Franchise System and Business Strategies

The provided document explores the concept of franchise systems and business strategies in various settings, such as food chains and market expansion. It discusses the importance of brand image, product attributes, pricing strategies, and marketing activities in achieving success. The document also touches upon the terms of franchise agreements and the relationships between franchisors and franchisees. Overall, it offers a comprehensive understanding of the factors that contribute to the growth and sustainability of businesses within a franchise system.

WHAT ARE THE FACTORS TO BE CONSIDERED?
BY ENTREPRENEURS WHO ARE LOOKING FOR
BUSINESS EXPANSION TO EST

TABLE OF CONTENTS
FINDINGS.......................................................................................................................................1
DISCUSSION..................................................................................................................................9
APPENDIX....................................................................................................................................11

FINDINGS
Theme 1: Company description and position in an industry
Interpretation: Interviewee A has replied that individual is working as manager in ABC Ltd, it
is small size food chain business. Interviewee B has replied that individual is working as head of
customer service department in XYZ food chain firm; it has one outlet in central London.
Interviewee C has answered that person working as manager in Rosy Corporation; it is small size
family food retail firm. Interviewee D has answered that he is marketing manager in Testy food”
which is small size food brand that has good reputation in England. Company has limited
financial resources and has employed 10 employees. Interviewee E has replied he is in FHY Ltd
at the position of manager. Enterprise is small size family business which is run by 2 brothers. It
has one outlet in central London.
Theme 2: purpose of adopting franchising strategy
Interpretation: Interviewee A, C has said that main aim of our company is to enter into global
market and serve international consumers. Interviewee D, E answered major goal of firm is to
raise profit of the company and sustain in the market for longer duration. Interviewee B has said
that enterprise has purpose to become leading food chain brand across the world. From the
above data it can be interpreted that maximum answerers have replied that one of the main
purpose of entities is to raise their profit. It can enhance their brand image and support them in
sustaining in market for longer duration.
Theme 3: Type of franchise adopted
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Interpretation: Interviewee A, C, D replied that our company is planning to take support of
Product and trade name franchising option because by this way entity will be able to sell its
products by using franchisor’s trademark. As local people of particular country know the
franchisor thus, using their trademark and logo will help in attracting more people towards out
products and services. Interviewee B, E answered my firm is planning to use business format
franchising option because this would be easy option to start work in other location. It will help
in minimizing chances of failure of enterprise in international market. From the above data, it
can be interpreted that product and trade name is the great franchising strategy because it helps
companies in utilising brand and image of franchisor in effective manner. By this way enterprise
can minimize its risks and can attract many people towards the brand in new location. For
example, KFC has given franchise to those franchisors in different locations those who are
already performing well in this market and have good brand image. Their trade-name builds trust
in the mind of consumers then they buy products and services of the organization.
Theme 4: Effectiveness of franchising strategy in achieving goal
Interpretation: Interviewee A, C, D replied that franchising option will impact positive on the
firm because by this way entity will be able to deal with international consumers and will be able
to develop its global brand image. Interviewee B, E answered that this will help in reducing cost
of operation and by this way organisation will be able to generate more revenues. From the
above data it can be interpreted that franchise strategy is most essential part of business. This can
2

help the company in growing well and enhancing its profitability. It reduces risk of failure and
increase brand image globally. By this way company can accomplish its objective effectively.
Theme 5: (A) business should have a proven track record
Interpretation: Interviewee A, B, C, D, E replied that Yes I believe that business should have
proven track record because in the absence of this, entity will not be able to sustain in new
market for longer duration. From the above data it can be interpreted that business definitely
should have proven track record. If they have good name in the market, then it would support in
entering into new market easily and sustaining in this market for longer duration.
Theme 5: (B) trading name or style can protect business
Interpretation: Interviewee A, B, C, D answered that Yes we have trading name and this can
product my firm from future issues. Interviewee E said No my company does not have trading
name. From the above data it can be interpreted that business need to have trading name because
this can help in protecting style and brand image of the firm. By this way no other competitor
will be able to copy material and products of the enterprise.
Theme 5: (C) An experienced management team
Interpretation: Interviewee A, B, C, D, E replied that It is essential to have experiences
management team. From the above data it can be interpreted that it is essential to have
experienced management team. This can support in performing well in new location and
managing operations properly. If managers have good experiences and entity has experience
team members then they will perform well and will conduct operations in efficient manner.
3

Theme 5: (D) Containing procedures, systems, expertise, skill can help business
Interpretation: Interviewee A, B, C, D, E answered that Yes because training can help in
enhancing skills and knowing more about new location. By this way it would be little easy for
staff to deal with consumers. From the above data it can be interpreted that containing procedure
and skills of business can be developed through training or operations manual.
Theme 6: characteristics of a suitable franchise partner
Interpretation: Interviewee A, B, C, said that Company is looking in franchise partner that
company must have good brand image in this location and has large number of consumers.
Interviewee D, E replied firm is looking in franchise partner that firm must have good financial
resources and has strong distribution channel. From the above data it can be interpreted that it is
essential that franchisor partner needs to have good brand image and they should be established
in existing market. This will help company in changing mind of consumers and making them
positive towards the new products.
Theme 7: (A) Growing business without the capital
Interpretation: Interviewee A, C, D, E, B answered that I want to give 4 score to this point
because growing business without capitals challenging but can help my firm in earning more
revenues. From the above data it can be interpreted that it is essential to have adequate money so
that entity can enter into the new location easily. This helps in establishing brand in new location
effectively.
4

Theme 7: (B) To gain increase profitability and organizational leverage towards faster growth of
business
Interpretation: Interviewee A, B, C, C, D, E replied that 5, enhance profitability was very
important that is why entity has adopted franchise option. From the above data it can be
interpreted that maximum people have viewed that franchise option is helpful in raising
profitability of company and it can support in growth of business unit.
Theme 7: (C) Penetration in new markets
Interpretation: Interviewee: B, C, D have replied that 3 score because it has given chance to
develop company in new market but it was not that much essential at this time. Interviewee A, E
have given 4 score, penetration can help my enterprise in developing brand image.
Theme 7: (D) To have simpler management and less recruitment
Interpretation: Interviewee A, B, C, D, E have replied 2 score, it was not the main target of
applying franchise strategy. Because company knew that it will have to hire more candidates.
Theme 7: (E) obtain greater commitment from franchisee
Interpretation: Interviewee A, B, C, D have given 4 score and said it is important. On other hand
Interviewee E gave 3 score and replied It is moderate important.
Theme 8: Resource for supporting new franchisee
Interpretation: Interviewee A, B, C answered company has financial resources, skilled employees
and physical resources. Interviewee D, E said that enterprise has technical resources and human
resource. From the above data it can be interpreted that company must have skilled employee’s
5

and adequate financial resources so that it can expand its business in the new location effectively.
Skilled people contribute well in establishing brand in the international market and financial
capability support in making sound investment. This helps in generating more revenues and
growing well.
Theme 9: adequate value proposition
Interpretation: Interviewee A, B, C, D said yes, firm has adequate value proposition to sell to
other business partner. Interviewee E replied No, it does not have. From the above data it can be
interpreted that maximum answerers have replied that they have adequate value propositions and
strong market position to sell to other business partners. This has supported them in gaining trust
of franchisor and making agreement with them.
Theme 10: importance of prior experience
Interpretation: Interviewee A, B answered that it is very important because by this way company
can utilise money well and can provide goods and services to consumers as per their
requirements. Interviewee D, E, C replied it is very important because this helps in satisfying
consumers by offering tasty food items. From the above data it can be interpreted that prior
experience can be beneficial in making sound decision and utilising resources well. This reduces
chances of failure in the new market.
Theme 11: characteristics that is most important in finding your suitable franchise partner
Interpretation: Interviewee A, B, C said that Alignment of values and ethics is most important
and 5 score is given. Commitment is moderate necessary and score of 3 is given. Communication
should be clear between franchising partners and score of 4 can be provided. Obligations and
responsibilities should be cleared between them and 3 score is given. Professional code of
conduct is important and score of 2 is given. Interviewee D, E said that professional code of
conduct is most important out of various characteristic suitable for best franchise partner. It can
be justified that code of conduct should prevail so that uninterrupted operations may be
conducted in a better way and complete harmony may be found.
Theme 12: Company has strong and sustainable business model
Interpretation: Interviewee C, D replied that Yes, strong business model will be favourable in
attaining enhancing new products and services in new markets. This means that sustainability
will be achieved by deploying repetitive business model. It would be achieved by meeting needs
of present scenario and thus, investment in future plans will provide sustainability to business.
6

B, E, a said external conditions will be met accordingly because sustainability completely relies
on such conditions to remain competitive in society. They believe that external conditions need
to be assessed so that business may be injected. First of all, perfect shape of factors is needed so
that sustainability can be analysed and strategies can be met with ease.
Theme 13: risks associated with multi-unit franchising food chain businesses
Interpretation: Interviewee B, E answered yes, multi-unit franchising is a risky proposal. The
main reason behind is that business incurs more risks of taking multi-unit franchises which
incurs more of risk such as low profitability and other reasons. If one franchisee is not
performing well as expected, it would severely affect all of franchisees. It is required that more
of the franchisees should not be used as customer's views business as a whole irrespective of the
fact it has one unit or more. A, C, D said no, it is beneficial for the business. This is because
when more number of franchisees are present, higher is the profits achieved. It has various
benefits to business as it is able to operate in more units and expansion takes place. In relation to
this, it can be assessed that sales are maximised up to a high extent leading to more profits in
hand. It helps business in expanding its customer's base with much ease. Furthermore, there is an
opportunity of building equity and as such, business expands quite easily. To overcome if risks
exist, proper strategies will be formulated accordingly.
Theme 15: structure the franchising fees, and distribution of the profit
Interpretation: A, B, C, E interviewees said perfect plan has to be made so that franchising
procedure may be streamlined in a better way. This is essentially required as royalty fees is to be
paid to franchisor for making payment to him for availing services in the best possible manner.
The structure of royalty fees would be based on percentage of sales made and accordingly will be
paid to franchisor in accordance to agreement made. On the other hand, distribution of profit
would be made on designating compulsory payments to company and this will reveal part of
profits to be distributed to them. Moreover, franchising fees such as promotional, advertising
expenses needs to be paid to franchisor for getting over services quite effectually.
Interviewee D said structured plan has to be implemented by which franchising fees,
procedure of distribution of profit may be attained in a better way. This is required as I believe
that royalty fees should be fixed and not on the basis of percentage of sales. It is beneficial
because even on low profits, part of profit need not to be shared and make payments to the
7

company or big franchisor. It will enhance profits as only fixed payment need to be made leaving
alone major part of profits. This is required by which company may be able to expand effectively
because organisation will save amount of royalty in effective way. Moreover, for structured
arrangements, agreement should be made in FDD (Franchise Disclosure Agreement). For
making payments or fees, EFT (Electronic Fund Transfer) will be used and as a result, structured
procedure would be followed.
Theme 15: factor is most and least important according to franchise system
Interpretation: Interviewee A, B, D, E, C
(A)
Geographical location is most important as where more of the population is situated, sales
will be more. Hence, 5 score is given because it is the most preferred location for the fast food
chain stores to be opened surrounded by wider geographical location. This will provide with
better results to company because firm's profits get enhanced.
Interviewee D, E, C
(B) site convenience is suitable enough because firm will have adequate facilities by providing
services in the best possible manner and that too at convenient place leading to more of the
benefits. Score for convenience is 3 as it would be required for the business to increase sales with
ease. Maximisation of profits would be achieved and also at franchisee will be able to cut down
distribution costs up to a high extent. Central facilities, accessibility are also much of elements
which has dual benefits to franchisee as he will effectively sell-off products which can be easily
accessible and thus, firm will be benefited. On the other hand, competitive intensity nearer could
affect business as strategies need to be formulated so as to overcome competition. Hence, it
would be feasible for food chain to earn profits and enhance customer's base.
Interviewee A, B answered franchise location in terms of accessibility is of utmost
important as it will provide clarity in identifying accessible system that will be profitable in
getting most of combination of goods and services and also in streamlined manner. Customers
who can come regularly at a particular site would claim for visibility and accessibility which will
be priority for the SME to explore it so as to retain customers and attain new ones. Hence, on site
accessibility comes foremost in mind of firm leading to enhanced revenue.
(C)
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Interviewee A, B, C said that brand image and brand awareness is most important in franchise
system. This is because when brand is decreased, rivals may overrule business leading to
substantial loss up to a high extent. Moreover, business may lose customer's base. Thus, score of
4 is given.
Interviewee E, D said in this scenario, business image is essential for expanding to new markets
in the eastern countries. Thus, overall score of 3 has been provided.
(D)
Interviewee A, B, C, D, E said product attributes are required to be transferred to others so as to
focus on more on quality of commodities. In addition to this, food moves from farmers to
producers and then is being provided to consumers finally. I believe that food chain may be
strengthened so that business can focus on quality and processes may be bifurcated for faster
delivery.
(E)
Interviewee C, D, E have replied franchising is required in structuring price of products at new
location. Score of 3 is given.
Interviewee B, A said yes, it would be possible for increasing operation in new location.
(F)
Interviewee C, D, E, A, B said marketing and promotional activities are required for increased
sales and score of 3 is given.
Theme 16: Predicting effectiveness of franchise system to gain profit
Interpretation: Interviewee A, B, D said it can be predicted by formulating strategies in
appropriate manner by gaining profits in geographical location.
Interviewee C, E said proper analysis will be conducted to initiate strategies accordingly and
thus, revenue may be increased.
Theme 17: new pricing strategy for developing operations in new location
Interpretation: Interviewee A, B, C, D, E have replied pricing strategy in new location will be
penetrating pricing for gaining more of customers. Hence, sales will maximise.
Theme 18: structure the franchise agreement or contract
Interpretation: Interviewee A, B, C have replied that term of franchise agreement would be 5
years and it would be renewed after five years. Time length would be appropriate to generate
profit in order to structure the franchise agreement, company will fist conduct investigation and
9

will prepare necessary documents and then legal agreement will be made. Interviewee D, E said
that it would be of 3 years and it would be renewed but if entity fails to generate profit in three
years then it would be cancelled and will not be renewed. Franchise agreement will be done in
front of legal authorities by following all guidelines. From the above data it can be interpreted
that 5-year term is appropriate because in this duration company will be able to develop healthy
relationship with franchise partners and will be able to generate profit.
Question 19: Relationship between company and franchise partner
Interpretation: Interviewee A, B, C, D, E answered that company will have strong relationship
with franchise partner and in order to sustain in market for longer duration entity will conduct
time to time meeting with stakeholders so that mutual understanding will be raised. In the
condition of conflict, entity will adopt negotiation strategy to resolve such problems. It will try to
create win-win situation for both parties so that enterprise can generate profit and can build
strong relationship with franchise partner.
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DISCUSSION (Please put evidence and refer to the evidence from given
articles and papers on franchising. Please cite the work as well)
Business earns profits by satisfying customers at large. This is required so that it may be
able to attain good market share by enlarging its customer base. In addition to this, business after
earnings sufficient profits, makes decision to expand in new market so as to garner more share
and enhance consumer base. To accomplish this, SME's have option to take franchise of
established firm by which it may easily lure customers. Franchising is a concept which can be
adopted by food chain brand as type of strategy for expansion purpose (Franchising. 2018). It is
one of effective method to attain business processes in favour of another party with a mutual
agreement between franchisor and franchisee. In other words, in franchising, franchisor grants
his expertise, business ideas and processes to franchisee to effectively start business legally.
Franchisee can use trademark for producing products or services by paying royalty fees and one-
time payment. Franchisor is benefited as business can be expanded rapidly and earnings can be
expanded regularly.
Main characteristic of good franchise is risk aversion. It means that successful
franchisees try to take some sort of risk but they would like to have proper control on business
operations. However, they take franchise from proven records of successful company which
automatically reduces the risk (Sun and Lee, 2018). In relation to this, it is essentially required
that franchising should be beneficial for franchisee so as to enlarge its market share.
Entrepreneurs will be able to attain new target markets of East in effective manner. Strong
people skills are another characteristic of franchising which is important so that strong
interactions can be made with employees and customers. The least important characteristic is
coaching. It is required when franchisee takes business of less profitable one and as such, seeks
advice regarding activities to be conducted in that manner which would led path of profitability.
Franchising strategy is to be adopted by SME which are Business format franchising and
Product and Trade name franchising. In relation to the interview conducted, Product and Trade
name franchising strategy would be adopted by businesses by which name of franchisor, logo
and trademark will be used in order to sell products quite effectually (Chen, Liu, Zeng and
Azevedo, 2018). Furthermore, Business format franchising will not be adopted as interviewees
have said much favour of other type of strategy. In this, franchising, franchisor completely
teaches franchisee regarding format of business including various activities such as selling,
11

inventory management, procedures relating to personnel’s and accounting. The franchising will
help SME to effectively attain market share by rapidly expanding its reach to new target markets.
Hence, profitability position will be enhanced in a better way and thus, business can accomplish
set targets with ease.
12

REFERENCES
Books and Journals
Sun, K. A. and Lee, S., 2018. Effects of franchising on industry competition: The moderating
role of the hospitality industry. International Journal of Hospitality Management. 68. pp.80-88.
Chen, Y. S., Liu, C., Zeng, Q. and Azevedo, R. F., 2018. E-Business and Analytics Strategy in
Franchising. In Operations and Service Management: Concepts, Methodologies, Tools, and
Applications (pp. 389-406). IGI Global.
Online
Franchising. 2018. [Online] Available Through:
<http://www.businessdictionary.com/definition/franchising.html>.
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APPENDIX
Interview transcripts
Interview question 1
Interviewee A
Transcript: I am working in ABC Ltd , it is small size food chain business. I am working as
manager in the organization. Entity has 2 outlets in London.
Interviewee B
Transcript: I am working in XYZ food chain firm; it has one outlet in central London. I am
working here as head of customer service department.
Interviewee C
Transcript: I am working in Rosy Corporation; it is small size family food retail firm. Recently I
am working as manager in the organisation.
Interviewee D
Transcript: My firm “Testy food” is the small size food brand that has good reputation in
England. Company has limited financial resources and has employed 10 employees. I am
working as marketing manager in the company.
Interviewee E
Transcript: I am working in FHY Ltd at the position of manager. Enterprise is small size family
business which is run by 2 brothers. It has one outlet in central London.
Interview question 2
Interviewee A, C
Transcript: The main aim of our company is to enter into global market and serve international
consumers.
Interviewee D, E
Transcript: The major goal of firm is to raise profit of the company and sustain in the market for
longer duration.
Interviewee B
Transcript: Enterprise has purpose to become leading food chain brand across the world.
Interview question 3
Interviewee A, C, D
14

Transcript: my company is planning to take support of Product and trade name franchising
option because by this way entity will be able to sell its products by using franchisor’s
trademark. As local people of particular country know the franchisor thus, using their trademark
and logo will help in attracting more people towards out products and services.
Interviewee B, E
Transcript: My company is planning to use business format franchising option because this
would be easy option to start work in other location. It will help in minimizing chances of failure
of enterprise in international market.
Interview question 4
Interviewee A,C,D
Transcript: This franchising option will impact positive on the firm because by this way entity
will be able to deal with international consumers and will be able to develop its global brand
image.
Interviewee B, E
Transcript: This will help in reducing cost of operation and by this way organisation will be able
to generate more revenues.
Interview question 5
(A)
Interviewee A, B,C, D, E
Transcript : Yes I believe that business should have proven track record because in the absence
of this, entity will not be able to sustain in new market for longer duration.
(B)
Interviewee A, B,C, D
Transcript: Yes we have trading name and this can product my firm from future issues.
Interviewee E
Transcript: No my company does not have trading name.
(C)
Interviewee A, B,C, D,E
Transcript: It is essential to have experiences management team.
(D)
Interviewee A,B,C,D,E
15

Transcript: Yes because training can help in enhancing skills and knowing more about new
location. By this way it would be little easy for staff to deal with consumers.
Interview question 6:
Interviewee A, B,C,
Transcript: My Company is looking in franchise partner that company must have good brand
image in this location and has large number of consumers.
Interviewee D,E
Transcript: My firm is looking in franchise partner that firm must have good financial resources
and has strong distribution channel.
Interview question 7
Interviewee A, C,D, E, B
(A)
Transcript: I want to give 4 score to this point because growing business without capitals
challenging but can help my firm in earning more revenues.
(B)
Interviewee A, B, C, C,D, E
Transcript: 5,enhance profitability was very important that is why entity has adopted franchise
option.
(C)
Interviewee: B, C, D
Transcript: 3 score because it has given chance to develop company in new market but it was not
that much essential at this time.
Interviewee A, E
Transcript: 4 score, penetration can help my enterprise in developing brand image.
(D)
Interviewee A, B, C, D,E
Transcript: 2 score, it was not the main target of applying franchise strategy. Because company
knew that it will have to hire more candidates.
(E)
Interviewee A,B,C,D
Transcript: 4 score, it is important
16

Interviewee E
Transcript: 3 It is moderate important
Interview question 8
Interviewee A,B, C
Transcript: Company has financial resources, skilled employees and physical resources
Interviewee D, E
Transcript: Enterprise has technical resources and human resource
Interview question 9
Interviewee A, B,C,D
Transcript: yes firm has adequate value proposition to sell to other business partner.
Interviewee E
Transcript: No it does not have
Interview questions 10
Interviewee A,B
Transcript: It is very important because by this way company can utilise money well and can
provide goods and services to consumers as per their requirements.
Interviewee D, E,C
Transcript: It is very important because this helps in satisfying consumers by offering tasty food
items.
Interview question 11-
Interviewee A, B, C-
Transcript: Alignment of values and ethics is most important and 5 score is given. Commitment
is moderate necessary and score of 3 is given. Communication should be clear between
franchising partners and score of 4 can be provided. Obligations and responsibilities should be
cleared between them and 3 score is given. Professional code of conduct is important and score
of 2 is given.
Interviewee D, E-
Transcript: The interviewee said that professional code of conduct is most important out of
various characteristic suitable for best franchise partner. It can be justified that code of conduct
should prevail so that uninterrupted operations may be conducted in a better way and complete
harmony may be found.
17

Interview question 12-
Interviewee C, D-
Transcript: Yes, strong business model will be favourable in attaining enhancing new products
and services in new markets. This means that sustainability will be achieved by deploying
repetitive business model. It would be achieve by meeting needs of present scenario and thus,
investment in future plans will provide sustainability to business.
Interviewee B, E, A-
Transcript: It is required that external conditions will be met accordingly because sustainability
completely relies on such conditions to remain competitive in society. I believe that external
conditions needs to be assessed so that business may be injected. First of all, perfect shape of
factors is needed so that sustainability can be analysed and strategies can be met with ease.
Interview question 13-
Interviewee B, E
Transcript: Yes, multi-unit franchising is a risky proposal. The main reason behind is that
business incurs more risks of taking multi-unit franchises which incurs more of risk such as low
profitability and other reasons. If one franchisee is not performing well as expected, it would
severely affect all of franchisees. It is required that more of the franchisees should not be used as
customer's views business as a whole irrespective of the fact it has one unit or more.
Interviewee A, C, D
Transcript: No, it is beneficial for the business. This is because when more number of
franchisees are present, higher is the profits achieved. It has various benefits to business as it is
able to operate in more units and expansion takes place. In relation to this, it can be assessed that
sales are maximised up to a high extent leading to more profits in hand. It helps business in
expanding its customer's base with much ease. Furthermore, there is an opportunity of building
equity and as such, business expands quite easily. To overcome if risks exist, proper strategies
will be formulated accordingly.
Interview question 14-
Interviewee A, B, C, E
Transcript: Perfect plan has to be made so that franchising procedure may be streamlined in a
better way. This is essentially required as royalty fees is to be paid to franchisor for making
payment to him for availing services in the best possible manner. The structure of royalty fees
18

would be based on percentage of sales made and accordingly will be paid to franchisor in
accordance to agreement made. On the other hand, distribution of profit would be made on
designating compulsory payments to company and this will reveal part of profits to be distributed
to them. Moreover, franchising fees such as promotional, advertising expenses needs to be paid
to franchisor for getting over services quite effectually.
Interviewee D
Transcript: Structured plan has to be implemented by which franchising fees, procedure of
distribution of profit may be attained in a better way. This is required as I believe that royalty
fees should be fixed and not on the basis of percentage of sales. It is beneficial because even on
low profits, part of profit need not to be shared and make payments to the company or big
franchisor. It will enhance profits as only fixed payment need to be made leaving alone major
part of profits. This is required by which company may be able to expand effectively because
organisation will save amount of royalty in effective way. Moreover, for structured
arrangements, agreement should be made in FDD (Franchise Disclosure Agreement). For
making payments or fees, EFT (Electronic Fund Transfer) will be used and as a result, structured
procedure would be followed.
Interview question 15-
Interviewee A, B, D, E, C
(A)
Transcript:
Geographical location is most important as where more of the population is situated, sales will be
more. Hence, 5 score is given because it is the most preferred location for the fast food chain
stores to be opened surrounded by wider geographical location. This will provide with better
results to company because firm's profits gets enhanced.
Interviewee D, E, C
(B)
Transcript: site convenience is suitable enough because firm will have adequate facilities by
providing services in the best possible manner and that too at convenient place leading to more
of the benefits. Score for convenience is 3 as it would be required for the business to increase
sales with ease. Maximisation of profits would be achieved and also at franchisee will be able to
cut down distribution costs up to a high extent. Central facilities, accessibility are also much of
19

elements which has dual benefits to franchisee as he will effectively sell-off products which can
be easily accessible and thus, firm will be benefited. On the other hand, competitive intensity
nearer could affect business as strategies need to be formulated so as to overcome competition.
Hence, it would be feasible for food chain to earn profits and enhance customer's base.
Interviewee A, B
Transcript: Franchise location in terms of accessibility is of utmost important as it will provide
clarity in identifying accessible system that will be profitable in getting most of combination of
goods and services and also in streamlined manner. Customers who can come regularly at a
particular site would claim for visibility and accessibility which will be priority for the SME to
explore it so as to retain customers and attain new ones. Hence, on site accessibility comes
foremost in mind of firm leading to enhanced revenue.
(C)
Interviewee A, B, C
Transcript: Brand image and brand awareness is most important in franchise system. This is
because when brand is decreased, rivals may overrule business leading to substantial loss up to a
high extent. Moreover, business may lose customer's base. Thus, score of 4 is given.
Interviewee E, D
Transcript: in this scenario, business image is essential for expanding to new markets in the
eastern countries. Thus, overall score of 3 has been provided.
(D)
Interviewee A, B, C, D, E
Transcript: product attributes are required to be transferred to others so as to focus on more on
quality of commodities. In addition to this, food moves from farmers to producers and then is
being provided to consumers finally. I believe that food chain may be strengthened so that
business can focus on quality and processes may be bifurcated for faster delivery.
(E)
Interviewee C, D, E
Transcript: Franchising is required in structuring price of products at new location. Score of 3 is
given.
Interviewee B, A
Transcript: Yes, it would be possible for increasing operation in new location.
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(F)
Interviewee C, D, E, A, B
Transcript: Marketing and promotional activities are required for increased sales and score of 3 is
given.
Interview question 16-
Interviewee A, B, D
Transcript: It can be predicted by formulating strategies in appropriate manner by gaining profits
in geographical location.
Interviewee C, E
Transcript: Proper analysis will be conducted to initiate strategies accordingly and thus, revenue
may be increased.
Interview question 17-
Interviewee A, B, C, D, E
Transcript: Pricing strategy in new location will be penetrating pricing for gaining more of
customers. Hence, sales will maximise.
Interview question 18-
Interviewee A, B,C
Transcript: The term of franchise agreement would be 5 years and it would be renewed after five
years. Time length would be appropriate to generate profit In order to structured the franchise
agreement, company will fist conduct investigation and will prepare necessary documents and
then legal agreement will be made.
Interviewee D,E
Transcript: It would be of 3 years and it would be renewed but if entity fails to generate profit in
three years then it would be cancelled and will not be renewed. Franchise agreement will be done
in front of legal authorities by following all guidelines.
Interview question 19-
Interviewee A,B,C,D, E
Transcript: My company will have strong relationship with franchise partner and in order to
sustain in market for longer duration entity will conduct time to time meeting with stakeholders
so that mutual understanding will be raised. In the condition of conflict, entity will adopt
negotiation strategy to resolve such problems. It will try to create win-win situation for both
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parties so that enterprise can generate profit and can build strong relationship with franchise
partner.
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