Level of readiness of cafe breton for business format franchising

Date of Publication

2006

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Business Management with Applied Corporate Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Business Management

Abstract/Summary

Franchising is a “specialized form of licensing in which one party (the franchisor) sells to an independent party (the franchisee) the use of a trademark that is an essential asset for the franchisee’s business and also gives continual assistance in the operation of the business” (Daniels and Radebaugh, 1998). In the Philippines, there is an upsurge in franchising and the local market shows space for growth. With this, Café Breton, a one hundred-percent Filipino-owned restaurant chain founded in 1998, is considering franchising as form of expansion. Adjudged by the Philippine Tatler as one of the Philippines’ best restaurants, Café Breton is known for its crepes and has received about 100 franchise inquiries to date. The aim of this paper was to determine the level of readiness of Café Breton to expand its business through business format franchising in the Philippines. A model that was not geared towards any specific industry was built by the group to determine the level of readiness of a company for franchising. Café Breton was assessed against various specific indicators which could be clustered into product, finance and franchisor attributes. To assess Café Breton the group gathered information through interviews, store visits, documents, and consumer surveys. For product, Café Breton was assessed positively in terms of protectable trademark, brand awareness and marketable product but advertising program was lacking while sales-promotion program must be improved. On the financial side, it was determined that Café Breton has shown positive growth and profitability over the last few years and that is has capital sufficient to develop and implement a franchise program. As for franchisor attributes, Café Breton showed readiness in terms of legal involvement, track record and innovativeness. However, for the operating system it falls short in terms of duplicability, standardization and site selection. Ultimately, the finding of the study was that Café Breton is at a medium to high level of readiness for business format franchising at this moment. The group has made several recommendations which include a proposed corporate structure for franchising, more extensive documentation, and increased advertising and promotions. Nonetheless, Café Breton shows promise in becoming a good franchisor in the future.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU13343; CDTU013343

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

133 leaves ; Computer print-out

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