Hostel Franchising: a Pathway to Expansion
Title: Hostel Franchising: a Pathway to Expansion
Assignment topic
Franchisors are innovative and entrepreneurial. Businesses wishing to profitably and successfully grow need to understand that franchising enable firms to expand more quickly and into more markets than they could otherwise manage.
Word count: 2724 words.
Executive summary
Creating a franchise starts with the customer. The franchisor needs to identify potential customers and produce a business format which will meet their needs and create wealth for both the franchisor and the franchisee. This paper proposes a strategic planning for a franchise system of a hostel. First, it provides a brief description of the latter. Then, it analyses the major factors that the hostel shall consider when embarking in franchising. This is followed by crafting a franchise system strategy with respect to some aspects of the franchisor-franchisee relationship. Finally, the paper gives clear arguments into a final position to extern why franchising is appropriate and relevant for the hostel to create wealth.
Table of contents
1. Introduction……………………………………………………………………..…...…3
2. The hostel…...………………………………………………………………….............3
3. Franchising: major factors of consideration…………………………..…………..……5
4. Deployment strategies ………………………………...……………………………….6 4.1 Real estate issues …………………………………………………………...…..6 4.2 Selecting and monitoring franchisees ………...………………………………...7
4.3 Marketing issues …………………………………………..……………………8 4.4 Financial analysis……………………………………………………………….9 4.5 Franchisee-franchisor relationship dynamics………………………………….10
5. Conclusion……………………………………………………………………………11
References………………………………………………………………………………..12
1. Introduction
Franchising is, at its core, an entrepreneurial alliance between two organizations, the franchisor and the franchisee. This alliance can only come into reality when a successful company store has been established, a
Assignment topic
Franchisors are innovative and entrepreneurial. Businesses wishing to profitably and successfully grow need to understand that franchising enable firms to expand more quickly and into more markets than they could otherwise manage.
Word count: 2724 words.
Executive summary
Creating a franchise starts with the customer. The franchisor needs to identify potential customers and produce a business format which will meet their needs and create wealth for both the franchisor and the franchisee. This paper proposes a strategic planning for a franchise system of a hostel. First, it provides a brief description of the latter. Then, it analyses the major factors that the hostel shall consider when embarking in franchising. This is followed by crafting a franchise system strategy with respect to some aspects of the franchisor-franchisee relationship. Finally, the paper gives clear arguments into a final position to extern why franchising is appropriate and relevant for the hostel to create wealth.
Table of contents
1. Introduction……………………………………………………………………..…...…3
2. The hostel…...………………………………………………………………….............3
3. Franchising: major factors of consideration…………………………..…………..……5
4. Deployment strategies ………………………………...……………………………….6 4.1 Real estate issues …………………………………………………………...…..6 4.2 Selecting and monitoring franchisees ………...………………………………...7
4.3 Marketing issues …………………………………………..……………………8 4.4 Financial analysis……………………………………………………………….9 4.5 Franchisee-franchisor relationship dynamics………………………………….10
5. Conclusion……………………………………………………………………………11
References………………………………………………………………………………..12
1. Introduction
Franchising is, at its core, an entrepreneurial alliance between two organizations, the franchisor and the franchisee. This alliance can only come into reality when a successful company store has been established, a
References: Barber, N & Goodman Jr., R 2011, “A strategic approach to managing customer service quality”, Journal of Service Science, vol. 4, iss. 2, pp. 17-32. Brazilian data, viewed 9 June 2013, . Hill, CWL 2010, Global Business Today, 7th edn, McGraw Hill, Boston. Kotler, P, Keller, KL, Ang, SH, Leong, SM and Tan, CT 2009, Marketing Management: An Asian Perspective, 5th edn, Singapore, Prentice Hall. Rugless, R 2003, “IFA: Communication key ingredient in fruitful franchise relations and Liddle”, Nation’s Restaurant News, February 24, 2003. Spinelli, S, Rosenberg, RM and Birley, S 2004, Franchising: Pathway to Wealth Creation, Prentice Hall, Upper Saddle River, NJ. Thompson, AA, Strickland, AJ and Gamble, JE 2012, Crafting and Executing Strategy: The Quest for Competitive Advantage, Concepts and Cases, 18th edn, New York, McGraw-Hill.