Gayle Genesis Laccay

BSHM-4B
FRANCHISING

Module 8

VI.LEARNING ACTIVITIES.
A. ESSAY
Instruction: In your own words, answer the following questions concisely but substantially.

1. Define and explain the meaning of international franchising.

- In my own understanding, international franchising is an arrangement involving cash or finances
that can help a business, local or international. Aside from these, it’s a method of expansion that
new or established franchises can use to move into new geographical areas and markets.
2. Enumerate and explain the types of International Franchise Models.
 Master Franchising – is agreement, a person or business who buys the rights to sell the products
or services of another company in a particular area or country.
 Regional Franchises – is an option for franchisors.
 Direct Franchising – is a franchise model where the franchisor retains control and licensing of
the franchise completely.
 Area Development – the franchisee is granted the right to open and operate multiple units
during a specified time frame.
3. What are the advantages of international franchising?
- The advantages of international franchising are International expansion by franchising
also means that the organization doesn’t have to spend time and money recruiting a full
complement of staff in the area. Using a devolved franchise model, such as master
franchising, regional franchising, and area development, you also gain the expertise of
your master or regional franchisee, who is usually local to your new country or region
and understands the market, customers, and opportunities that the business can have
in the local area. Using a devolved franchise model, such as master franchising, regional
franchising, and area development, you also gain the expertise of your master or
regional franchisee, who is usually local to your new country or region and understands
the market, customers, and opportunities that the business can have in the local area.
International franchising can be an extremely efficient and profitable way of expanding
a business overseas.
4. What are the documents needed to become an international franchise?
- The documentation for international franchises includes: the day-to-day operations of
the franchise, including adapting current operations manuals to optimize for the target
location. The financial models for both initial start-up costs and ongoing fee structures
for franchisors and franchisees Creating support structures for franchisees, including
master franchisees, that set out reporting and control processes Creating franchise
agreements that are legally binding across territories creating a development schedule
for the master franchisee or regional franchisees if required. Developing training and
development programs for franchisees Creating marketing and branding materials and
licenses that can be adapted to fit the regulations and needs of the target country or
area Creating recruitment and marketing materials for new franchisees in the area All of
the documentation leaves space and flexibility for franchisors, master franchisees, and
 franchisees to adapt and mold the way the business works in order to achieve success in
the new countries or markets.

VII. ASSIGNMENT
Instruction: Watch the videoclips entitled International Franchising - Advantages & Disadvantages. From
that video make your learning journal.
- International franchises are a system based on the Licensing of the right to duplicate a
successful business format in foreign markets. Exclusive power to distribute its products or
services in establishments equipped the same, Examples of international franchises are
MCDonald’s, KFC and Subway. The characteristics of International Franchising – the franchisee
must follow the instructions stated by the franchisor includes appearance, commercialization
and corporate image. The franchisee pays the franchisor a series of different fees for each
service (sales fee, Front-end fee, advertising fee, etc.) The two principles kinds of franchise
contracts in international markets are Direct Franchise Agreement and Master Franchise
Agreement the first one is direct contracts between franchisor or sub-franchisor and the
franchisee master it’s a franchisor that grants another parody rights to sub franchise within
given territory in International Markets relationships between the franchisor and the franchisee
are governed through an international franchise. International franchising is amazing
opportunity to expand operations, there are many factors to consider before deciding to follow
how adaptable is the business, Pros and Cons, Cultures and Legislation?

The Advantages of International Franchising

1. Allows organizations to enter overseas markets, expand their products and reach new
costumers. In a lower risk model than traditional company – owned expansion.
2. Organization does not have to spend time and money recruiting a full complement of staff in
the area and recollecting current staff or offices to the new area.
Franchise companies usually provides extensive training and support to their franchises
effort to help them succeed.
3. Take advantage of new markets that are unfamiliar with your business model.
Bring substantial profits. Creates a lot of cash for the owner.
4. Depending on where you decided to expand:
Favorable government regulation.
Save money on taxes and fees.
5. Corporate image and brand are already recognized. Consumers are generally more
comfortable purchasing items they are familiar with and working with companies that they
know and trust you.
You don’t need to worry for things like marketing and marketing recognition because it
already comes with it.

The Disadvantages of International Franchising

 Franchises can be costly to implement the fees tend to be high
 Franchisors usually require franchisees to follow their operations manually exactly how it is, in
order ensure consistency.
 Franchisees must be very good at following directions in order to maintain the image and level
or service already started.
 If the franchisor makes poor decisions or some other franchisee decrease quality and clients find
out about it, then the brand loses recognition, and is going to affect you directly.
Module 9

VI.LEARNING ACTIVITIES.
B. ESSAY
Instruction: In your own words, answer the following questions concisely but substantially.
1. What is corporate social responsibility?
- In my own understanding, corporate social responsibility is a strategy or idea in the business
that is very important so that the business knows how to plan business decisions and become
successful.
2. Is there a responsibility to prevent harm?
- Yes, I have responsibility, especially for myself or my loved ones, but it depends on the situation
because when you prevent harm, it is your responsibility to fix it. But when it comes to other
people, I don't care about them because it is their responsibility to fix the damage they are
doing. Because of this, we will learn and become independent because we know how to solve
problems.
3. Why should people be valued in an organization more than a profit?
- Because when there are no people or employees in an organization, it will not earn or have a
profit. In an organization, we must always remember that no matter how low or high your job is,
we must know how to respect, unite, and love our co-workers so that they also value us.
4. Why is the practice of the Golden Rule a necessity in Business?
- We must practice the golden rule in a business so that we know what is wrong and what we will
do right. We must follow it for the sake of the business and for our work so that we can protect
the business and our dignity.
5. Assuming that you are a franchisor, how do you entice your people to practice social responsibility
during this pandemic?
- If I’m the franchisor, of course I encourage my people to practice social responsibility by
following all the rules that are needed because it is also for them, and so that they know what
should and must be done so that they can maintain income or profit in their franchise business.

VII. ASSIGNMENT
Instruction: Make a one-page reflection about Corporate Social Responsibility & Business Ethics.

Corporate Social Responsibility

The concept of corporate social responsibility (CSR) holds that businesses should examine the social and
environmental effects of their decisions as well as how they will affect the community.

a CSR plan that is compatible with their basic beliefs and their particular position within their industry
sector. Because they are essentially supporting a business that promotes a cause they fervently believe
in, buyers should feel good about their purchase of a good CSR program in addition to the product or
service. A franchise business will attract and associate themselves with like-minded franchisees by
developing a CSR plan and fostering a particular culture.

Enhancing your interactions with regional authorities, neighborhood associations, and the general public
may also be accomplished with the aid of a sound CSR plan. There must be consistency in corporate
social responsibility.
 Business Ethics

Business ethics concerns ethical dilemmas or controversial issues faced by a company. Often, business
ethics involve a system of practices and procedures that help build trust with the consumer. On one
level, some business ethics are embedded in the law, such as minimum wages, insider trading
restrictions, and environmental regulations. On another, business ethics can be influenced by
management behavior, with wide-ranging effects across the company.

Business ethics are practices and policies that outline the way franchise owners should handle specific
issues that could be labeled as controversial. Ethical business practices for franchise owners are ensuring
leadership demonstrates proper behavior, exercising diligence about policies, worshiping positive
behavior, encouraging community involvement, practicing genuine care, and striving for fairness.

Why are ethical business practices important?

Far beyond employee loyalty, ethical business practices help franchise owners maintain a positive public
image. Business ethics enhance the law by outlining acceptable behaviors beyond government control.