The Growt h of FranchisingFranchisi

The Growt h of Franchising
Franchising, which began in the United States around the time of the Civil War, was
used originally by large firms, such as the Singer Sewing Company, to distribute
their products. Franchising has been increasing steadily in popularity since the early
1900s, primarily for filling stations and car dealerships; however, this retailing strategy
has experienced enormous growth since the mid-1970s. The franchise proliferation
generally has paralleled the expansion of the fast-food industry.
Of course, franchising is not limited to fast foods. Hair salons, tanning parlors, and
dentists and lawyers are expected to participate in franchising arrangements in growing
numbers. Franchised health clubs, pest exterminators, and campgrounds are already
widespread, as are franchised tax preparers and travel agencies. The real estate industry
also has experienced a rapid increase in franchising.
Also, franchising is attracting more women and minority business owners in the
United States than ever before. One reason is that special outreach programs designed
to encourage franchisee diversity have developed. Consider Angela Trammel, a young
mother of two. She had been laid off from her job at the Marriott after 9/11. Since she
was a member of a Curves Fitness Center and liked the concept of empowering women
to become physically fit, she began researching the cost of purchasing a Curves franchise
and ways to finance the business. “I was online looking for financing, and I linked to
Enterprise Development Group in Washington, DC. I knew that they had diverse clients.”
The cost for the franchise was $19,500, but it took $60,000 to open the doors to her
fitness center. “Applying for a loan to start the business was much harder than buying a
house,” said Trammel. Just three years later, Angela and her husband, Ernest, own three
Curves Fitness Centers with 12 employees. Recently, since giving birth to her third child,
she has found the financial freedom and flexibility needed to care for her busy family.
In fact, within a three-year period, the Trammels grew their annual household income
from $80,000 to $250,000.21 Franchisors such as Wendy’s, McDonald’s, Burger King, and
Church’s Chicken all have special corporate programs to attract minority and women
franchisees. Just as important, successful women and minority franchisees are willing to
get involved by offering advice and guidance to new franchisees.
Herman Petty, the first African-American McDonald’s franchisee, remembers that
the company provided a great deal of help while he worked to establish his first
units. In turn, Petty traveled to help other black franchisees, and he invited new
franchisees to gain hands-on experience in his Chicago restaurants
before starting their own establishments. In 1972, Petty also organized
a support group, the National Black McDonald’s Operators
Association, to help black franchisees in other areas. Today, members
of this association own nearly 1,400 McDonald’s restaurants
throughout the United States, South Africa, and the Caribbean with
annual sales of more than $3.2 billion. “We are really concentrating
on helping our operators to be successful both operationally
and financially,” says Craig Welburn, the McDonald’s franchisee
who leads the group.
Dual-branded franchises, in which two franchisors offer their
products together, are a new small-business trend. For example,
in 1993, pleased with the success of its first cobranded restaurant
with Texaco in Beebe, Arkansas, McDonald’s now has more than
400 cobranded restaurants in the United States. Also, an agreement
between franchisors Doctor’s Associates, Inc., and TCBY
Enterprises, Inc., now allows franchisees to sell SUBWAY sandwiches
and TCBY yogurt in the same establishment.
Are Franchises Successful?
Franchising is designed to provide a tested formula for success, along
with ongoing advice and training. The success rate for businesses
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owned and operated by franchisees is significantly higher than the success rate for
other independently owned small businesses. In a recent nationwide Gallup poll of 944
franchise owners, 94 percent of franchisees indicated that they were very or somewhat
successful, only 5 percent believed that they were very unsuccessful or somewhat
unsuccessful, and 1 percent did not know. Despite these impressive statistics, franchising
is not a guarantee of success for either franchisees or franchisors. Too rapid expansion,
inadequate capital or management skills, and a host of other problems can cause failure
for both franchisee and franchisor. Thus, for example, the Dizzy Dean’s Beef and Burger
franchise is no longer in business. Timothy Bates, a Wayne State University economist,
warns, “Despite the hype that franchising is the safest way to go when starting a new
business, the research just doesn’t bear that out.” Just consider Boston Chicken, which
once had more than 1,200 restaurants before declaring bankruptcy in 1998.
Advantages of Franchising
Franchising plays a vital role in our economy and soon may become the dominant
form of retailing. Why? Because franchising offers advantages to both the franchisor
and the franchisee.
To the Franchisor The franchisor gains fast and well-controlled distribution of its
products without incurring the high cost of constructing and operating its own outlets.
The franchisor thus has more capital available to expand production and to use for
advertising. At the same time, it can ensure, through the franchise agreement, that outlets
are maintained and operated according to its own standards.
The franchisor also benefits from the fact that the franchisee—a sole proprietor in
most cases—is likely to be very highly motivated to succeed. The success of the franchise
means more sales, which translate into higher royalties for the franchisor.
To the Franchisee The franchisee gets the opportunity to start a business with limited
capital and to make use of the business experience of others. Moreover, an outlet
with a nationally advertised name, such as RadioShack, McDonald’s, or Century 21,
has guaranteed customers as soon as it opens.
If business problems arise, the franchisor gives the franchisee
guidance and advice. This counseling is primarily responsible for
the very high degree of success enjoyed by franchises. In most cases,
the franchisee does not pay for such help.
The franchisee also receives materials to use in local advertising
and can take part in national promotional campaigns sponsored by
the franchisor. McDonald’s and its franchisees, for example, constitute
one of the nation’s top 20 purchasers of advertising. Finally, the
franchisee may be able to minimize the cost of advertising, supplies,
and various business necessities by purchasing them in cooperation
with other franchisees.
Disadvantages of Franchising
The main disadvantage of franchising affects the franchisee, and
it arises because the franchisor retains a great deal of control. The
franchisor’s contract can dictate every aspect of the business: decor,
design of employee uniforms, types of signs, and all the details of
business operations. All Burger King French fries taste the same
because all Burger King franchisees have to make them the same way.
Contract disputes are the cause of many lawsuits. For example,
Rekha Gabhawala, a Dunkin’ Donuts franchisee in Milwaukee,
alleged that the franchisor was forcing her out of business so that
the company could profit by reselling the downtown franchise
to someone else; the company, on the other hand, alleged that
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Hasil (Bahasa Indonesia) 1:

Growt h dari waralabaWaralaba, yang dimulai di Amerika Serikat selama perang saudara, adalahdigunakan awalnya oleh perusahaan-perusahaan besar, seperti perusahaan jahit penyanyi, untuk mendistribusikanproduk-produk mereka. Waralaba telah meningkat terus popularitas sejak dini1900-an, terutama untuk stasiun pengisian dan dealer mobil; Namun, strategi ini riteltelah mengalami pertumbuhan yang besar sejak pertengahan 1970-an. Proliferasi waralabaumumnya memiliki paralel perluasan industri makanan cepat saji.Tentu saja, waralaba ini tidak terbatas pada makanan cepat. Salon rambut, penyamakan panti, dandokter gigi dan pengacara diharapkan untuk berpartisipasi dalam waralaba pengaturan tumbuhnomor. Klub Kesehatan waralaba, exterminators hama, dan perkemahan yang sudahluas, seperti waralaba preparers pajak dan agen perjalanan. Industri real estatejuga telah mengalami peningkatan pesat dalam waralaba.Juga, waralaba adalah menarik lebih banyak perempuan dan minoritas pemilik bisnis diAmerika Serikat daripada sebelumnya. Salah satu alasan adalah bahwa program penjangkauan yang khusus dirancanguntuk mendorong keragaman franchisee telah mengembangkan. Pertimbangkan Angela Trammel, mudaIbu dari dua. Dia telah dipecat dari pekerjaannya di Marriott setelah 9/11. Sejak diaAnggota Pusat Kebugaran kurva dan menyukai konsep pemberdayaan perempuanuntuk menjadi bugar, dia mulai meneliti biaya pembelian waralaba kurvadan cara-cara untuk membiayai bisnis. "Saya adalah online mencari pembiayaan, dan saya terhubung keEnterprise Development Group di Washington, DC. Aku tahu bahwa mereka memiliki beragam klien."Biaya untuk waralaba adalah $19,500, tapi butuh $60.000 untuk membuka pintu baginyaPusat kebugaran. "Mengajukan permohonan pinjaman untuk memulai bisnis ini jauh lebih sulit daripada membelirumah,"kata mengungkung. Hanya tiga tahun kemudian, Angela dan suaminya, Ernest, memiliki tigaKurva pusat kebugaran dengan 12 karyawan. Baru-baru ini, karena melahirkan anaknya yang ketiga,Dia telah menemukan Keuangan kebebasan dan fleksibilitas yang diperlukan untuk merawat keluarganya yang sibuk.Bahkan, dalam waktu tiga tahun, Trammels tumbuh pendapatan rumah tangga tahunan merekadari $80.000 untuk $250,000.21 Franchisors seperti Wendy, McDonald's, Burger King, danGereja ayam semua memiliki program perusahaan khusus untuk menarik minoritas dan perempuanwaralaba. Sama seperti penting, sukses perempuan dan minoritas waralaba bersedia untukterlibat dengan menawarkan nasihat dan bimbingan untuk waralaba baru.Herman Petty, waralaba McDonald Afrika-Amerika pertama, ingat bahwaperusahaan menyediakan banyak bantuan sementara ia bekerja untuk membangun pertamaunit. Pada gilirannya, Petty bepergian untuk membantu waralaba hitam lain, dan ia mengundang baruwaralaba untuk memperoleh pengalaman di restoran Chicagosebelum memulai perusahaan mereka sendiri. Pada tahun 1972, Petty juga diselenggarakandukungan kelompok, operator Nasional Black McDonald'sAsosiasi, untuk membantu hitam waralaba di daerah lain. Hari ini, anggotaAsosiasi ini memiliki restoran hampir 1.400 McDonald'sseluruh Amerika Serikat, Afrika Selatan, dan Karibiapenjualan tahunan lebih dari $3.2 milyar. "Kami benar-benar berkonsentrasimembantu operator kami akan berhasil baik operasionaldan finansial,"kata Craig Welburn, waralaba McDonald'syang memimpin kelompok.Dual-merek waralaba, di mana dua franchisors menawarkan merekaProduk bersama-sama, adalah tren bisnis kecil baru. Sebagai contoh,pada tahun 1993, senang dengan keberhasilan pertama Restoran cobrandeddengan Texaco di Beebe, Arkansas, McDonald's sekarang memiliki lebih dariRestoran cobranded 400 di Amerika Serikat. Selain itu, perjanjianantara dokter franchisors Associates, Inc, dan TCBYEnterprises, Inc, sekarang memungkinkan waralaba menjual SUBWAY sandwichdan TCBY yoghurt dalam pembentukan sama.Apakah waralaba sukses?Waralaba dirancang untuk memberikan rumus diuji untuk sukses, sepanjangdengan terus-menerus saran dan pelatihan. Tingkat keberhasilan untuk bisnis153dimiliki dan dioperasikan oleh waralaba secara signifikan lebih tinggi daripada tingkat keberhasilan untukusaha kecil lain yang dimiliki secara independen. Dalam sebuah Nasional Gallup poll terakhir dari 944pemilik waralaba, 94 persen waralaba menunjukkan bahwa mereka sangat atau agaksukses, hanya 5 persen percaya bahwa mereka sangat berhasil atau agakgagal, dan 1 persen tidak tahu. Meskipun statistik ini mengesankan, waralabaini tidak merupakan jaminan kesuksesan untuk waralaba atau franchisors. Terlalu cepat ekspansi,modal memadai atau keterampilan manajemen, dan sejumlah masalah lain dapat menyebabkan kegagalanuntuk franchisee maupun franchisor. Jadi, untuk contoh, Dizzy Dean daging sapi dan Burgerwaralaba ini tidak lagi dalam bisnis. Timothy Bates, seorang ekonom Wayne State University,memperingatkan, "meskipun hype itu waralaba adalah cara paling aman untuk pergi ketika mulai baruBisnis, penelitian tidak beruang yang." Hanya mempertimbangkan ayam Boston, yangpernah lebih dari 1.200 restoran sebelum mengumumkan kebangkrutan pada tahun 1998.Keuntungan dari waralabaWaralaba memainkan peran penting dalam perekonomian kita dan segera mungkin menjadi dominanbentuk ritel. Mengapa? Karena waralaba menawarkan keuntungan untuk kedua Diperolehdan franchisee.Untuk diperoleh diperoleh keuntungan cepat dan baik dikontrol distribusi yangProduk tanpa menimbulkan biaya tinggi membangun dan operasi outlet sendiri.Diperoleh dengan demikian memiliki lebih banyak modal untuk memperluas produksi dan digunakan untukiklan. Pada saat yang sama, itu dapat memastikan, melalui perjanjian waralaba, outlet yangdipelihara dan dioperasikan sesuai standar sendiri.Diperoleh juga manfaat dari fakta bahwa franchisee — satu-satunya pemilik dikebanyakan kasus — cenderung sangat sangat termotivasi untuk berhasil. Keberhasilan waralababerarti lebih banyak penjualan, yang diterjemahkan ke dalam lebih tinggi royalti untuk diperoleh.Kepada Franchisee franchisee mendapat kesempatan untuk memulai bisnis dengan limitedmodal dan untuk membuat penggunaan pengalaman bisnis orang lain. Selain itu, outletdengan nama diiklankan secara nasional, seperti RadioShack, McDonald's atau 21 abad,telah menjamin pelanggan segera akan terbuka.Jika timbul masalah bisnis, memberikan franchisor franchiseebimbingan dan nasihat. Konseling ini terutama bertanggung jawab untuksangat tinggi tingkat keberhasilan yang dinikmati oleh waralaba. Dalam kebanyakan kasus,franchisee tidak membayar untuk itu.Franchisee juga menerima bahan-bahan untuk digunakan dalam periklanan lokaldan dapat mengambil bagian dalam Nasional kampanye promosi yang disponsori olehDiperoleh. McDonald's dan para pewaralaba, misalnya, merupakansalah satu pembeli top 20 negara dari iklan. Akhirnya,franchisee mungkin mampu meminimalkan biaya iklan, persediaan,dan berbagai kebutuhan bisnis dengan membeli mereka dalam kerjasamadengan waralaba lain.Kerugian dari waralabaKelemahan utama dari waralaba mempengaruhi franchisee, danitu muncul karena diperoleh mempertahankan banyak kontrol. Thefranchisor kontrak dapat mendikte setiap aspek bisnis: dekorasi,Desain seragam karyawan, jenis tanda-tanda dan semua rincianoperasi bisnis. Semua Burger King kentang goreng rasa yang samabecause all Burger King franchisees have to make them the same way.Contract disputes are the cause of many lawsuits. For example,Rekha Gabhawala, a Dunkin’ Donuts franchisee in Milwaukee,alleged that the franchisor was forcing her out of business so thatthe company could profit by reselling the downtown franchiseto someone else; the company, on the other hand, alleged that154