Successfully Franchise Your Businesses †MyAssignmenthelp.com

Questions: 1.Ways to help successfully Franchise Your Businesses internationally? 2. Is Subway following a good entry method for successful international expansion? If yes, provide your comments to support. If No, provide your recommendations in brief to make it more successful? Answers: 1. There has been number of different ways to expand international franchise, among which two methods namely master franchise and regional franchise. Master Franchise This is identified as the simplest method for expanding the franchise overseas. In this particular method the franchisor awards the Master Franchise rights to a particular organization or an individual in the target country. This is seen to be done in return for a significant amount of investment. It has been further seen that the master investment has been able to secure the exclusive rights to develop under the franchisors brand. This is further seen to be applicable in a country like UAE (Ashtons Franchising Consulting, 2017). Regional Franchise In several situations where the master franchise may not work and the entire territory may be segregated into several regions of the target country. In a regional finance the states or the regions are treated as mini Master Franchises. The regional franchisees should cooperate with the national initiatives. This is seen to be implemented with technique such as marketing. In case the area does not support sub-franchising; the practice is further referred to as Area development franchising (Justis et al., 2015). 2. Subway has been able to expand worldwide with its expansion strategy, which has adopted franchising mode of entry into the market. In 1974, the company started its franchising in USA and later on expanded globally. As Subway has a strong brand name it was successful in international expansion. The company was able to first adopt international franchise in 1984 in Bahrain. Beside taking the significant advantage of the know-how of the domestic investors to accelerate the growth in the franchising network. A Subway store is seen to cost much lesser than opening franchises. As per the statement given by Tony Pace, CMO of Subways Franchisee argues that a Subway store costs less to operate and open other chain of restaurants. The significant positive aspect of the Subway following a good entry method for successful international expansion has been further recognized with rapid growth on entry in the new market. The company has opened more than 8,000 outlets in the various types of non-traditional location like showrooms in California. The franchisee has been further able to take higher risk exposure than most of the fast food chains. It has been further seen that Subway has demanded 8% of the gross sales and an additional 4.5% as advertising fee. This amount is seen to be combined with the highest royalty in the food franchise industry. Due to this Subway has been able to generate solid returns from the operating business (Strategy, 2017). The challenge faced by the expansion strategy has been identified in Japan due to the changing needs of the customers. The minimum setup cost has been conducive in overcoming the aforementioned issues (Issuu, 2017). References Global expansion of subway. (2017).issuu. Retrieved 5 August 2017, from https://issuu.com/firstpagecontent/docs/global_expansion_of_subway International Franchising Methods. (2017).Ashtons Franchising Consulting. Retrieved 5 August 2017, from https://www.ashtonsfranchise.com/international-franchising-methods Issuu. (2017).Global expansion of subway. [online] Available at: https://issuu.com/firstpagecontent/docs/global_expansion_of_subway [Accessed 5 Aug. 2017]. Justis, R. T., Chan, P. S., Kedia, B. L. (2015). Pricing Strategies and Fee Structures in Franchising Organizations.Journal of Small Business Strategy,2(1), 25-34. Strategy, E. (2017).GRIN - Evaluation of Franchising as a mode of entry by analyzing Subway's expansion strategy.Grin.com. Retrieved 5 August 2017, from https://www.grin.com/en/e-book/320276/evaluation-of-franchising-as-a-mode-of-entry-by-analyzing-subway-s-expansion