Suson, Maica Mikaela G.

MM 3-B
Quiz

1. WHY DO SOME INTERNATIONAL FRANCHISED BUSINESS NOT

SUCCESSFUL?

A business that wants to expand quickly, diversify its risk, and capitalize on a
franchisee’s capital and entrepreneurial spirit may find franchising to be a viable option.
Because their franchisors don’t apply strong digital marketing methods right away, many
franchisees fail. There are no trustworthy statistics on franchisee failure, and the majority
of studies about franchising success rates that are frequently referenced are both
inaccurate and out-of-date. The majority of the studies only included currently operating
franchisors; franchisees of failed systems were never even included. The fact that there is
no acknowledged definition of franchise failure just makes the issue worse. Franchisees
can completely fail, retire or change careers, or sell their failing business to a new owner
without ever having to close. Regardless of the reason, the franchisor should take any loss
of a single franchisee-owned location seriously and conduct an analysis to determine
what went wrong and what needs to be done to enhance the performance of the franchise
system.

2. HOW IS INTERNATIONAL FRANCHISING AFFECTED BY BOTH ECONOMIC &

LEGAL ASPECTS IN FOREIGN MARKETS?
International franchising can, in some ways, be a simple and uncomplicated
procedure. After all, the franchise concept is built around infrastructure, simplicity,
replication, and streamlined operations. In general, what works in one place also works
elsewhere. In addition, a lot of global markets are undeveloped, wide open, and have
huge potential for franchisors that have the correct goods, services, and corporate culture.
International franchising enables businesses to grow into foreign markets, add new
goods, and attract new customers while assuming less risk than typical company-owned
expansion. By using franchising to expand internationally, an organization can avoid
spending time and money on local recruitment efforts as well as moving its current
employees and offices. Franchisees help communities by building them up. Franchise
owners support communities by improving them financially. Franchises are crucial for
sustaining the local economy in cities around the country by generating jobs and paying
taxes. Affecting the International or overseas franchisors investing in the Philippines
sometimes choose to enter the Philippine market through joint venture or master. Because
international franchising is an entry method that enables businesses to expand into new
areas with minimal risk and even less control.