Franchising, Licensing and harvesting

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Franchising,Licensing and harvesting



Whenlooking for a franchisor, individual businesses look for companiesthat their major interest is to distribute products and renderservices of high quality to their immediate consumers (Hughes, 2013).As a franchisor, this tip is essential. I will not only focus on thesale of franchises but I will concentrate more on the quality of theitems and the services to eliminate the notion of being in atheoretical business of selling.

Dedicationto franchising is also another feature that people look at. I willmake my franchising my main technique of distributing services andproducts rather than making use of huge stores owned by companiesthat preserve distribution rights through various networks like thesupermarkets.

Aneffective franchisor produces and markets items and renders servicesthat have high demand in the market (Hughes, 2013). With this inmind, I will step up my value since franchising value is rooted tothe franchisor.

Individualswho seek to penetrate into recognized markets go for franchisors whohave acknowledged trademark. With this in mind, I will make,popularize, and market my trademark for it to be accepted in themarket forces. Recognition of the trademark in the market is key toattracting franchisees.

Afranchisor is needed to have a stable business design and exemplarymarketing structure. I will apply this to ensure that there is aprovision for an extensive and whole training and support to thegeneral franchisee at a logical cost. I will include this as afraction of my franchise charge.

Therelationship between the franchisor and the franchisee should alwaysbe good. I will allow my franchisees to organize themselves toprevent any troubles in the future. A good relationship between myfranchising business and other franchisees will give room for successand cooperation.

Businessesare attracted to franchisors who compute the sales and the returnsdata that bring out the attractive profits to the business. I willapply this by ensuring that transparency is upheld and providelogical estimates which will be followed by well computed earnings atthe end of the season.

Companiestend to go for franchisors that conform to the standards of theAAFD`s fair and respect the bill that touches on the franchise. Iwill align my business to these aspects to compete favorably in thefranchising sector.


MacDonald`scompany is one of the exemplary examples that one can settle on whenexamining the franchise field. It is known in the business offranchising of restaurants (Cheng, 2012). I was attracted to thecorporation because of its rich history, which runs up to the lastsixty years. The fact that the founder of the corporation used tosell cups to make a living also raised my curiosity to find out moreabout the company. It is also evident that as from the 1950’s thecorporation left a mark in the life of families and children inAmerica. The Brand has grown to set up about 30000 restaurants acrossthe world. It is the synonym when it comes to every child preferredlocation to eat. These aspects have drawn me to focus on it.

Thefranchise fee in MacDonald Corporation varies from time to time withno notice. The real cost is reached at when a particular restaurantis given the applicant who is registered. The actual dimension of thefacility, where it is located and the styles employed in landscapingand decorating play a significant role in the determination of thefee. Currently, the least equity necessity for a novel restaurant is0.4 of the complete package or 25% in case the restaurant is inexistence (Cheng, 2012). The fee must emanate from non-loaned,unburdened individual capital, which comprises hand-delivered cash orpersonal businesses. A minimum $75,000 is what is charged.

Initialscosts include the franchise fee of about $75,000, security downpayment of $25,000, bid fee of $1,357, the approximated expensesduring the training program of about $150,000, and the estimated $1.6million to cater for the facility.

Royaltyfee in the MacDonald’s business includes the package fee funded ona monthly basis which currently stands at 4% of the monthly unrefinedsales. Rent is also on a monthly basis.

Applicantsmust be ready to take part in the training program, which takes aperiod of about 1600 hours. The training is conducted on both parttime and during the day it takes the self-administration approachand the hours dedicated to it are seen as part of the applicant’sassurance that he is ready to take part in the business. It is alsotaken through administration courses.

A4ps marketing strategy is an effective approach the corporationemploys to benefit the franchisees. The strategy takes care of theproducts, promotions, place, and the pricing which play a key role inthe business sector.



Oneof the competitive advantages of Honest Tea is the uniqueness oftheir product. Seth argues that what they are offering to thecustomers is a quality brand that matches what is packaged and it isimportant to the clients (Mariotti &amp Glackin, 2013). It boasts ofbeing the main brand to produce organic bottled tea that is certified(Samme, 2008). The tea is also appealing to the consumers due to thefact that it has less than two-third sugar percentage when comparedto other producers.


Asa customer, the significant advantage is the organic aspect. Sincethe Tea is produced in a certified organic environment, chances of itleading to ailments like cancer are very minimal making it healthfriendly.


Sethneeds to expand the competitive advantage of the tea. One probableway is focusing on the building on the health cognizance. He canattribute the Honest Tea to low chances of being prone tocomplications like heart disease, cancer, liver complications, andobesity. He can also build upon the aspect of eco-friendly. Since thetea is produced in an organic background, chances of environmentalpollution are minimal and this may draw more clients to it (Mariottiet al., 2013).


Businesspractices that are socially responsible are those strategies gearedtowards enhancing the lives of people. This may include upholding thehuman rights, improving the working conditions, and educating theconsumers.


Atthe beginning, personal and family funds were invested in thecompany. However, they came up with an advanced financing set up thatused warrants to safeguard the interests of the initiators. Theysecured assurances from individuals who were interested in financingthe company. This was prompted by the increased cost of productionand remuneration of the staff.


Itis evident that the marriage between Honest Tea and Coca-cola willimpact positively to the investors. Since Coca-Cola is an establishedbrand, the investors will be able to realize profits.


Themain reason behind the marriage between Honest Tea and Coca-Cola ismarketing (Samme, 2008). Honest Tea aspires to make use of thealready established brand to rise to greater heights. However, loyalclients are worried that the health aspect as a result of the organicbackground may be compromised.


Cheng,J. (2012). Emerging Markets Tempt Investors. WallStreet Journal – Eastern Edition.pp. C1-C2.

Hughes,A. (2013). 7 Steps to Becoming a Successful Franchisor. BlackEnterprise,43(9),22.

Mariotti,S and Glackin, C. (2013). Entrepreneurship:Starting and Operating A Small Business(4th. ed). Pearson/Prentice Hall.

Samme,S. (2008) &quotThe Coca-Cola Company Signs Agreement for 40% Stakein Honest Tea,&quot PressRelease, Honest Tea, Bethesda,Maryland.

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