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National Diploma in Business L6 Business Culture and Environment Unit 6412 Marketing (V1) (10 CREDITS)

National Diploma Level 5 and Level 6

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Himanshu Gulia
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0% found this document useful (0 votes)
32 views22 pages

National Diploma in Business L6 Business Culture and Environment Unit 6412 Marketing (V1) (10 CREDITS)

National Diploma Level 5 and Level 6

Uploaded by

Himanshu Gulia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 22

1

NATIONAL DIPLOMA IN BUSINESS L6

Business Culture and Environment


Unit 6412 Marketing
(V1) (10 CREDITS)

Assignment Submitted Date 22/08/2014


Assignment Submitted to David Lemon
Assignment Submitted by Dapinder Singh

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Table of Contents

Part A.......................................................................................................................................................4
Key Features of Franchise.......................................................................................................................4
Types of Franchise...............................................................................................................................4
Concept of Franchise...........................................................................................................................5
Franchise Type.....................................................................................................................................6
Business Idea.......................................................................................................................................6
Cost Structure......................................................................................................................................7
Responsibilities of Franchiser..............................................................................................................8
Responsibilities of Franchises.............................................................................................................9
Part B.....................................................................................................................................................10
2.0 Key Features of Franchises..............................................................................................................10
2.1 Positive Image..............................................................................................................................10
2.2 Principles of Franchise.................................................................................................................10
2.3 Products...................................................................................................................................10
2.4 Outlets......................................................................................................................................10
2.5 Establishing Franchise Outlets.................................................................................................10
2.6 Franchiser Projections..............................................................................................................10
2.7 Competitors performance........................................................................................................10
2.8 Benefits from Franchiser.............................................................................................................10
2.9 Background..................................................................................................................................11
2.10 Business Plan.............................................................................................................................11
2.11 Operations Manuals...................................................................................................................11
2.12 Marketing Support.....................................................................................................................11
2.13 Communication..........................................................................................................................12
2.14 Location.....................................................................................................................................12
Part C.....................................................................................................................................................13
3.0 Evaluate of Franchise Proposal for your Chosen Franchise............................................................13
3.1 Attractiveness and Viability.........................................................................................................13
3.2 Investment Viability....................................................................................................................15
3.3 Resource Viability.......................................................................................................................16

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3.4 Business Information and Statistic..............................................................................................17


3.5 Business Information Statistic.....................................................................................................18

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Part A

Key Features of Franchise

1.1 Types of Franchise

Single product or service

Franchises those are producing only one product like Nissan vehicle is that type of franchises
in which offered as a single unit franchise. This franchise also buys the rights to own and
operate on a single franchise location. There are number of entrepreneurs who invest in a
franchise as according to business format franchisee

Manufacturing and Wholesale

Franchisor supplies raw materials and or specialized knowledge to a franchisee who


manufactures and wholesale distributes the finished product.

Manufacturing and retail

Distributor acts as an outlet for their products of a manufacturer. The distributors sell the
product and services and hold exclusive right to provide products within a specific territory or
end users.

Wholesale and retail

Wholesale price is the price a retail establishment pays for a product. Retail price is the price
at which they sell that same item to the public. The difference between the two prices is
called retail mark-up. Mark-up is the profit of a retailer and that is what a retailer gets against
the service they provide by offering the consumer the product.

Retail product

Retailer purchase products from the manufacturer and buys those products in whole sales and
sells those in smaller quantities to the customers. There are different kinds of retail products
those can be categories as food retail products, milk retail products, IT retail products etc.

Retail services

Retail Services is the sale of goods and services from businesses to the user. Retailers are part
of a system that is called the supply chain. A retailer purchases goods or product from
manufacturers directly or through a wholesale like fast food, retail, real estate, business
services, education, construction and deliver to the people.

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Ideas

What are some really good franchise opportunities for somebody looking to start a business?
Any tips about what to look for and what to be avoid?
The franchisor markets a unique business system under a trade name and franchising adopt
procedures to run their own business

Intellectual Property

The licensed use of the Franchisors intellectual property is part of all franchise systems.
Intellectual property covers know how of the operational side of the franchisors business, and
IT involved within the business, the accounts and admin side of the business and the use of
any trademarks and trade names belonging to the Franchisors business.

1.2 Concept of Franchise

Linked individual enterprises

Linked with the owner producer or distributor of a service or product grants exclusive rights
to an individual for the local distribution and or sale of the service or product

Agreed business terms

Get the manuals and it is the time period for franchisee which they can exercise their legal
rights under the franchise agreement. The agreement terms depends from franchise to
franchise when it very long. There are number of levels which reflect in term like investment
required, returns on the investment and industry which operates by franchise.

Offer standardized products/or services

All the offers in same condition as agreed to do same franchiser. The service relevant
resources, processes and systems are assigned for service delivery during a definite period in
time.
o You must have Operational Manual, and you must follow this exactly to produce the
goods and service.

Specified areas

System tends to have geographically dispersed units as it is their goal maximizes market
penetration. Places for Business helps us proactively reach customers, and build a great
relationship with them. Specified areas provide services, such as cleaning streets, providing
security, making capital improvements, construction of pedestrian and streetscape
enhancements, and marketing the area.
o System tends to have geographically units as it is their goal maximizes market
penetration.

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Mutual marketing and selling strategies

They were design some stuff to marketing their product using little books, magazine, and
banners, all are producing through head office of franchiser. This is the best path to customer
satisfaction and one of the most important ways in which we can build trust with our
customers.

1.3 Franchise Type

Product franchising: Manufacturers use the product franchise to how a retailer distributes
their product. The manufacturer grants a franchisee the authority to distribute goods by the
manufacturer and allows the owner to use the name and trademark owned by the
manufacturer. For e.g. Nissan motor vehicle and petrol retailing.

Manufacturing franchising: This is the most popular form of franchising. In this approach,
a company provides a franchisee with a proven method for operating a business using the
name and trademark of the company. The company will usually provide a significant amount
of assistance to the business owner in starting and managing the company. The franchisee
pays a fee or royalty in return for e. g. soft drink and alcohol industries.

Business format franchising: These types of franchises provide an organization with the
right to manufacture a product and sell it to the public, using the franchisor's name and
trademark. This type of franchise is found most often in the food and beverage industry, but
can be applied to other industries for e.g. McDonald fast foods.

1.4 Business Idea

1.4.1

Business Idea is to open a private Business Institute for educating local and international
students in Christchurch reigns. There are great numbers of universities, polytechnic,
government and private institute those are in the education sector in New Zealand. Institute
will provide Business education of Level 5 to 7 and focus on international students. The
business idea is to open it and starts delivering franchisees to the other areas of New Zealand
once it starts working successfully.

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1.4.2

Suitability Explanation
(i) Suitability of franchising There are number of international students
(Product of Services) come every year in New Zealand through
study work and settle education policy of NZ
government so it is the best options to grow
business in the education sector
(ii) Track record in the market place Local and government education is so
expensive for the international students and
government provides opportunity to open
private education institute under some terms
and conditions.
(iii) Potential likelihood of success Christchurch is big area and there are not too
much education providers. There are some
small areas of New Zealand where we can
target local and influence some international
students to live and study.

1.5 Cost Structure

Cost Structure Explanation


(i) Resources Business school will starts its education campus
from Christchurch (NZ). Education policies and
procedure will be setup, minimum standard of
education and resources will be set up that will be
must for the other franchises. Resources required
those are as follows: -
 Building
 Infrastructure
 Information System
 Business Plan and polices
 Staff and course list and approval from
NZQA
 Marketing Team

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(ii) Benefits and rights Christchurch Head office will have all rights
reserved to take any decisions regards future of
Business Institute. Institute will earn money from
other franchises for using the name and system.
(iii) Payments and Liabilities for products Institute will set up its minimum standards of
education that will be must for the other
franchisors, international school fee will be setup
and Business course and education policies will
be setup.
(iv) Goodwill Most of the franchises paid some amount of
profit as a reward to the franchisor. Once
business is set up and other branches will be open
in different reigns. Company will support to the
other franchise to set up the business and will
provide required support to set up the business.
Franchise will make relation between different
units.

(v) Royalties Royalties will be used to keep business updated


and collected from the franchisee of the Institute
for the right to ongoing business. Like percentage
of number of enrolled students
(vi) Other resources Other resources like HR services, School
information system, legal services etc will be
delivering to the different franchises.

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1.6 Responsibilities of Franchiser

(i) Supply of products or services Franchiser is responsible of delivering products


and services among customer. Franchiser takes
crucial decisions to deliver services like if there is
any legal services needed regards education
policies franchiser makes sure chain is working
properly and deliver it as it required
(ii) Business Training Support Master franchiser makes sure training of deliver
of brand or services are up to meet the standards.
Fresh business owner gets support regards open,
setup and run the company’ brand names from
the master franchisor.
(iii) Marketing and Promotional Support Head office delivers marketing and promotional
support to the franchise. Weakly promotional and
cycles are decided from the master franchisor.
Like in Christchurch Burger Fuel gets staff from
Wellington for setup the store and product
promotions.
(iv) Provision of financial Information on Overall performance will be measure in every
overall performance year on setup time. All the information will be
collected to make financial forecasts. How
business is doing and what is needed to do to
achieve the goals will be consider in the meetings
(v) Financial and Statically Services to Main Institute will provide full support to the
the franchisee other branches. Financial services like financial
support,
(iv) Risk Management Support Business always has some risks involve and
company will follow right risk management
factors that will protect business from risks.
Company’s head office will provide full support
to the different location for any situation to
overcome from any harm from the business.
(v) Legal and regulatory Compliance Master Franchiser makes sure that all rights are
Assurance reserved. Any kind of legal or regulator issue
always subjects to the company’s management
team and they provide support of any raised
issue. Christchurch campus will provide
assurance all legal issues for Business Institute.

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1.7 Responsibilities of Franchises

Capital requirements When a franchise open a business, the burden of


capital is shifted to the new franchisee. All costs
of land, building, improvements, equipment,
furniture, furnishings, inventory, supplies and
working capital are the responsibility of the
franchisee. Franchiser’s main responsibility to
start any business is the capital which he is
investing. So it is the franchiser’s responsibility
to provide money to start the money. He has to
provide business model and money and
franchiser care legality of the capital and doesn’t
care that where that money is coming like is the
money come from bank of personal investment.
Form and term of payment to the franchiser Franchise has to pay initial franchise fee that
normally cost $20,000 to 45,000 when the
franchise agreement is signed and ongoing
royalties fees is also set up in the agreement.
Royalty Payments Normally franchise agreement signed and
franchise fees are paid by the franchise to startup
the business and franchise also has to pay
royalties weekly or monthly that is normally 5 to
15 percentages.
Personal work commitment Franchise’s personal work commitments are to
set up the business, follow franchisor’s directions
to run the business.
Operational requirements All strong business franchise has successful
operational system in place to ensure that
franchise is working accurately. Proven business
operational manuals should be available to start
the franchise if they don’t have it should be
requested to franchisor to provide those.
Marketing requirements Franchise can market the product and services
but franchise’s head offices also provide full
support to market the products and services. The
best way to market the product and services are
internet, radio, TV, manuals adds with new
papers.
Reporting It is franchise’s responsibility to accurately
generates day to day business reports while
following operational manuals those are provided
by the head office.
Term of involvement Franchisor involve every time in the business.
there will be written agreements will take place to
consider in which instances franchisor can
involve for some decisions if franchise doesn’t
working properly. Company head office will
have all rights reserve to for the final decisions.

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Part B

SKIDS is an after school care provider to the primary which was started by two mother in 1996. They
came up with an idea where kids take care. It was started in Auckland and now its sub franchise are
all around the New Zealand and it has been successfully serving NZ coming generations from last 18
years successfully. Now more than 70 skids schools are working in New Zealand and it has opened its
branches internationally in Australia, UK and South Africa. Skids provide very professional care to its
children and all the recruited staff members are approved and trained certification from NZQA. We
have some business competitors but we are taking care of our people and committed to expand more
franchise in other areas of NZ.

2.0 Key Features of Franchises

2.1 Positive Image


Skids started by two mothers in 1996 for care of primary school aged children and provide them daily
supervision. Its first centre was in Auckland and it expanded during the time and currently it has more
than 70 centres all around the New Zealand. Skids successfully providing afterschool services form
1996 and are famous and reputed among people. It started from just one branch and now skids has
group of care schools nationally and internationally. MORE POSITIVE INFO REQUIRED

2.2 Principles of Franchise


Skids are NZ’s number one service provider out of school care and recreational programs and it win
Westpac New Zealand Franchise award for three consecutive years. It is recognised by school
principles as a safe structured for the primary school children. More than 3000 children served safely
in the skids schools. Skid is committed to expand more franchise not only locally but internationally.
We want that our services and care should be worldwide recognised and become international brand.
Our goal is to serve coming generation and give them great value and experience childhood.

2.3 Products
Skids provide primary after school care services to the children. It has trained staff to provide quality
care to the kids. Skids offers- Before school care, After School Care, School Holidays Programs,
Skids active sports Programs to the after school children. There are some other organisations those are
providing after school programs to the primary school kids but if we compare to the skids with them
skids is the oldest and reliable service provider. Kidspots and school outs are the main competitors for
skids but we are NZ’s old, reliable and trustfully brand.

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2.4 Outlets
Skids started in 1996 and it has spread throughout the New Zealand some of its outlets are as
following: -

Auckland south
Auckland central
Auckland East
Bay of Plent
Taupo
Queenstown
Canterbury

There are more place where skids exists but still we can grow and in some reins we can start skids
branches those can be Rotorua, Tauranga etc. We don’t have branches in small places those can be
consider for the future business plan

2.5 Establishing Franchise Outlets

Skids have been working from last 18 years successfully and opened its franchise in different areas of
not only New Zealand in foreign countries also like Australia, UK and South Africa. Company’s
business performance has been very good during the time and it is one of the reputed and respective in
the field of after school care. Company’s financial structure is well maintained and is capable to
provide full support for new branches. Skid sending area managers to support the schools on
time. So it would be great idea to start Skid franchise.

2.6 Franchiser Projections


 Children in skids schools are safe and secure and there is not any serious accident
happened in the past time.
 Skids provide quality care to the children. It is one of the reputed brands of NZ.
 Successful After school care provider from last 18 years
 Over 70 care school in Nez Zealand and more in foreign countries

 In the future company has planned to open more schools in locally and
internationally. Company is committed for best child care services.

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2.7 Competitors performance

Skids have some competitor those are providing same after school care services to the people. Kidspot
and school outs are famous among them. They also spread their business in the country. But stability
of skids have been very good because it is 18 year old brand and providing after school care services
to the kids from long time. Company has spread its branches to the different reigns of New Zealand.
Large number of people trust in the top quality services of Skids.

2.8 Benefits from Franchiser

 Providing equipment of school such as playground, classrooms, activity equipment.


Skid is recognised by primary school principal, so they can easily to communicate
with school.
 Providing ongoing training that is accredited by NZQA for your team members, in
order to improve staffs’ education standards.
 Providing annual OSCAR Assistance grants to our business for operating cost. Skids
have no charge fees.

2.9 Background

For a working parent, It is very important to choose a safe and friendly environment for your children.
We are the largest private out-of-school care in New Zealand. We provide a safe environment, a lot of
activities, qualified teachers for your children. The first skids centre is established in Auckland in
1996. Now we have at least 70 centres around the country.

2.10 Business Plan

Our after school programme will be established at Primary school near Burnside. We hire qualified,
experienced and skilled staff work with us. Every staff has education certificate. NZQA provide
ongoing training to your team. They love children and they are very friendly. Our staff will collect
the children from different schools. If your children join us the whole term, we can get some presents.
If you join us all year, you will get discount.

With increasing of the children and income, we will establish the second centre. (We have two place
can be chose. One is Burnside, another is North New Brighton. Skid is committed to expand more
franchise not only locally but internationally. We want that our services and care should be worldwide
recognised and become international brand. Our goal is to serve coming generation and give them
great value and experience childhood. We have 150 students enrolments at the moments and
expecting more will come during the time. We are expecting we will have 250 children by the ending
of the year.

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2.11 Operations Manuals

 School timings
 Staff and teachers guide
 Camus guide
 Non Smoking Policy
 Accident Procedure
 Supervision Plan
 Enrolment guide and service
 Kids activity
 Kids illness policy
 Kids food and precautions of services
 Food cooking manuals and instructions
 Health and safety
 Emergency evacuation guide
 Parent Support and Education Policy

Skids out-of-school programme contains three parts: Before school care, after school care and school
holiday programme.

1. Before school care.


Children are sent to school at 7:30pm, parents must sign in.
Breakfast is provided for the children, if you need after this, until 8:45am, the time of games and
activities.
8:45am clean up, class is begins.
2. After school care.
(1) Start from 3:00pm to 6: pm. You can pick up your children anytime.
(2) You can select the time from3:00pm to 4:00pm, 3:00pm to 5:00pm, 3:00pm to6:00pm. You
can also choose the day that you children need to care.
(3) Roll call and afternoon tea.
(4) After school care provide variety of activities, such as cooking, sports, drama, fun games, art
& crafts, supervise their homework, etc.
(5) Every day we will change games and activities. Children will feel different every time.
3. School holiday programme.

2.12 Marketing Support

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Skid gives great support to the franchise and it sends its area managers to check that things are going
well. Skids doing following marketing campaign: -

 Website Guide
 Face book and Twitter links
 TV Advertising
 New Paper Advertising
 Flyers and advertising holdings

Our franchise has gained a trust of principal. Our programme has variety of activities; many children
hope to join us.

Depend on providing variety of activities, such as cooking, sports, drama, fun games, art & crafts,
supervise their homework, etc. Staffs are skilled, friendly, experienced with children and give them a
safe care and stimulating programmes. I am confident that children love these programme, they are
able to tell their family, neighbours, and friends of their family. These are potential crowd.

We supply quality before school, after school and holiday programmes between the ages of 5 to 13.
We make our children thrive and grow very well, developing them life-skills.

2.13 Communication
Increasing well known, we need do the following things:

1. Sending email regularly (especially before school holidays). Let children and their parents
know our programme time schedule so that they have enough time to choose what they need.
And they can also browse on website, face book, twitter. You can easy to find out the
telephone number of our company on website. If you have any questions, contact us.
2. Printing advertising material. In this way, We introduce our after school programme
franchise, so that most families know us and enjoy joins us.
3. Putting advertisement on local newspaper. Our holiday programme welcome to every children
who interested in.
4. Setting community notice boards on bus, in library,

2.14 Location

For after school programme franchise, the most important thing is to choose the correct location. The
best site must be close to school, park, library….. in order to provide more and more place to students
for their activities. I considered that we need select high quality communities (area, district) where the
kids’ parents would like to help their children to develop various skills. As kids’ parents have their
own job, they haven’t enough time to take care of the children. A lot of primary schools like
providing classrooms to us, it’s fortunate for our franchise. Our staff can easy collect the children to
the After School Care.

There haven’t sKids centre in Burnside and North New Brighton in Canterbury. I am confident that It
has a good prospect in these area.

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Part C

3.0 Evaluate of Franchise Proposal for your Chosen Franchise

3.1 Attractiveness and Viability

Factors for Evaluation Range of Reason for the ranking


Attractiveness
(Ranking; 1 for high, 2
for viable and 5 for
unattractive)
(i) Range, availability, 5 Business stands on products range and
and quality of availability without them business will
products and not run and it will be unsuccessful
services
(ii) Ideas and 4 Operational support is crucial for the
Intellectual business, to start the franchise a
property franchise need operational support for
the business.
(iii) Franchise are and 5 So crucial for the franchise because in
territorial rights the end franchisor hold the legal rights
and responsible to make changes. If
franchise doesn’t follow the things right
contract can be cancel and franchisor
get back the support and franchise
cannot run the business with that name.
(iv) Distribution 2 When there is any emergency comes
Arrangements then franchisor need to arrange
distribution from other places.
(v) Marketing and 4 Franchisor helps franchise for the
promotion support products promotions and support to
and requirements achieve goals through advertising and
promotions but franchises also cam
make some of the promotions and
market their products.
(vi) Royalty levels and 5 When any one buys any franchise it
responsibilities comes under agreement to pay
franchise fees and royalties so it is the
franchise’s responsibilities to pay the
royalties as agreed.
(vii) Legal and 5 Necessary for the business for any issue
regulatory
requirements
(viii) Training support 5 Necessary for the staff members
because of health and safety of kids
(ix) Operational 3 Viable for the franchise because
Support company gets all manuals and support
from the head office and once business
setup staff and franchise knows about
it.
(x) Administrative 5 It is so important because franchise
Support may need any help from head office

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any time relates to products and


services, an emergency or legally
(xi) Pilot operation 3 Viable for the franchisor because it’s
opportunity good to test the franchise or business
but once product and serviced are
recognized by the people franchise
don’t need to make any test.

3.2 Investment Viability

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Factors for Evaluation Range of Reason for the ranking


Attractiveness
(Ranking; 1 for
high, 2 for viable
and 5 for
unattractive)
(i) Franchise purchase cost and 5 Franchise have to pay the
payment terms franchise costs to startup the
business so it is highly important
(ii) Franchise fees 5 Franchise fees are must for the
business
(iii) Asset and liabilities 4 Assets and liabilities are
specification and costs important and should be
balanced but once business set up
it keep balance.
(iv) Availability, extent and cost 4 Attractive because business is
of external finance; setup on the cost and external
finances are also have to pay
(v) Availability, extent and cost 5 Highly attractive because
of franchiser finance business is setup on the cost
finances and personal capital
(vi) Goodwill cost; Royalty, 3 It viable to pay for the company
Trademark, Patent Cost but it is contracted and company
have to pay these amounts
(vii) Cost of management services 1 Franchise recruit people and can
owner can manage his premises
(viii) Cost of operational support; 3 Franchise paid franchise fees and
Marketing and promotion once business is setup don’t need
cost to worry about it.

3.3 Resource Viability

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Factors for Evaluation Range of Attractiveness Reason for the ranking


(Ranking; 1 for high, 2 for
viable and 5 for
unattractive)
(i) Inventory Level and 5 Highly attractive because stock
Cost in hand and its costs should be
accurate. Inventory level should
be up at least up the minimum
standards and franchise will try
to meet all the requirements for
that
(ii) Pricing Structure and 5 Franchise have to meet the
pricing franchisor minimum standard of
standardization pricing and pricing structure
requirements should be accurate to run the
business successful
(iii) Operational, training, 4 Staff and franchise need to get
and organizational right training and support but
support provisions once all business setup
and cost; franchise don’t need to worry
about it
(iv) Product or service 4 Product and service support is
supply undertaking important because some time
franchise may struggle for the
materials that are needed to
supply services
(v) Quality assurance 4 Franchise have to meet the
provisions and costs standard of quality of
franchisors because without
quality franchise can lose its
customers
(vi) Marketing and 1 Franchisor do most of the
promotions resources promotions so franchise don’t
and costs need to worry about it but he
can spend his time to market
the product promotions if he
want

3.4 Business Information and Statistic

Factors for Evaluation Range of Attractiveness Reason for the ranking


(Ranking; 1 for high, 2 for

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viable and 5 for


unattractive)
(i) Business Locations 5 Franchise location is crucial and
business idea should be to select
that region where number of
young children more that they
can join skids
(ii) Company Services 5 Skids services are highly
attractive and people knows
about it and that why number of
child care center working
properly
(iii) Environment 5 Environment for the skid’s
children is crucial and highly
attractive because NZ is
multicultural and it and need to
be equal environment for all the
people
(iv) Safety 5 Safety of the people at premises
is crucial and highly on demand
(v) Area business 4 Area of business information
information highly attracts because lack of
information company can lose
its customers. Franchise should
keep the vital information about
products and services up to
date. Franchise should
communicate franchise for the
coming business changes

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3.5 Business Information Statistic

Factors for Evaluation Range of Attractiveness Reason for the ranking


(Ranking; 1 for high, 2 for
viable and 5 for
unattractive)
(i) Resources, expertise, and 5 We need qualified staff. And
benefits to be provided franchise provides training for
by the franchiser the staff and people. All
resources and the use of those
resources is crucial and
franchiser should take care of
the business by guiding the
franchise
(ii) Financial and business 5 A strong financial system can
capacity of franchiser support and maintain market
principals/ or operation. Financial capacity is
organization crucial with ought strong
financial background franchiser
cannot expand the business
(iii) Financial and business 5 Strong financial capacity of a
capacity of franchisee franchise can make strong build
of business. If franchise spend
the capital amount from his own
pocket than he don’t need to pay
interest and franchise can earn
more
(iv) Business performance of 4 Business performance of
previously established previous franchise is important
franchise operations that shows how attractive
products and services are. If
those are doing good means
company is famous and reputed
among people and they trust in
it.
(v) Undertakings by the 2 Franchiser has the final right to
franchiser allow franchise to run the
business. But once business if
set up and franchise starts
working good don’t need too
much of interruption
(vi) Provisions for the parties 3 Viable for the franchise because
to assess franchise franchisor can access business
business performance in performance but does not access
relation to projections many time and not so attractive.
and review and
renegotiate aspects of the
franchise arrangements
(vii) Provisions for sale of the 5 It is very important to obtain
proposed franchise many experience and trained
operation staff to get good sales.
Franchiser provides full support
for the new business to set up

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and guide to run and achieve


sales target from head office
(viii) Rights of franchiser and 5 Franchise has paid fees to the
franchisee franchiser to set up the business
and can use the name and brands
without any hesitation. Other
hand franchise have to follow
the right procedure to run the
business and do not need to
across the barriers those are set
up in agreement
(ix) Provisions for rights and 4 Franchiser has all rights
responsibilities of the reserved and responsible to
franchiser and franchisee supply information to the
at the conclusion of the franchise to set up the business
franchise period and should provide manuals to
start the business to franchise.
Franchise should follow the
agreed instructions for the
business
(x) Relevant information 2 Franchise proposal provide all
gathered from evaluation agreed information but once
of franchise proposals everything is get settled
franchise don’t need to worry
about it,
(xi) Conclusions that 4 Final output is important for the
communicate results of company that will guide that is
the evaluation in a we are in the right track and
manner and form that doing things right. Company
meets user requirements should have time to time
communication with customers
to know how things going

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