ongoing franchise royalty fee, as well as an up-front, one-time franchise fee to the franchisor.

“Although franchising was conceived and born in the west its future undoubtedly lies in the emerging economies of Asia.

The growth and development of franchising in the most populated and, in a franchising sense, the most undeveloped, region of the world is already well advanced.

The expansion of established international systems has alerted governments, the business community and consumers within the disparate countries within the region to the unique attributes of the business format franchise model and to its economic and commercial benefits.”*

* Prof Andrew Terry, University of New South Wales and Special Counsel, Deacons, LAWASIA Conference, 2008

A conceptual overview of franchising in Asiaó Asia has 60% of the world’s population, and 7 of the 10 most populous

countries.

ó The biggest trends are the expansion of the economic impact of franchising throughout the Asian region, and the continued preference of Government for regulatory models rather than relying on market forces or self-regulation.

ó The immaturity of business regulation and the administrative difficulty of transacting are features of many Asian countries. There is often a divergence between franchising law and franchising practice. It is not just a question of legal compliance. It is often important to win the hearts and minds of regulators as to the viability of the business concept and perhaps the commitment of the foreign entity to the market.

Population Franchise Systems Date & Source

Australia 20m 960 2006 FCA

China 1.3bn 2800 2007 CCFA

Hong Kong 7m 100 2007

India 1bn 850 2008 FAI

Indonesia 220m 185 2004 Austrade

Japan 130m 1194 2006

Malaysia 24m 318 (registered) 2007

New Zealand 4m 390 2007 FANZ

Philippines 89m 1000 2007

Singapore 4.5m 420 2007 WFC

South Korea 48m 2211 2005 Austrade

Taiwan 22m 1124 (chains) 2006 CCFA

Thailand 65m 150 2007 WFC

Vietnam 80m 70 2007 VNA

Franchise’s major growth In Indonesia

Franchise sector in Travel

Franchise trend in the Hotel business

The Trends

WHY DON’T YOU FRANCHISE?

Lower Failure Rate

Help with Start Up and Beyond

Buying Power

Star Power

Profits

Advantages

WHY DON’T YOU FRANCHISE?

Their Way or The Highway

Ongoing Costs

Ongoing Support

Cost

Shark-Infested Waters

Disadvantages

Franchise Agreement

Document

Cornerstone document of the

franchisee--franchiser

relationship

Provisions covering

The obligations of the franchiser and franchisee

regarding operating the

business

Legal advice

Get a specimen contract for a solicitor to review.

What's in a franchiseagreement?

Tips on franchiseagreements

What's a franchiseagreement?

Areas covered by a typical agreement

Fees

Term

Territory

Restrictions

Support

Exit

A typical agreement

Why to ensure your Franchise?

do certain

things to ensure

that success

Franchises are unique

maintain a good relationship with your franchisor

Protected territory is granted

find the best business location

take care of financial matters

manage your resources

And how to ensure ？

develop a marketing plan

FRANCHISEES IN SINGAPORE

ó Generally young and well educatedó 62% below 40 years oldó 57% had post-secondary educationó 32% own their own outletsó 46% occupy the outlets as tenants

PERTIMBANGKANó Penduduk bertambahó Peningkatan daya belió Fokus pada orang mudaó Mobilitas makin tingguió Peluang usaha tidak berulangó Keahlian management dan business senseó Pilih bisnis model yang tepat

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