Franchisee Perceptions and Relationships

This assignment delves into the perceptions of independent small business owners regarding their relationships with franchisees. It examines various aspects of these relationships, drawing upon relevant academic literature and research findings. Students are expected to critically analyze existing studies and perspectives on franchisee-business owner interactions, considering factors influencing their dynamics.

Dissertation Proposal
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Contents
Contents...........................................................................................................................................2
TITLE..............................................................................................................................................3
INTRODUCTION...........................................................................................................................3
RATIONALE OF THE STUDY.....................................................................................................3
What is the research issue?.........................................................................................................3
Why is it an issue?......................................................................................................................3
Why is it an issue now?...............................................................................................................4
What could this research shed light on?......................................................................................4
CHAPTER 2 Literature Review......................................................................................................4
CHAPTER 3 RESEARCH METHODOLOGY..............................................................................6
REFERENCES..............................................................................................................................10
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TITLE
To determine the challenges and opportunities of franchising in the fast food sector in
UK.
INTRODUCTION
The fast food industry has a wide scope in UK. It is earning a good profit since many
years and has various more opportunities to offer in the market. On a broad level it is found that
the fast food business is dominated by few big players in UK such as KFC, Burger King,
McDonalds etc. there is a big rivalry among each one of them and they are giving a close
competition to one another (Baggaley, 2014). Franchising is a process through which right to
sale is given to another group or individual by the owner of a brand against which a fixed amount
is being paid. In UK this type of ownership has its both positives and negatives and therefore
before doing the selection of ownership type it is required that proper evaluation is done so that
expected goals and objectives are achieved. The major objective of this proposal is to identify
different opportunities and constraints that are faced while going for franchise ownership in fast
food industry in UK (Dhingra and Parker, 2015).
RATIONALE OF THE STUDY
What is the research issue?
Demand in the fast food business has raised to a great level and this has attracted more
and more investors to invest in the same. There are a number of options which a business man
has to enter in the market like going for partnership, doing sole proprietorship, taking a franchise
etc. Since the market conditions of every place is different it is important that before doing the
selection of a particular type it is properly investigated that how much positive changes of
growth will it provide (Dant and Grünhagen, 2014). This is the issue to the same research in
which both the aspects of franchise business in food industry of UK will be studied in detail.
Why is it an issue?
To provide true image of the market to the investors is required as this way it act as a
source of information to plan the business activities. Due to tough competition and different
culture of UK franchise business faces a mix response in the market. This way it becomes a
major issue to understand the market of UK so that it can be decided that weather to enter as a
franchise is a good option or not for the business (Leeand, 2015).
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Why is it an issue now?
The food trend has raised to a great extent and therefore more concentration needs to be
given to each aspect of the same (Stobart, 2016).
What could this research shed light on?
Highlighting the positive and negative of franchise business type in food industry of UK
will be the objective of this study. The result of this research will help in understanding the
market in detail and it will be easily concluded that what all opportunities an entrepreneur will
have if he starts the business by choosing franchisee as option of ownership (Davidson and Sahli,
2015).
Aim
To determine the strategic opportunities for businesses in the fast food sector in the UK from
using franchising as the ownership model.
Research Objective
 To analyse the food industry of UK
 To analyse the opportunities which a franchise food business has in UK
 To analyse the difficulties faced in UK food industry while entering with a franchise
ownership.
Research Question
 What are the advantages to an individual starting business in food industry with keeping
franchise as a method of ownership in UK market?
 What are the barriers faced in the UK food industry by the entrepreneurs starting business
by taking franchisee?
 What is the impact on profitability by using franchising as the ownership model in UK
food industry?
CHAPTER 2 Literature Review
What is franchising and what all opportunities it has in food market of UK
Dada, Watson and Kirby, (2015) says that in contrast with health and fitness franchises,
fast food sector franchise are the most popular and known one fro the owners. Franchise is a
complex section of business society, but if proper research is done before adopting and
implementing as well as in finding the best suitable franchise then it may return tremendous
success in business commodity. The author says that
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Franchise is a legal and business agreement between two commodities which permits one
commodity i.e. the franchise, to sell or market products and services using their trademarks and
logos as well as operating methods with their strategies and policies i.e. franchisor. In the views
of Jones, Hillier and Comfort, (2016) he business Format Franchising is most common and
widely accepted franchising methodology or strategy throughout UK. This methodology or
strategy stated as, franchisor grants permission to the franchisee for to use their logos and
trademarks with turnkey system for developing business. Lew and owska, (2014) put light on
different positive chances that an entrepreneur has when doing business by adopting franchise
form of ownership. He says that he biggest opportunity in ownership of franchisee model by
adopting and implementing Business Format Franchising strategy is risk of business failure in set
up a new small or big business is completely negligible as compared with setting up a well new
organisation specially in this specific food industry. This happens because of fact that an ethical
franchisor has adopt and test as well as tried all suitable scientific business models or theory
practically or in real life and find and solve all possible small-small hurdles or problems which
might came before setting up a new business. It's a well-known fact that in UK less than around
7% of franchise owners fail within their first 3 years tenure, In contrast 25% new start-ups or
new small business would lose its goodwill as well as fail its financial debts. Perrigot, Hussain
and Windsperger, (2015) adds that this type of strategy provides a well healthy and suitable
environment for franchisee or small franchise owner businessman to compete with big individual
corporate or small local businessman. Small franchisee might take advantage of economy scale
of franchisors. He also says that this franchising methodology provides a fruitful atmosphere for
growing or expanding a business in a cost effective manner. Franchisee will not have to invest
any additional cost in new premises or staff. Because of the franchisor reputation or goodwill in
competitive market, the franchisee trade its business in a more suitable manner under a well
respectful and recognised brand or trade name and this provide a distinct advantage over
independent small business competitor or big corporates. Curran and Burrows, (2015)
highlighted that new franchisees will easily get or impart trained staffs from their franchisors,
and this feature of franchising climbs a positive steep learning and sales curve in a very short
duration of time and these type of features helps in enhancing chances of franchisee commercial
enterprise consecutive considerably. Franchisees has an advantage which they get from their
franchisors i.e. they adopt and implement franchisors management and administrative experience
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for their business to run and govern in a smoother and efficient manner. Franchisors also assist
their new franchisee by supporting trouble shooting services as well as provide backups which
helps in daily routine business life. (Chen and et.al., (2015) add more view to the opportunities
that doing business with this ownership has. He says that franchisors have an speciality or ability
to crook a baker, butcher, into a fryer of chicken by providing a training within their premises
through their trained professionals. The trained professionals train the new establishment staffs
about how to manage and run a business in a professional manner and they share their product
and services, information’s and recipes or methodologies with franchisee for operate a small or
big business in a healthy an fruitful manner. Bowie and et.al., (2016) says that a small business
who owned a franchisee are able to promote their products and services at various platforms
which are not in range of a small businessman. Because of a well respectful and well run
franchise business or brand which is owned by a small businessman, businessman is no longer
focus or concentrate on selling goods and services but at the same time they receive benefit from
round-the-clock research and development from their franchisors and it helps in enhancing their
business growth as well as franchised system or franchisor. Lloyd and Payne, (2014) In today's
modern eco-friendly and health conscious world, there is ample scope or evidence that
healthiness of fitness and fast food franchising contradict each other’s. However, there is a
tremendous success in the field of fast food business in specially in UK and this happens because
of franchisor motivation support to their small medium enterprises. Franchisees are the one who
share innovative and creative ideas as well as strategies with small medium enterprises for
enhancing performance and productivity. It's an evergreen industry or sector which has huge
potential in future for attracting more and more customers (Liu and et.al., 2014).
CHAPTER 3 RESEARCH METHODOLOGY
This leading research is based on identifying the different strategic opportunities available
for Fast food industry in UK using franchising as a business type. For researching in a fruitful
and efficient manner, researcher or investigator will proceed the following considerations in
research specification (Taylor, Bogdan and DeVault, 2015). In this section it is discussed that
what all methods will be utilised in order to collect the data so that maximum information can be
assembled in an appropriate manner.
Research Design: This research design methodology is expressed or identified as
blueprint, which provide a path for analysing and collecting or evaluating the information as well
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as data for attaining results through researches or studies. There are different or assorted form of
research design i.e. Descriptive as case study, Correlation as observation study, Semi-
experimental as field experiment, Literature and system review. In this present study it also
provide assistance to researcher or investigator for effectively answer of required questions and
makes proper judgements or functionary.
Research Techniques: In this following proposal or content, analysis of gathered
information is very essential and important through which appropriate or suitable results can be
obtained and receive from the investigation or study. There are two major types of research
techniques or methodologies i.e. qualitative as well as quantitative. In this leading proposal,
qualitative research methodology will be used or applied this happen because data or information
will be collected through surveys within organisation directly from employees (Mackey and
Gass, 2015).
Data Collection Method: Assembling of information or collection of data is most
essential and important component of research and investigation for any scholar regarding the
content or subject. In this leading proposal or research, scholar uses primary as well as secondary
data collection method. Collection of information requires surfing and gathering knowledge and
information from several different or assorted resources. In primary research context, scholar
conduct surveys directly from customers and assemble their views regarding organisation
products and services. In the contrary, secondary data or information is collected from blogs,
third party organisations, books, websites and many more.
Sampling Method: Through this random sampling methodology, scholar select number
of customers randomly who use or purchase the company's products or services and assemble
their views for attaining research or proposal objective or goal (Lewis, 2015).
Accessibility Issue: Before formulating a research report or proposal, scholar have face
so many hurdles and problems for collection information from different peoples of different
backgrounds. Scholar first face problem because of funds and resources or equipment’s which is
required for data collection and this issue is because of organisation itself. In order to gather or
collect information from different customers of assorted type of backgrounds and thinking,
scholar requires permissions from different agencies and organisations. In the contrary, several
times it happens customers are not shown their interest in filling or giving their views or respond
(Vaioleti, 2016).
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Data Analysis plan: It's a technique or process through which scholar consider result or
outcome after collecting information as well as data from several respondent of different
backgrounds from various sources. Data analyse is a systematic, structured and statistical method
or technique under which a large amount of differentiate data is to be sorted and final conclusion
is to be formulated for achieving proposal objective.
Ethical Consideration: In this leading proposal some ethical consideration is to be
followed which are discussed below.
 Scholar uses relevant information from its respondents for efficient and fair
outcomes or result.
 Scholar must use standards and disciplines as well as institutions for promotions.
Strategies which are followed by scholar must be implemented in a ethical and fair manner
(Cicourel, 2016).
 For collecting data, scholar need not to make environment of forcing or making
pressure on respondents to give their views or filling surveys questions
necessarily.
 Collection of information from various respondents must be taken in a systematic
and fair manner as well as relevant to objective of proposal or research.
Timetables
In order to complete the whole task on time it is required that the whole project is divided
into different activities. Gantt chart is an effective tool through which allotment of time is done
to different task according to the priority and nature of work. The given below chart shows the
time taken by different activities in a proper manner (Brinkmann, 2014). By dividing the
different activities according to the priority and urgency it is ensured that no important task is
missed out.
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REFERENCES
Books and Journal
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Dant, R.P. and Grünhagen, M., 2014. International franchising research: Some thoughts on the
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Lee, Y.K., Kim, S.H., Seo, M.K. and Hight, S.K., 2015. Market orientation and business
performance: Evidence from franchising industry. International Journal of Hospitality
Management, 44, pp.28-37.
Dada, O., Watson, A. and Kirby, D., 2015. Entrepreneurial tendencies in franchising: evidence
from the UK. Journal of Small Business and Enterprise Development, 22(1), pp.82-98.
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some
personal reflections on corporate challenges and research agendas. International
Journal of Contemporary Hospitality Management, 28(1), pp.36-67.
Lewandowska, L., 2014. Franchising as a way of creating entrepreneurship and
innovation. Comparative Economic Research, 17(3), pp.163-181.
Perrigot, R., Hussain, D. and Windsperger, J., 2015. An investigation into independent small
business owners’ perception of franchisee relationships. International Journal of Retail
& Distribution Management, 43(8), pp.693-711.
Curran, J. and Burrows, R., 2015. The social analysis of small business: some emerging
themes. Entrepreneurship in Europe (Routledge Revivals): The Social Processes, p.164.
Chen, E., Flint, S., Perry, P., Perry, M. and Lau, R., 2015. Implementation of non-regulatory
food safety management schemes in New Zealand: A survey of the food and beverage
industry. Food control, 47, pp.569-576.
Lloyd, C. and Payne, J., 2014. ‘It’s all hands-on, even for management’: Managerial work in the
UK cafe sector. human relations, 67(4), pp.465-488.
Liu, T.C., Victor Chen, J. and Hsu, P.Y., 2014. Opportunity recognition and cooperation
flexibility of entrepreneurial franchisees. Industrial Management & Data Systems.
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Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods: A
guidebook and resource. John Wiley & Sons.
Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design.
Routledge.
Lewis, S., 2015. Qualitative inquiry and research design: Choosing among five approaches.
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Cicourel, A., 2016. Method and measurement in sociology.
Brinkmann, S., 2014. Interview. In Encyclopedia of critical psychology (pp. 1008-1010).
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Springer New York.
Vaioleti, T.M., 2016. Talanoa research methodology: A developing position on Pacific research.
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Panneerselvam, R., 2014. Research methodology. PHI Learning Pvt. Ltd..
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