The Challenges of Franchising for Burger King in Bulgaria

This research proposal investigates the challenges Burger King faces when utilizing franchising as a market entry strategy in Bulgaria. The report begins with an executive summary and table of contents, followed by an introduction outlining the study's importance, aims, and objectives. A comprehensive literature review explores the concept of franchising, its advantages and disadvantages, and its application as a market entry strategy. The research methodology details the tools used, including a questionnaire for primary data collection, and the analysis of the collected data. The study identifies key challenges such as cultural and language barriers, and offers recommendations to overcome these obstacles. The report concludes with a discussion of research limitations, reflections, and suggestions for future research, providing valuable insights into Burger King's franchising endeavors 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 this report 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.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
IMPORTANCE OF THE STUDY..................................................................................................4
MAIN BODY...................................................................................................................................4
LITERATURE REVIEW................................................................................................................4
SUMMARY OF LITERATURE REVIEW.....................................................................................7
RESEARCH METHODOLOGY.....................................................................................................7
PROPOSED TIME SCALE.............................................................................................................9
DATA ANALYSIS........................................................................................................................11
RESEARCH LIMITATION AND EVALUATION.....................................................................20
REFLECTION ..............................................................................................................................20
RECOMMENDATION.................................................................................................................21
CONCLUSION..............................................................................................................................22
REFERENCES..............................................................................................................................23

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
highlights the Literature review of the research and also shows the summary of the literature
review. Further this report highlights the Research methodology which shows the different tools
are used in conducting the research. Further this report highlights the Questionnaire for the
primary data collection and the result of the Survey. In the end the report highlights the Research
limitation, reflection and the recommendation for the Burger King.
IMPORTANCE OF THE STUDY
Aims : To identify the challenges faced by using franchising as market entry strategy by Burger
King in entering in Sri lanka
Objectives :
 To determine the concept of franchising
 To identify the challenges which is faced by Burger king by using franchising as its
market entry strategy to enter Sri Lanka
 To recommend ways in order 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.
MAIN BODY
LITERATURE REVIEW
Theme 1 : The concept of franchising as a market entry strategy.

According to Bai, McColl and Moore (2017) 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 as well as disadvantages. One of
the major advantage is that, company does not require to invest 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, J. 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
Bulgarians, there are various franchise firms that have entered in the market such as Burger
King. Numerous fast food franchises started operating their business in major cities of Bulgaria.
Burger King is operating its operations in almost every country of Europe. the company has
started first restaurant in Central London in yearResearch limitation is the way in which the
effectiveness of the report is defined in the research.
 The main limitation of the research is that the selection of the source of the secondary
data collection for the research.
 The main limitation of research is aims and objectives could be narrowed so that the
level of focus of the study.
 At the time of data collection researcher take care of participants they do not done any
misbehaving and force on participants.

 The other big limitation was the selection of the responded for collecting the primary
data for the evaluation in the research. Research limitation is the way in which the
effectiveness of the report is defined in the research.
 The main limitation of the research is that the selection of the source of the secondary
data collection for the research.
 The main limitation of research is aims and objectives could be narrowed so that the
level of focus of the study.
 At the time of data collection researcher take care of participants they do not done any
misbehaving and force on participants.
 The other big limitation was the selection of the responded for collecting the primary
data for the evaluation in the research.
 Other limitation of the research was that the finding out the way through which
researcher can carry out the report next time also with the different aspect.
Other limitation of the research was that the finding out the way through which researcher can
carry out the report next time also with the different aspect. 1977. Payne, (2017) suggested that,
Polish group AmRest is one of the company that has entered into an agreement with the firm to
start new restaurant in Bulgaria, Romania etc. ThisResearch limitation is the way in which the
effectiveness of the report is defined in the research.
 The main limitation of the research is that the selection of the source of the secondary
data collection for the research.
 The main limitation of research is aims and objectives could be narrowed so that the
level of focus of the study.
 At the time of data collection researcher take care of participants they do not done any
misbehaving and force on participants.
 The other big limitation was the selection of the responded for collecting the primary
data for the evaluation in the research.
Other limitation of the research was that the finding out the way through which researcher can
carry out the report next time also with the different aspect. has help the company to expand its
business in Europe. Further, it also supported Burger King to increase its revenue with the help
Research limitation is the way in which the effectiveness of the report is defined in the research.

 The main limitation of the research is that the selection of the source of the secondary
data collection for the research.
 The main limitation of research is aims and objectives could be narrowed so that the
level of focus of the study.
 At the time of data collection researcher take care of participants they do not done any
misbehaving and force on participants.
 The other big limitation was the selection Research limitation is the way in which the
effectiveness of the report is defined in the research.
 The main limitation of the research is that the selection of the source of the secondary
data collection for the research.
 The main limitation of research is aims and objectives could be narrowed so that the
level of focus of the study.
 At the time of data collection researcher take care of participants they do not done any
misbehaving and force on participants.
 The other big limitation was the selection of the responded for collecting the primary
data for the evaluation in the research.
 Other limitation of the research was that the finding out the way through which
researcher can carry out the report next time also with the different aspect.of the
responded for collecting the primary data for the evaluation in the research.
Other limitation of the research was that the finding out the way through which researcher can
carry out the report next time also with the different aspect.of marketing skills and expertise of
franchisee. Currently, Burger King is operating one restaurant in Bulgaria.
Theme 2 : The challenges faced by Burger King for 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. Burger
King also faced various challenges while starting restaurants in Bulgaria 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 Burger King
has experienced during setting up franchising in Bulgaria is language that people living in
country speaks. As per the Article on key trends affecting the business of Burger King,
employees that are working in franchisee that is haResearch limitation is the way in which the
effectiveness of the report is defined in the research.
 The main limitation of the research is that the selection of the source of the secondary
data collection for the research.
 The main limitation of research is aims and objectives could be narrowed so that the
level of focus of the study.
 At the time of data collection researcher take care of participants they do not done any
misbehaving and force on participants.
 The other big limitation was the selection of the responded for collecting the primary
data for the evaluation in the research.
Other limitation of the research was that the finding out the way through which researcher can
carry out the report next time also with the different aspect.ving agreement with Burger King
must have knowledge of language of the country that is Bulgarian. Therefore, language barrier
may negatively affect the profitability and expansion strategy of the firm. Further, another major
challenge Burger King has faced during franchising business in the country is Culture of the
country.
Generally, people of Bulgaria 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, company faced major challenge in developing pricing strategies to attract Bulgarians
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 also. The impact of Brexit on franchisors also depends
upon the relationship of countries with European Union. Firms also require to comply various
regulations of Bulgaria (Alpeza, Erceg, A. and Oberman Peterka, 2015).
Theme 3 : Recommendations for overcoming the challenges faced by Burger King in
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 Burger King has
faced while entering in the market of Bulgaria. Company should firstly conduct proper research
of the market. This will help the firm to determine the type of culture people living in Bulgaria
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 Bulgarian language. 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, Burger King should focus on
understanding all the rules and regulations that are applicable on franchising business. So that,
non-compliance of the policies of Government in Bulgaria 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 Burger King. 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 Research limitation is the way in which the
effectiveness of the report is defined in the research.
 The main limitation of the research is that the selection of the source of the secondary
data collection for the research.
 The main limitation of research is aims and objectives could be narrowed so that the
level of focus of the study.
 At the time of data collection researcher take care of participants they do not done any
misbehaving and force on participants.
 The other big limitation was the selection of the responded for collecting the primary
data for the evaluation in the research.
Other limitation of the research was that the finding out the way through which researcher can
carry out the report next time also with the different aspect.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 the process or the method which focuses on gathering and
measuring the data, which helps the researcher in testing the hypothesis. Their are two main
source 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. 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 used 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 reseaResearch limitation is the way in which the
effectiveness of the report is defined in the research.
 The main limitation of the research is that the selection of the source of the secondary
data collection for the research.
 The main limitation of research is aims and objectives could be narrowed so that the
level of focus of the study.
 At the time of data collection researcher take care of participants they do not done any
misbehaving and force on participants.
 The other big limitation was the selection of the responded for collecting the primary
data for the evaluation in the research.
Other limitation of the research was that the finding out the way through which researcher can
carry out the report next time also with the different aspect.rcher 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 Research limitation is the way in which the
effectiveness of the report is defined in the research.
 The main limitation of the research is that the selection of the source of the secondary
data collection for the research.
 The main limitation of research is aims and objectives could be narrowed so that the
level of focus of the study.
 At the time of data collection researcher take care of participants they do not done any
misbehaving and force on participants.
 The other big limitation was the selection of the responded for collecting the primary
data for the evaluation in the research.
Other limitation of the research was that the finding out the way through which researcher can
carry out the report next time also with the different aspect.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