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An Introduction to Franchising and its Importance for Entrepreneurs and Small and Medium-Sized Industries   by  Tan Tee Jim,  S.C . Senior Partner, Head, IP & IT, Lee & Lee  Kuala Lumpur,  July 2008
Growth of Franchising ,[object Object],[object Object],[object Object]
Growth of Franchising ,[object Object],[object Object],[object Object],[object Object]
Brief Outline ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What is franchising? ,[object Object],[object Object]
What is franchising? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What is franchising? ,[object Object],[object Object],[object Object],[object Object]
TYPES OF FRANCHISE ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],PRODUCT DISTRIBUTION  FRANCHISES
PRODUCT DISTRIBUTION  FRANCHISES ,[object Object]
PRODUCT DISTRIBUTION  FRANCHISES Produces the syrup concentrate  Sells the syrup concentrate FRANCHISEE Produces the final drink Retail Stores Restaurants & F&B Outlets Vending Machine Operators
BUSINESS FORMAT  FRANCHISING ,[object Object],[object Object]
Famous Examples
BUSINESS FORMAT FRANCHISING -  outlet in  Sale, Australia outlet in  Marseille, France
MANAGEMENT  FRANCHISE ,[object Object],[object Object]
Famous Examples
Why is franchising important to SMEs? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
WHY FRANCHISE? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
WHY FRANCHISE? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Common considerations of franchisors  ,[object Object],[object Object],[object Object],[object Object]
Common considerations of franchisors ,[object Object],[object Object],[object Object],[object Object]
Common considerations of franchisees ,[object Object],[object Object],[object Object],[object Object]
Common considerations of franchisees ,[object Object],[object Object],[object Object],[object Object]
Franchisor–Franchisee relationship ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
BE CAREFUL ,[object Object],[object Object],[object Object]
[object Object],[object Object],BE CAREFUL
[object Object],[object Object],[object Object],[object Object],Common Mistakes of Prospective Franchisees
[object Object],[object Object],[object Object],[object Object],Common Mistakes of Prospective Franchisees
[object Object],[object Object],[object Object],[object Object],[object Object],FRANCHISEES IN SINGAPORE
FRANCHISING IN SINGAPORE Reason for Franchising 2/3 of franchisees felt that economies of scale in bulk purchasing encouraged them to consider franchising
FRANCHISING IN SINGAPORE Feasibility of Franchising Franchising is a more feasible option of business expansion than starting own outlets
FRANCHISING IN SINGAPORE Success of the Franchise
FRANCHISING IN SINGAPORE Success of Franchising Franchisors’ Improvement in Average Monthly Sales since Franchising
FRANCHISING IN SINGAPORE Success of Franchising Franchisors’ Improvement in Average Monthly Net Profit since Franchising
FRANCHISING IN SINGAPORE Success of Franchising Franchisors’ Improvement in Average Monthly Sales since Franchising
FRANCHISING IN SINGAPORE Franchising helps existing businesses do better.  Franchisees’Response to the Statement: “ Joining a Franchise has Helped Me to Do Better than Before.”
FRANCHISING IN SINGAPORE Business Performance Percentage Increase in Average Monthly Sales for Franchisees who were Previously Running a Business in the Same Trade
FRANCHISING IN SINGAPORE Business Performance Percentage Increase in Average Monthly Net Profit for Franchisees Previously Running a Business in the Same Trade
[object Object],[object Object],[object Object],[object Object],[object Object],Conclusion
Thank You   Tan Tee Jim,  S.C . [email_address] Kuala Lumpur,  July 2008

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Wipo Smes Kul 08 Topic01

  • 1. An Introduction to Franchising and its Importance for Entrepreneurs and Small and Medium-Sized Industries by Tan Tee Jim, S.C . Senior Partner, Head, IP & IT, Lee & Lee Kuala Lumpur, July 2008
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11. PRODUCT DISTRIBUTION FRANCHISES Produces the syrup concentrate Sells the syrup concentrate FRANCHISEE Produces the final drink Retail Stores Restaurants & F&B Outlets Vending Machine Operators
  • 12.
  • 14. BUSINESS FORMAT FRANCHISING - outlet in Sale, Australia outlet in Marseille, France
  • 15.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30. FRANCHISING IN SINGAPORE Reason for Franchising 2/3 of franchisees felt that economies of scale in bulk purchasing encouraged them to consider franchising
  • 31. FRANCHISING IN SINGAPORE Feasibility of Franchising Franchising is a more feasible option of business expansion than starting own outlets
  • 32. FRANCHISING IN SINGAPORE Success of the Franchise
  • 33. FRANCHISING IN SINGAPORE Success of Franchising Franchisors’ Improvement in Average Monthly Sales since Franchising
  • 34. FRANCHISING IN SINGAPORE Success of Franchising Franchisors’ Improvement in Average Monthly Net Profit since Franchising
  • 35. FRANCHISING IN SINGAPORE Success of Franchising Franchisors’ Improvement in Average Monthly Sales since Franchising
  • 36. FRANCHISING IN SINGAPORE Franchising helps existing businesses do better. Franchisees’Response to the Statement: “ Joining a Franchise has Helped Me to Do Better than Before.”
  • 37. FRANCHISING IN SINGAPORE Business Performance Percentage Increase in Average Monthly Sales for Franchisees who were Previously Running a Business in the Same Trade
  • 38. FRANCHISING IN SINGAPORE Business Performance Percentage Increase in Average Monthly Net Profit for Franchisees Previously Running a Business in the Same Trade
  • 39.
  • 40. Thank You Tan Tee Jim, S.C . [email_address] Kuala Lumpur, July 2008