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Franchising Case Study


Franchising refers to the practice of using a business model success to capture new and retain the existing market shares. It can also be defined as a strategy that a business can use in retaining and expanding its customer base.

Franchising has enabled several businesses that were opened in the past to grow to whole new levels of profitability and customer satisfaction. Mary Anne and Mark have been able to develop a unique twist to their sauce. This as a result has made them realize constant growth of customers in a steady positive way (FreeAdvice Staff n.d.).

Within a period of five years they were able to open up a second restaurant. Unfortunately, Mary has not been able to make enough sauce that would meet the rising demand. Franchising would be the best way to support their business to meet growing demands. In addition, it would also provide a way of raising more capital to expand into other regions.

Through the private investors they were able to raise $ 1 million to acquire and create more franchise systems. They were also able to meet all the regulatory requirements and the marketing finances for the franchise. In franchising their business they would apply the strategy described below.

Steps to take in franchising business. Acquisition of a license and use in legal business

As defined by the international franchise association (IFA), franchising involves an agreement between two parties. This agreement would enable the franchise owners to market the products as their own or use the trademark registered for commercial purposes. Since they have been receiving request to purchase franchises, it would be wise for them to obtain a license agreement that would enable them to trade with the trademarks acquired.

The license would also enable them market their products using other registered trademarks without being seen as operating illegally. This process has enabled the Beauchamp’s buy and sells several franchises between $300,000 and $500,000. Mark is also planning to open up a state of the art franchise system that would be operating under the company’s trademark (Web Editor, Manager Advertising & Marketing at PIPERS n.d.).

Common Development Strategy and Improvement of Growth of the Franchise

Mark and Mary Anne have involved themselves in acquiring and disposing of franchises. Mark and Mary Anne need to develop common engagements on development and improvement strategy of the franchise business. Information such as the audited financial statements, a description of the team management for the business and its experience are required.

Hence a need for hiring a professional franchise consultant. This needs mutual trust and respect and a sharing of the general aims and targets of the contract. The main objective of this approach would be that both parties would benefit from the common goals and objectives of the company.

The franchisor is also required to provide support to the franchisee. This will involve encouraging the systems of operation. The franchisor should also follow the practice guidelines and pay the maintenance fees such as marketing and the ongoing management expenses as a franchisor, taste of Yam needs to hire staff that will focus solely on helping franchise to grow to its projected growth level (Definition of Franchising n.d.).


Definition of Franchising n.d. Web.

FreeAdvice Staff n.d., Web.

Scarborough, NM 2011, Management: Small Business, 10th edn, Prentice Hall, New York.

Web Editor, Manager Advertising & Marketing at PIPERS n.d., Franchising & Licensing – What are they? and how can you benefit from them? Web.

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IvyPanda. (2019, August 12). Franchising. Retrieved from https://ivypanda.com/essays/franchising-case-study/

Work Cited

"Franchising." IvyPanda, 12 Aug. 2019, ivypanda.com/essays/franchising-case-study/.

1. IvyPanda. "Franchising." August 12, 2019. https://ivypanda.com/essays/franchising-case-study/.


IvyPanda. "Franchising." August 12, 2019. https://ivypanda.com/essays/franchising-case-study/.


IvyPanda. 2019. "Franchising." August 12, 2019. https://ivypanda.com/essays/franchising-case-study/.


IvyPanda. (2019) 'Franchising'. 12 August.

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