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Restaurant Organizations: Chain, Independent or Franchise? - PowerPoint PPT Presentation


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Restaurant Organizations: Chain, Independent or Franchise?. Chapter Five. Forms of Restaurant Ownership. Chain Independent Franchise. Chain Strengths. Marketing and brand recognition Site selection expertise Access to capital Purchasing (economies of scale)

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Presentation Transcript
forms of restaurant ownership
Forms of Restaurant Ownership
  • Chain
  • Independent
  • Franchise
chain strengths
Chain Strengths
  • Marketing and brand recognition
  • Site selection expertise
  • Access to capital
  • Purchasing (economies of scale)
  • Centrally administered control and information systems
  • Personnel program development
two kinds of franchising
Two Kinds of Franchising
  • Product/Trade name franchising:Confers the right to use a brand name and to sell a particular product
  • Business Format franchising:Includes the use of product, service, and other systems and standards associated with the business
common characteristics of a franchise agreement
The duration of the agreement

Fee and payment structure

Responsibilities of both parties

Permitted use of symbols

Operating procedures

Confidentiality

Advertising and Promotion

Financial accounting and maintenance of records

Training

Insurance

Products and services which will be purchased by franchisee

Transferability and renewals

Common Characteristics of a Franchise Agreement
services provided to franchisees
Services Provided to Franchisees

Initial Services:

  • Overall concept/design planning
  • Franchisee screening
  • Site selection and planning
  • Pre-opening training
  • Operations manuals
  • Employee handbooks
services provided to franchises
Continuing Services

Operating and control procedures

Information management

Quality control

Training

Field support

Purchasing

Marketing

Advertising

New products

New concepts

Services Provided to Franchises