Challenges of Franchising as Market Entry Strategy in Bulgaria: A Study of Burger King

This research proposal examines the challenges faced by Burger King in using franchising as a market entry strategy to enter Bulgaria. It explores the literature review, research methodology, data analysis, and provides recommendations for Burger King. The study aims to identify the challenges and opportunities of using franchising as a market entry strategy in Bulgaria.

RESEARCH PROPOSAL
Title : The challenges of using Franchising as market entry strategy to enter Bulgaria, a
study of Burger King in Bulgaria.

EXECUTIVE SUMMARY
This report has shown the Literature review of the Aim and objective of the research.
Further this report has shown the different tool used by the researcher in conducting the research
with the help of the Research methodology. Further it has been found out that the study has
shown the Questionnaire and the analysis of the Questionnaire to collect the primary data for the
research. In the end the report has shown the Research limitation, reflection and the
recommendation for the Burger King. This report has recommended the franchising can prove
as a efficient way as it consist of low risk and it accounts for low start-up cost. Also it will help
company to access new talent and enter the new market by investing low cost.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
BACKGROUND OF STUDY.........................................................................................................4
IMPORTANCE OF THE STUDY..................................................................................................4
LITERATURE REVIEW................................................................................................................5
SUMMARY OF LITERATURE REVIEW.....................................................................................8
RESEARCH METHODOLOGY.....................................................................................................8
PROPOSED TIME SCALE...........................................................................................................10
DATA ANALYSIS........................................................................................................................12
Findings -.......................................................................................................................................22
RESEARCH LIMITATION AND EVALUATION.....................................................................22
REFLECTION ..............................................................................................................................23
RECOMMENDATION.................................................................................................................24
CONCLUSION..............................................................................................................................26
REFERENCES..............................................................................................................................27

INTRODUCTION
Research proposal is a document proposing a research project, generally in the sciences
or academia, and generally constitutes a request for sponsorship of that research. This report
examines the Literature review of the research and also shows the summary of the literature
review. Further this report examine the Research methodology which shows the different tools
are used in conducting the research. Further this report examine the Questionnaire for the
primary data collection and the result of the Survey. In the end the report examine the Research
limitation, reflection and the recommendation for the Burger King.
BACKGROUND OF STUDY
Fast Food industry of Bulgaria has seen a good amount of the growth in the last few
years. The reason behind the same is the stronger economic growth of the nation. Another thing
which has boosted the food and beverage industry is the rapidly growing contribution from the
agriculture sector of the Bulgarian. Another positive impact for the Bulgarian food industry is
increasing spending of the consumer in the market. As the report explain that Bulgarian used to
invest their 40% income on food, beverage and tobacco.
Burger King is an American multinational chain of hamburger fast food restaurants. The
company was founded in 1953. Bulgaria is a Balkan nation which used to have Black sea
coastline, cover with variety of mountain including Danube.
IMPORTANCE OF THE STUDY
Aims : To identify the challenges and opportunities faced by using franchising as market
entry strategy by Burger King in entering in Bulgaria.
Objectives :
 To identify the challenges which is faced by Burger king by using franchising as its
market entry strategy to enter Bulgaria.
 To recommend ways in order to overcome challenges faced by Burger King while using
franchising.
Research Questions-

 What are the challenges faced by Burger king by using franchising as its market entry
strategy to enter Bulgaria.
 What are the ways to overcome challenges faced by Burger King while using franchising.
This study will help the company in understanding the issue which is faced by the burger king in
the franchising system. This study will also help the business in understanding the what is the
real concept of the Franchise. This study will also help the business in knowing the way by
which Burger king can overcome the issue.
LITERATURE REVIEW
Theme 1 : The concept of franchising as a market entry strategy.
According to Bai, McColl and Moore (2017) the term globalization means the procedure
through which companies develop international influence or initiate to start operating the
business at international level. There are various motives that influences business to go global. It
includes increasing market share, providing employment opportunities, enter into new markets
etc.
One of the theory of globalization is world system theory according to this the world is
divided into three regions and hierarchy into organized tiers. It is the immanence and centrality
of the inter state system.
There are various types of market entry strategies. Direct exporting means to sell the products
directly to another country. Other is licensing, under this company transfer rights to use goods or
service to another firm.
Another type of strategy is franchising is an agreement between franchisor and
franchisee. Under this, franchisor provides grants rights to franchisee to sell its products or
services by using the brand name and trademark of franchisor. Therefore, franchisee plays the
role of a dealer. Franchisee pays commission or fees as a compensation to franchisor.
Franchising is also a useful market entry strategy that firms uses for expansion of the business.
International mode of entering in foreign market is a major issue in the field of international
marketing.
There are various companies that adopts this strategy to expand their business like KFC,
Burger King etc. Franchising strategy is having both advantages and disadvantages. One of the

major advantage is that, company does not require investing huge amount of funds. Therefore, it
will be easy for firm to enter new market which may be otherwise restricted by government due
to regulations and policies Baresa, Ivanovic, Z. and Bogdan, (2017) critics that, there are some
disadvantage of franchising such as the revenue of company may be lower as compared to other
methods. Further, there is lack of control of franchisee over production and marketing of
products.
As per the view of Hoffman, Munemo and Watson (2016) Finding a representative in another
country for conducting the business is very helpful for entering into a new market. Another
factor that companies should consider in franchising is the protection of intellectual property
rights that are essential for franchising business. As per the Article on Bulgaria Franchising,
due to increase in purchasing power of consumers, improvement in standard of living of the
people living in country, there are various franchise firms that have entered the market such as
Burger King. Numerous fast food franchises started operating their business in major cities of
Bulgaria. There are various companies that are operating its operations in almost every country
of Europe.
According to the author Welsh and Alon (2015) company should consider certain factors
while moving at international level. These factors affect the decision of companies. One of the
major factor is culture. The difference in culture determines that whether the business would be
successful or not. Another factor is legal and regulatory barriers. Conducting business in foreign
country is achievable if firm is flexible enough to work with local regulations. Furthermore,
business should consider regulations of foreign government. The stability of local authority is
very important when company is reviewing the operations of overseas business.
Theme 2 : The challenges faced by organizations while using franchising as a market entry
strategy.
Sonwalkar, J. and Soni (2015) has pointed out in their paper, there are various challenges
an organization have to face while using franchising as a strategy to enter into a new market.
Companies also faces various challenges while starting restaurants in another countries during
international expansion. These challenges can be considered as cultural barrier, lifestyle of
people, language barrier etc. Making arrangement with franchisee for selling the products of the
firm is a complex task. Franchisee must have full knowledge of laws and regulations that are
applicable on the companies.

Welsh, D.H. and Alon, (2015) has pointed out that, one of the major challenge that
companies experiences while setting up franchising in another country is the language that
people living in country speaks. Language barrier may negatively affect the profitability and
expansion strategy of the firm. Further, another major challenge firms faces during franchising
business in the country is Culture of the country.
Generally, people of other countries prefers vegetables and dairy products in lunch and
dinner. People buy burgers and other fast food items only when the price of the product is
affordable by them. Therefore, companies faces major challenge in developing pricing strategies
to attract people to buy the products of the company. Mainly, old age people living in the country
like to visit restaurants. Therefore, it is another challenge for company to develop effective
marketing strategies for attracting young population as well. The impact of Brexit on franchisors
also depends upon the relationship of countries with European Union. Firms also require
complying various regulations of the country (Alpeza, Erceg, A. and Oberman Peterka, 2015).
As per the view of Welsh and Alon (2015) there are various firms that have used
franchising as a market entry strategy. For example – Tesco has choosen franchising strategy
fior opening 18 franchise convenience stores in countries other than UK. The move has been
viewed as major shift in strategy of the group. Another example is Sainsbury has also consider
franchising strategy to open 25 new convenience stores. It has been tough for company to
determine suitable sites.
Theme 3 : Recommendations for overcoming the challenges faced by companies while
entering into franchising.
According to Alpeza, Erceg, A. and Oberman Peterka (2015) there are different ways in
which companies can overcome the challenges they faces while using franchising as a strategy
for entering in new market. To overcome language, cultural challenges that companies faces
while entering the market in another region. Company should firstly conduct proper research of
the market. This will help the firm to determine the type of culture people living in country are
following. Management of Franchisor company should arrange training programmes for
employees that are working in franchisee business. This will help to develop the knowledge
regarding different types of languages. So that, workers that are working in restaurants will
effectively communicate with customers. Moreover, company should make efforts to build

strong relationship with franchisee. So that, they will make more efforts to increase the sales and
revenue of the company.
Alpeza, Erceg, A. and Oberman Peterka (2015) has suggested that, firms should also focus on
understanding all the rules and regulations that are applicable on franchising business. So that,
non-compliance of the policies of Government of other countries will not negatively impact the
operations of the firm. Further, it has been suggested that, company should develop effective
pricing strategy to offer products like hamburgers to customers. Management of Franchisee
should develop effective marketing campaigns to attract all age group population that is young
and old age people for purchasing the products of the firms. It should also advertise the products
on social media platforms like Facebook etc.
SUMMARY OF LITERATURE REVIEW
There are various types of key issues that are examine in the above Literature Review
such as it has explained the key challenges that company faced during franchising for entering
into a new market. It has covered challenges like developing pricing strategies, marketing
campaign etc. Literature review of other authors has provided only a limited view on
recommendations for overcoming these challenges.
RESEARCH METHODOLOGY
Research Approach: Research approach is the step based procedure or the plan of the
research which looks at the broad amount of the assumption to detailed method of data
collection, analysis and interpretation. Research methodology includes outlining the problem at
the starting stage and implying the assumption. Their are two type of the Research methodology
which are generally used by the researcher i.e. Deductive approach and the Inductive approach,
Deductive approach is the approach which looks at creating the hypothesis on the basis of the
theory and after that the strategy will be design to test the already made hypothesis. Deductive
approaches process starts with the Theory than follow up with the Hypothesis, test and end up at
the result confirm or reject (Creswell. and Poth, 2017). Inductive approach of the research does
not start with the hypothesis it generally looks at the Aim and objective of the research project
which needs to be achieved and the theory are applied at the last stage of the approach. This
approach starts with the observation, pattern and then ends at the Theory. The current research

will used the Inductive research approach as the research approach tool as it will hep the
researcher in relating the topic of the research comfortably.
Research Philosophy: Research philosophy is a belief about the way in which the data
can be gathered analysed and used. Generally researcher used to used the two type of the
Philosophy in the research i.e. Positivism philosophy and the interpretivism philosophy.
Positivism philosophy is the philosophy in which the researcher used to study the society in
which the researcher used to see the scientific evidence. Interpretivism philosophy used to see
the case study related to the interest of the Human nature. The current report will take the help of
the Interpretivism philosophy to achieve the Aim and objective of the research as the research
also looks at the interest of the 20 respondents toward the answer of the questionnaire which will
be their interest.
Data collection: Data collection is the process or the method which focuses on gathering
and measuring the data, which helps the researcher in testing the hypothesis. There are two main
sources of the data collection. The first one is the primary source in which the data is collected
from the source of the origin itself and the data which is collected is of a fresh nature. For e.g.
The data collected from the survey or the questionnaire is known as a primary source. To collect
the data survey monkey tool was used in which the question was filled and send to the
respondent directly on their male. The secondary source is the source in which the data is
collected from the other resource who have already collected the data. For e.g. Data collected
from the books, magazines (Saunders and et.al., 2015). For studding the role of the franchises'
researcher will use the both the source as the primary data was collected with the help of the
survey and the questionnaire and the secondary data was supported by the literature review.
Data Analysis: Data Analysis is the process in which the collected data is evaluated to
find out the required information. Data Analysis generally follows the process of collection,
transformation, cleaning and in the end the modelling the data. Their are two different way
through which the data can be analysed. The first way in the qualitative analysis in which only
non numeric data are analysed by the researcher with the help of applying the different theory
and the model. The second method is the Quantitative analysis in which the researcher used to
analysed and observed the numeric data (Thuries and Gillet, 2016). This report will take the help
of or will use the Qualitative approach to analysis the data for understanding the challenges and
the concept of the franchises.

Sampling: Sampling generally known as a selected group of the people which are taken
by the research to collect the primary data. Researcher generally uses the two type of the
sampling i.e. probability research sampling in which the researcher used to select the larger
number of the population as a sampling for the research. Non probability is the second type in
which the researcher used to select the fixed number of the responded for gathering the data
(Mihas, 2019). This research report of the Burger king will be using the Simple random sampling
in which the research will be taking the 20 manager as a respondents to gather the primary data
of the research.
Ethical: Research ethics are the principle or the moral which the individual has to follow
for conducting the research. This report also follows the different ethics of the research as the
Questionnaire which has been framed is framed on the basis of the non busyness. Responded
also were not influenced or force to change the opinion of them, they were independent to
answer the survey by their own. The research which is conducted by looking at all the principle
of the research.
PROPOSED TIME SCALE

QUESTIONNAIRE
Name:
1. What do you consider to be key benefits for using franchising to enter Bulgaria ?
 Requirement of fewer employee's
 Growth and development
 Limited risk.
2. Is franchising is the best market entry strategy to enter the Bulgaria market?
 Strongly Agree
 Agree
 Strongly Disagree
 Disagree
3. What is the other best way through which the organization can enter into the new market?
 Merger
 Acquisition
 Joint Venture
 Licensing
4. What are the main issue which are faced in the franchising System?
 Capital
 Infrastructure
 Finding right Human Resources
5. According to you what are major disadvantage of adopting franchising strategy ?
 Cost may be higher
 Franchisor may go out of the business.
 Difficulty in selling the franchise
 All the above
6. Is the culture of the host country affects the decision of selecting the Franchising?
 Yes
 No

 May be
7. What are the factor which influence the organization to used the franchise system to expand?
 Competitive advantage
 Goodwill of the franchising company
 Need in the local market
8. What are the internal issue which are face by the organization at the time of adopting
franchising system?
 Employee Support
 Stakeholder Support
 Technology
9. What are the best way to overcome the problem of the Franchising System?
 Understanding the New Technology
 Developing Human resource
 Restructure of the organization
10. Recommended the ways through which the burger king can overcome the problem?
DATA ANALYSIS
Theme 1: Knowledge about the process of Franchise
1. What do you consider to be key benefits for using franchising to enter Bulgaria ? Frequency
Requirement of fewer employee's 17
Growth and development 2
Limited risk 1

Interpretation:
As the above data shows that out of the total pool of the 20 respondents there are 17
respondents who stated that franchising strategy requires less number of people. Further, there
are 2 respondents who said that growth and development is the major benefit to the company.
Remaining 1 employee said that limited risk is the major advantage of entering into franchising
agreement.
Theme 2: Validity of the Franchising System
2. Is franchising is the best market entry strategy to enter in the Bulgaria market? Frequency
Strongly Agree 9
Agree 4
Strongly Disagree 5
Disagree 2
17
2
1
Requirement of fewer
employee's
Growth and development
Limited risk

Strongly Agree Agree Strongly Disagree Disagree
0
1
2
3
4
5
6
7
8
9
10
Frequency
Interpretation:
It has been observed that out of the total pool of the 20 respondents more than half of them are in
favour of the Franchising system as the best system to enter into the new market, which shows
that the Burger king is doing great in choosing the Franchising as a strategy to enter into the new
market. At the same time 7 out of the 20 respondents are against it which is a big number as one
third of the respondents are not in the favour of it so the company should look at the other
strategy also.
Theme 3: Alternative of the Franchising system
3. What is the other best way through which the organization can enter into the
new market? Frequency
Merger 13
Acquisition 2
Joint Venture 4
Licensing 1

13
2
4
1
Merger
Acquisition
Joint Venture
Licensing
Interpretation:
It has been interpreted from the above data that the merger is another very good new market
entering strategy which can be used by the Burger king as 65 percent of the respondents are in
favour of the merger as the good strategy to enter into the new market. From the pool of the 20
respondents 4 are in favour of the Joint venture, 2 are in favour of the Acquisition and only one
respondent is in the favour of the Licensing.
Theme 4: Issue faced in Franchising system

4. What are the main issue which are faced in the franchising System? Frequency
Capital 12
Infrastructure 2
Finding right Human Resources 6
Capital
Infrastructure
Finding right Human Resources
0 2 4 6 8 10 12 14
Frequency
Interpretation:
As the above data shows that out of the total pool of the 20 respondents 12 are having the
opinion that the capital is the big issue which are faced in the process of the franchise. 6
respondents are having the opinion that finding the right employee is the big issue to carry out
the activity of the business is the big issue. So it can be interpreted from the data that the big
issue which is faced by the Burger king in the Franchise system is to find out the best employees
to carry the business and also to it get difficult for the company to raise the capital for the
franchises.
Theme 5:
5) According to you what are major disadvantage of adopting franchising
strategy ? Frequency
Cost may be higher 10
Franchisor may go out of the business 5

Difficulty in selling franchise 3
All the above 2
Interpretation:
From the above chart it has been concluded that out of 20 respondents there are 10 people
that said cost of adopting franchising strategy is higher. 2 respondents mentioned that all the
factors are disadvantages of franchising strategy. Another 3 respondents said that the firm may
find difficulty in selling the business and remaining 5 respondents said that franchisor may go
out of the business of franchisee.
10
5
3
2
Cost may be higher
Franchisor may go out of the
business
Difficulty in selling franchise
All the above

Theme 6: Host country culture impact on the Decision of Franchising
6. Is the culture of the host country affects the decision of selecting the
Franchising? Frequency
Yes 15
No 4
May be 1
15
4
1
Yes
No
May be
Interpretation:
After going through the above data it can be observed that the culture is the big factor which is
seen by the organization to before going for the Franchise system as out of the total pool of the
20 respondents 15 are in favour of it as it is the 75 percent of the total respondents it can be said
that the culture of the host country is the big factor in influencing the decision of the Franchising.
Theme 7: Factor influencing organization to use the franchise system
7. What are the factor which influence the organization to used the franchise
system ? Frequency
Competitive advantage 2
Goodwill of the franchising company 13

Need in the local market 5
2
13
5
Competitive advantage
Goodwill of the franchising
company
Need in the local market
Interpretation:
After going through above data it can be summarized that the goodwill of the franchise company
is the big factor which influence the host company to go for the franchise company as more than
half of the respondents was of the same opinion. Out of 20 respondents 5 respondents were
having the thoughts that the need of the people in the local market influence the company to go
for franchise system and the 2 were having the opinion that the competitive advantage force the
company to have a franchise system.

Theme 8: Internal issue faced at the time of the Franchising system
8. What are the internal issue which are face by the organization at the time of
adopting franchising system? Frequency
Employee Support 7
Stakeholder Support 6
Technology 7
7
6
7
Employee Support
Stakeholder Support
Technology
Interpretation:
After going through the above data it can be interpreted that the internal issue which is faced by
the company is not one. Their are many internal issue which is faced by the company as the
result of the survey shows that there is no one sided opinion of the respondents in this question as
all the option was almost equally chosen by the respondents. As out of the total pool of the 20
respondents 7 has chosen the employee support. Same number of the respondents has chosen the
technology and 6 respondent has chosen the Stakeholder support.

Theme 9: Way to overcome the Franchising System
9. What are the best way to overcome the problem of the Franchising System? Frequency
Understanding the New Technology 9
Developing Human resource 8
Restructure of the organization 3
Understanding the New Technology
Developing Human resource
Restructure of the organization
0
1
2
3
4
5
6
7
8
9
10
Frequency
Interpretation:
From the above data it can be interpreted that out of the total pool of the 20 respondents 9
respondents are in favour of understanding the new technology and 8 are in favour of
Developing the Human resource for the purpose of the Franchising system. So it can be said that
these are two factor which need to be see by the company to overcome the franchising issues.
Only 3 respondents are in favour of the Restructure of the organization management.
Theme 10: Ways through which the burger king can overcome the problem
Interpretation:
From the recommendation of the respondents it can be interpreted that the more than 50 percent
of the respondent are in favour that the Burger king should lay down the fee of providing the
franchise as it is increase the cost of the host company and to recover that the company is
compromising on the quality of the product.

Findings -
It has been found from the data analysis section that majority of the respondents are in
favour that by franchising is the best method for entering into a foreign country. As out of the
total respondent 85 percent of the respondent has choose the same option. The reason behind the
same is majority of operations are handled by the franchisee or the other company in the merger.
This is well-supported by the Literature review section as Welsh and Alon (2015) also explains
that franchising is less risky option and merger option used to help the company in getting the
support from the other domestic company.
Further, data analysis section also reflect that when company adopted franchising as a
foreign entry method then it faces issues of high cost. Such that majority of the respondents are
favour of this statement. Even this is also supported by the literature section in which Sonwalkar,
J. and Soni (2015) stated that when company adopting new entry modes, it must be well aware
with the challenges which it may face in the future.
It has been further found out that when company enter into new market the culture of host
country is affected the overall decision. It is well-supported by the literature review section as
Bai, McColl and Moore (2017) highlights that every country have their own culture and when
company start operating in new country then it will definitely faces issue that pertaining to
culture.
Overall, it is reflected from the section that adopting franchising as a new market entry
mode will help the firm to establish its unit in another country and though it may be faces many
challenges such that cost of the company and company should also consider that company which
already have brand image at the time of using franchising as an market entry mode. Moreover,
during expansion, company also faces issue related to employee support and technology
advancement and it must be sort out by hiring experts and explaining the importance of
expansion. Therefore, it is clear that adopting the franchising as an market entry mode will help
the firm to raise the brand image and also attain the define aim and objectives.
RESEARCH LIMITATION AND EVALUATION
Research limitation is the way in which the effectiveness of the report is defined in the research.
 Further, there are various limitations of using secondary data for writing literature
review is that the data is not primarily collected by researcher himself. Therefore, the
data may be out of date or inaccurate.

 As we have used the probabilistic sampling technique there were a chances of quality of
the data as it does not specify any specialist respondent in it.
 The biggest issue which was faced with the questionnaire was that it was getting
difficult for us to select the question which need to be answered in the questionnaire.
 The other big limitation was the selection of the responded for collecting the primary
data for the evaluation in the research as there were many respondent in front of us to
chose. We have chosen 20 as it is enough size to interoperate.
 The above limitation has affected our performance as we have to discuss the limitation
with the other in the team and senior which used to consume the time of our in preparing
the research.
 We were having the option to have a discussion with the student who have already made
the research. We would used the same if any problem arises in the future research.
 After going through the research it can be said that the researcher can also conduct the
research on the merger option as this was the market expansion option which was
chosen by 13 respondent from the pool of 20.
REFLECTION
Reflection refers to the response of the individual towards a particular stimulus.
Reflection is written by the person to describe own thoughts, feelings, experience and past
situation. It is a process of writing personal experience to understand it in more depth. It helps in
purposeful learning whether it is a project, a success, a meeting or any type of internal or
external experience (Antwi, S.K. and Hamza, 2015). Reflection helps to evaluate the quality of
action or the quality of an individual. Writing a reflection helps to determine self achievements,
challenges faced etc.
Throughout the process of conducting research study, I have learn new concepts, new
things at various stages such as writing literature review, selecting the method of data collection,
data analysis etc. I have learned the importance of completing every activity related with the
study on time. Before starting to conduct the study I was quite nervous also because, it was my
first research project. But, I was also excited because, the study will help me in developing my
future career. The research has also provided me an opportunity to communicate with other
people for collecting data to achieve the aim and objectives of the study. Therefore, it has
supported me to develop various types of skills such as communication skills, interpersonal

skills, writing skills etc. I have also faced various problems during the stage of data collection,
preparing questionnaire etc. This study has provided me an opportunity to show my existing
skills and also to develop new skills and competencies.
Moreover, the study on challenges that Burger King has faced while using franchising as
a market entry strategy has help me to improve my level of confidence for conducting similar
studies in the future. It has increase my knowledge regarding the ways in which company can
overcome the challenges it has been facing in conducting business in Bulgaria through
franchisee. Such as company should provide proper training to the employees, it should focus on
developing effective pricing strategies, marketing campaigns to attract large number of people
that are living in Bulgaria towards the products of the firm. It also helps to develop my mindset
regarding franchising strategy that firms can use to expand their business. I have faced various
challenges during different stages of research study but, I have overcome those barriers with full
determination and high level of commitment towards the research. Further, it helps me to gain
knowledge of different types of research philosophies such as interpretivism, positivism,
pragmatism, realism etc. Further, it also helps me to understand the importance of following the
ethics by the researcher while conducting the research. It is very important to obtain the consent
of participants while collecting data.
The entire journey of the study was very fruitful for me not only on professional level but on
personal level as well. As, it helps me a lot to improve my writing skills, skills of making graphs
and writing interpretation etc. Moreover, it has helped me to improve my interpersonal skills by
communicating with other people. Further, the support of my tutor also helps me to conduct the
research in effective manner.
RECOMMENDATION
 As with the help of research it has been found that there are various benefits related to
franchising which organization can use in order to enter new market. The franchising can
prove as a efficient way as it consist of low risk and it accounts for low start-up cost.
 Further, there are various limitations of using secondary data for writing literature review
is that the data is not primarily collected by researcher himself. Therefore, the data may
be out of date or inaccurate. Bulgaria market was found to be merger. Merger is also a
good strategy which company can use in order to enter the market. The reason behind this

is that it will help company to access new talent and enter the new market by investing
low cost.
 The other issue which has been found in the franchising is huge capital requirement. This
is the common problem which company face while using franchising as it market entry
strategy. It has also been analysed that franchising creates a huge demand for capital in a
company therefore Burger King should first ensure to have sufficient amount of capital to
use franchising as its market entry strategies.
 The culture of host country also plays a major role in decision making therefore in order
to overcome the barrier which arises due to culture the company should first
appropriately analyse the culture of the new market and than should shape product as
well as product strategy accordingly.
 There are various internal issues which can affect the franchise system. The two major
issues which has been identified in the research is employee support and technology.
Therefore Burger King should ensure to recruit right people in the organisation. The
company should try to ensure that the people recruited should be right for the
organisation and should be able to cope up with the challenges which the company might
face while using franchising as its market entry strategy.
 The company should try to gain adequate knowledge such as governmental rules and
regulation about a market in which company wants to enter.
 As the approval process takes time therefore Burger King should take the advice from
other franchisor in the market.
 The best way which has been found in order to overcome this challenge is understanding
the use of new technology. As the technology is changing rapidly therefore it become
necessary for the company to keep updated about the latest trend in the technology so that
proper action can be taken against it.
CONCLUSION
The aim of the research is to find challenges which Burger King face while using
franchising as it market strategy to enter market of Bulgaria has been successfully analysed. The
study has aimed at providing the views of managers on franchising as well as it also focuses on
analysing that whether franchising is good policy or not. The other major issues which study has
focused is internal factors which can affect franchising system and the ways which can be used

in order to overcome problem faced by franchising system. The questionnaire which has been
prepared as however proved beneficial as it help in understanding the various aspects of
franchising system from managers point of view. The various literature reviews which has been
analysed during the research has helped in gaining the knowledge about a franchising as a
market entry strategy. The research has however helped to understand the concept of franchising.
The study has been proved successful to quite extent as the research has analysed many
challenges which company can face due to franchising from the view point of managers of
Burger King.

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