Pa berry Search for he keywords ubuey Tancise © find ut more about Subway and francising Sppertunties Joina leader ‘naigh-grouth industry. Low Investment, na ‘xpariencenoode, Find out more tay! Be your own boss tomorow. Ti bartnces | Going global Discussion FEB Work with a partner, Discuss the questions about franchising, ‘Whats a franchise? Can you det ‘What types of businesses tend to he franchises? How much control do you think the owner of franchise has? Think about selary, uniform, equipment and decoration Scan reading BG Read the aniele about the Subway franchise and answer the questions below. 1 Who is Fred Deluca? 2 Approximately how much would you have to invest to open a Subway franchise? 55 Where was the fst Subway franchise opened? 4 How many counties have Subway sandivich shops? Reading for detail {Rend the ance about franchising and mark the sentences T (tue) or F (als. 1 There are more McDonald’ restaurants in the USA than Subway sandwich shops, 2 Ailton Hotel Corp franchise is very expensive in comparison to a Subway franchise 3. A person who rns franchise can decide what their employees wear 4 Fred Det.uca’s firs franchise shop was very far from his ist shop. 5 Subwa’s frst overs franchise was opened more than 20 yeas aftr the Bist shop was opened. '§ The franchisors responsible fr all ax and legal matters within the country the franchise is opecating in 7. Franchising hes had a positive etfect on Fred DeL.ues's company. Vocabulary {In each set of four, match a word from the article with the comect meaning. 1 rapidly 8) shop or store that sll goods tothe public 2 phenomenal very quickly 5 fumiture an fittings ¢} extaordinary 4 outlet €) equipment o stares 5. abroad «income or revenue 5 consider §) business whichis owned by another company 7 subsidiary 8) ina foreign country 8 tumover 1) think about Discussion ES} With a partner discuss the questions. 1. Do you thinkea franchise is elly his/her own boss? Make a list of the tyne of decisions a franchisee can and cannot make themselves. 2 Ifyou had the choice of buying a cup of colle oF a hamburger from a no-name company tra well-known Irancise, which would you choose? Why? 3 Myou wanted to start your own business would you think about baying franchise? Why? Why not? 4 Do you think there any types of businesses that would not work as franchises? What are ‘hey and why da you think they wouldn't work?oing global with a FRED DELUCK, the CEO of Subway, ‘pened his fst Subway restaurant in Connecticut in 1965 wih ust US$2,000 Borrowed fom @ eng ofthe family. + Subway now has more outlets inthe USA ‘ane Canada than MecDonald's. And the company is growing rapidly with elgnt new outlets opening wore every cay ‘One af the reasons for Subway's, ‘a phenomenel grow Is thatthe franchise fee is relatvey cheap, A Subway franchise fee costs less then €10,000 ‘and unk a franchise with SUBMARINE If you would like to he a global player with outlets in hundreds of countries, perhaps you should think about setting up a franchise business. Hiton Hotels Corp, for axampie, you do + not have to invest 2 smal fortune in furniture and ftings. A subway shop can cost less than €100,000 to equip, What exactly isa franchise and how does it work? 1 Once 2 company tke Subway has. establshed itself and can show that ts business model works, it can offer its trademark or name to other companies ar individuals. They pay an intial 2 franchise fee to use the name and a Certain percentage ofthe gross prot fr turnover. The franchisee aise has to Tl the franchisors Civ taneais, for ‘example, the stores and autlets have to s be equipped and ited in @ certain way or te staff may have to wear a special uniform, But the rsk forthe franchisee 's minimized - they are buying 8 well arabournusines QD krawn and estabished brand with tie » ard tested products or services whieh ‘consumers can identity with They know what io expect wether they are in Bejing, Bombay or Boston. Franchising isa simple, but effective a way of expancing rpicly, Nonever, 2s Fred Deluca discovered fakes ‘ime and a great deal of ard work to stablish your eompany’s name and ‘uation, Ietaok Fad Detoea rine years befor he fle the time was rant ‘open the frst ranchised Subway ‘Sondwvich shop .. and it wasr't on tha ‘other side of the globe, but ust a 40- ‘minute drive from Fed's fst shop. It ‘= wasn't unt 1984, almost 20 years after going nto business, tat the st Subway franchise opened abroad ~ and notin ‘Canada, Mexico or Europe ae you mignt ‘xe, but Banrain ‘= As Subway soon discovered, franchising is an excellent business ‘modal if you ae thinking of gone global 2 franchisor does nat need to worry ‘bout the las or taxes of the foreign I operates in it coesn't need Staff to set up and run subsidiales abroat; nor does It aaed to Offer language training or erosscutural courses vo stat. The franchisee is 1 responsible for running the business ton a daytoday basis and mating sure Teamales with te fegistation af the country it onerctas in ‘Subway curently operates in more » than 86 countves . Sif you have @ ‘eod idea, such as how to make and Sell a submarine sandwich, periops you should conser franchising if you want to go gobal. They know what to expect whether they are in Beijing, Bombay or Boston ”Discussion Ei] with a partner, put these stages of researching a franchise into the correct order. 4) Shortlist wo or thre franchises and alto some ofthe fanehisees running these businesses. How have these hanchises developed? Are dhe franchisees happy withthe suppor thei ranchisor provides? C] 2) Dedide haw much money you car silord to invest and how much money you eel you can borrow. Be els! } When you are bappy that you have al the infarmation you need to make decison, compete the application form ofthe franchise you thinks the most suitable for you. 4) What are you good at? What do you enjoy doing? Identify the type of business you would like to operate in.) ) Contact the faachises operating in that business and ask them to send you information about thir franchising apreements.C) 1) Do some market research. Do the franchises you have shortlisted already have outlets in your rea? Is there a lot of competion? Does the area have enough customers o clients ibrthe producto service you want 0 sell? O} Listening for gist EH D 2-2: Listen to Maria Coetho talking to business journalist Dave Townley about her experience of running a anchise. Answer the questions. 41. What kind of business does Mari run? 2 Where i her business? 5. Isthe busines successul? ED Listen to Maria again and complete a summary of her franchise Maria returned to Portugal and decided she wanted to be her (1)_____and 2) a teashop. Matia flew to the UK four or five times to select the right (3) She paid a Iranchising (4) of £12,000. She took part ina two-week (5) ‘The franchise's European agent was unhappy about the location ofthe (6) —_ Maria had chosen. She spent another three months trying to find a more ceniral outlet she could alfard to (?) ‘The ben agreed to (8) ___ Maria €50,000 and she (9) another €50,000 from the tare Fs “Maria persuaded the franchisor to let her have the (10) ___ and (11) _ made Focal. ‘The business is now very success; the (12) __ has increased by 50% over the same period last year.