INTRODUCTION

 
The growth of an entrepreneur in franchising involves examining the factors that contribute
to the success of an entrepreneur in the franchising industry. Franchising is a business model
in which an entrepreneur (the franchisee) is granted the right to operate a business using the
trademarks, products, and systems of a larger company (the franchisor).
 
Research on the growth of entrepreneurs in franchising has shown that several factors
contribute to success in this industry. One important factor is the entrepreneur’s ability to
follow the franchisor’s system and operate the business according to the franchisor’s
standards. This includes following established procedures for hiring employees, managing
inventory, and marketing the business.
 
Another key factor is the entrepreneur’s ability to build strong relationships with customers
and employees. Successful franchisees often have excellent customer service skills and are
able to create a positive and welcoming atmosphere in their businesses. They also have a
talent for hiring and training employees who share their commitment to delivering high-
quality products and services.
 
In addition, successful franchisees are often skilled at financial management and are able to
balance the costs of running the business with the need to generate profits. They are also able
to adapt to changes in the marketplace and take advantage of new opportunities as they arise.
 
Finally, successful franchisees are often committed to ongoing learning and development.
They stay up-to-date on industry trends and best practices and are willing to invest in training
and education to enhance their skills and knowledge.
 

Franchising is a business relationship where a franchisor (a company or individual who owns

the franchise system) grants a license to a franchisee (a company or person who contracts to
use the franchise system) the right to use the franchisors brand and operating system for an
initial fee (initial franchise fee). In return the franchisee provides a share of the income back
to the franchisor (a royalty). The license is contractual and is usually for a fixed period of
time. The franchisor selects candidates to become strategic-partners in implementing the
business plan and selling products and services to the franchisor’s customers using the proven
franchisors business model and/or their proprietary products. A franchise model has in place
policies and procedures so as to create consistency from one franchise location to the other.

As a growth strategy it provides franchisors the ability to gain market share by increasing
their points of distribution. Increased point of distribution results in greater exposure and
brand awareness. Franchisors are able to grow and have committed individuals operating and
driving the location. From a franchisees perspective, it allows the franchisee to get into
business with support, a brand name and a proven business model. This helps to reduce the
risks involved with getting into business.

It has become a part of almost every industry. Although people most often think of fast food
when they think of franchising, it is also found in retail, service, automotive, business
services, real estate and lodging.
There are several things that one must understand about a franchise. You are not buying the
franchise. Instead, you are acquiring a license to operate a franchise. You do not own the
name, but instead have a license to use the name. You do not own the business model, but
instead have the rights to use the business model for a period of time. It is a little like being a
tenant and renting. You don’t own the space you are renting, but instead have the use of the
space for a period of time.

Uniformity is a fundamental principal to the success of a franchise. There must be

consistency from franchise to franchise within a given business. By having the same product
in similar outlets, with consistent levels of service, the franchise is able to build confidence in
the mind of the customer and this drives people to the brand. Customers gravitate to what
they know, what is familiar and what they trust. The uniformity is created through operating
standards and procedures that are clearly documented in operation manuals. Franchisees are
required to follow an operating system and use the same suppliers of product, take the same
training. The system, suppliers and training are all designed to create a consistent experience
to the end user of the product or service and thus create an expectation and impression in the
mind of the customer.

The uniformity is enforced through a franchise license. This license gives you the right to use
the brand and operating system. The license also comes with obligations, to follow the
operating standards and systems, as clearly defined in the business model. If you fail to
follow the standards you may loose your license. With compliance to the system it drives the
market and enhances your investment. When you first look at a franchise agreement you may
find it controlling and very one sided in favor of the franchisor. This is normal and required
to allow the franchisor to control the integrity of the brand. As a franchisee, you must
understand that you simply can’t do what you want. You are required to conform. The
success of the system as a whole to build a brand is dependent upon consistency.
 
 
 

OBJECTIVES OF STUDY

PRIMARY OBJECTIVE

 To study about the growth of an Entrepreneur in franchising

SECONDARY OBJECTIVE 

  To know about  the brand recognition

  To identify the advantage of growth and opportunities in franchising 
   To analyze the investment requirement on the bakery business
 
 NEED FOR STUDY 
 
 
This study is done to find out what is the procedure to start a franchise and to also analyze the
different factors affecting entrepreneurs by starting a franchise. To start a franchise, an
entrepreneur faces a lot of difficulty in the current economy with such a fast paced world and
to gain recognition and popularity. 

This study mainly focuses on the entrepreneurs' side of the story and how they have
established their business and what are the different methods and tactics used by them to
attain the position they currently hold a place at. The research is done on TBI company and
their achievements.
 
 SCOPE OF STUDY  
 

The scope of this study is to mainly analyze the factors affecting the franchise and to provide
possible solutions to TBI. Another important note scope is to suggest TBI about the different
approaches to gain more social appearance.

 
 LIMITATIONS OF THE STUDY 

The limitations of this study are that the survey was conducted only with bakeries situated at
chennai, Secondly responses were mostly received from the teenagers and thirdly the study
was conducted only for 3 bakery companies.

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the plan ,structure and strategy of investigation ,to obtain the answers to
the research questions. It includes the details of how the data will be collected, what
instruments will be used to collect the data and the methods by which the data will be
analyzed.

 Descriptive Research

The research design used in this study is descriptive research. This type of research is used to
describe the characteristics of a population being studied. It does not answer the questions
about how/when/why the characteristic used to describe the situation or populations are
usually some kind of categorical scheme also known as descriptive categories.

 TARGET RESPONDENTS

SAMPLING

Sampling Method Convenience technique was used in this study to ensure that the
respondents were adequately distributed to represent various sectors. Non-probability
sampling It does not rely on randomization. This technique is more reliant on the researcher’s
ability to select elements for a sample. Outcome of sampling might be biased and makes
difficult for all the elements of population to be a part of the sample equally. This type of
sampling is also known as non-random sampling. Convenience sampling Convenience
sampling is a non-probability sampling technique where samples are selected from the
population only because they are conveniently available to researcher. These samples are 41
selected only because they are easy to recruit and researcher did not consider selecting
sample that represents the entire population.

Sample Size

A sample size of 301 has been considered for this study. 

DATA COLLECTION

Data collection is a systematic approach for gathering information from a variety of sources
to get a complete and accurate picture of an area of interest. All the data used in the study for
the purpose of analysis are primary data. These primary data have been collected through
questionnaires which were personally circulated and collected from the samples. The
questionnaire was comprised of both choice-type questions and questions which required 5-
point Likert scale responses.

Primary Data Collection

Primary data is a type of information that is obtained directly from first-hand sources by
means of surveys, observation or experimentation .It is the data that has not been previously
published and is derived from a new or original research study and collected at the source.
This questionnaire consists of both close-ended questions & open-ended questions.

INSTRUMENT DESIGN

 Questionnaire

 A questionnaire is sampling instrument which consists of predefined series of questions

which helps in collecting information from the samples/individuals.

Close Ended Questions

Close ended questions are just that direct questions that ask for specific information from a
respondent. By their nature they limit the respondent field of choice and length of response.
A close ended question is a question format that limits respondents with a list of answer
choices from which they must choose to answer the question.

The different close-ended questions used in this questionnaire are:

❖ Multiple Choice Questions: Multiple choice questions are a type which has a list of
answer choices from which they must choose to answer the question.

❖ Rating Scale Questions: A rating scale question asks the respondents to compare different
items using a common scale, where the participant is required to position each parameter on a
verbal, numeric or a graphic continuum. This is designed to elicit information about a
quantitative or a qualitative attribute.

❖ Dichotomous Questions: When a question has only two possible responses, we consider it
as a dichotomous question. Surveys often use these questions with outcomes such as Yes/No,
True/False, Agree/Disagree.

Open Ended Questions

An open-ended question is a question that cannot be answered with a "yes" or "no" response,
or with a static response. Open-ended questions are phrased as a statement which requires a
longer response.

TOOLS FOR ANALYSIS

All the data collected were coded and entered into MS-Excel and the analysis was done using
SPSS. The software was used to conduct the required descriptive tests, correlation and
regression tests successfully.

Descriptive Statistics

 Descriptive statistics are used to describe the basic features of the data in the study. They
provide simple summaries about the sample and the measures. Together with the simple
analysis, they form the basis of virtually every quantitative analysis of data. The various
techniques that are commonly used are graphical descriptions, tabular descriptions and
summary statistics. Descriptive Statistics are used to present quantitative descriptions in a
manageable form. In a research study we may have lots of measures. Descriptive statistics
provide simple summaries about the sample and about the observations that have been made.
Such summaries may be either quantitative, i.e. summary statistics, or visual, i.e. simple-to-
understand graphs. These summaries may either form the basis of the initial description of the
data as part of a more extensive statistical analysis, or they may be sufficient in and of
themselves for a particular investigation.

Percentage Analysis

 Percentage analysis is one of the basic statistical tools which is widely used in analysis and
interpretation of primary data. It deals with the number of respondents response to a
particular question is percentage arrived from the total population selected for the study.
From the below formula, we can the percentage of the data as:

𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑜𝑓 𝑟𝑒𝑠𝑝𝑜𝑛𝑑𝑒𝑛𝑡𝑠 =𝑁𝑜. 𝑜𝑓 𝑝𝑎𝑟𝑡𝑖𝑐𝑢𝑙𝑎𝑟 𝑔𝑟𝑜𝑢𝑝 𝑜𝑓 𝑟𝑒𝑠𝑝𝑜𝑛𝑑𝑒𝑛𝑡𝑠 / 𝑇𝑜𝑡𝑎𝑙 𝑁𝑜. 𝑜𝑓

𝑟𝑒𝑠𝑝𝑜𝑛𝑑𝑒𝑛𝑡  100 
Bar Diagrams

A bar graph is the representation of numerical data by rectangles (or bars) of equal width and
varying height. The gap between one bar and another should be uniform throughout. It can be
either horizontal or vertical. The height or length of each bar relates directly to its value.
 S.NO PARTICULAR NO.OF RESPONDENTS PERCENTAGE
1 FB CAKES 89 29.6%
2 CK BAKERY 144 47.8%
3 McRENNET 66 21.9%
4 OTHERS 02 0.7%
TOTAL 301 100

INTERPUTATION:
From the above table it is inferred that 47.8% of respondent are with CK bakery, 29.6% of
respondent