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THE KEY SUCCESS FACTORS FOR ASSESSING THE FRANCHISABILITY OF FRANCHISE RESTAURANT BUSINESS
IN THAILAND
WORAWAT SRISAWASDI
A THEMATIC PAPER SUBMITTED IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF MANAGEMENT
COLLEGE OF MANAGEMENT MAHIDOL UNIVERSITY
2015
COPYRIGHT OF MAHIDOL UNIVERSITY
Thematic paper entitled
THE KEY SUCCESS FACTORS FOR ASSESSING THE FRANCHISABILITY OF FRANCHISE RESTAURANT BUSINESS
IN THAILAND
was submitted to the College of Management, Mahidol University
for the degree of Master of Management on
May 2, 2015
……………………….….…..……… Dr. Poomporn Thamsatitdej,
D.B.A. Advisor
……………………….….…..……… Assoc. Prof. Annop Tanlamai, Ph.D.
Dean College of Management
Mahidol University
……………….………….…..………
Mr. Worawat Srisawasdi Candidate
……………………….….…..……… Assoc. Prof. Vichita Ractham,
Ph.D. Chairperson
………………………………………. Asst. Prof. Randall Shannon, Ph.D.
Committee member
ii
ACKNOWLEDGEMENTS
First of all, I would like to thank Dr.Peter De Maeyer for giving me useful
ideas and advices for my paper. I also would like to thank my Franchise Management
course lecturer Ajarn Sitthichai Songatikamas for providing me with useful knowledge
about franchise businesses, which helped me complete my paper. It would not have been
possible without the guidance from both.
Furthermore, I would like to thank my parents for supporting and motivat ing
me to complete this paper. They have given me so much inspiration and support me
throughout my journey as a Master Degree student.
I also would like to thank all the branch managers that I surveyed during the
data collection process. They have given me the knowledge and insights for my
research. Without their cooperation to do the survey, I would not have been able to
complete this paper.
Finally, I would like to thank to my advisor, Dr.Poomporn Thamsatitde j,
who has been very helpful throughout the course of my journey to complete this paper.
Thank you for all your support.
Worawat Srisawasdi
iii
THE KEY SUCCESS FACTORS FOR ASSESSING THE FRANCHISABILITY
OF FRANCHISE RESTAURANT BUSINESS IN THAILAND
WORAWAT SRISAWASDI 5549293
M.M. (MARKETING AND MANAGEMENT)
THEMATIC PAPER ADVISORY COMMITTEE: DR. POOMPORN
THAMSATITDEJ, D.B.A., ASSOC. PROF. VICHITA RACHTHAM, Ph.D., ASST.
PROF. RANDALL SHANNON, Ph.D.
ABSTRACT
Due to the increasing number of franchise businesses in Thailand,
particularly Bangkok Metropolitan areas, the knowledge of running franchise business
has become more important than ever. Like many other business strategies, franchise is
a strategy for business expansion that is not applicable to all businesses. Franchise
strategy requires a business to have a proven business model, strong brand reputation,
and standard training and operating system. Currently, there are many franchise brands
in Thailand, which are both international and local. The most popular internationa l
franchise brands that we are most familiar with include KFC, McDonalds, Starbucks,
Dunkin Donuts, etc. There are also popular local franchise brands such as Seven Eleven,
Black Canyon, Daddy Dough, Chester’s, etc. The purpose of this research is to identify
the key success factors, particularly for franchise restaurant businesses, which are
critical to the success of franchise business. These key success factors will serve as a
tool to evaluate the franchisability of franchise restaurant business. In other words, the
key success factors will help businesses to determine whether franchising is suitable for
them.
KEY WORDS: Franchising Key Success Factors/ Marketing Strategy/ Restaurant
Franchise/ Franchisability Criteria
20 Pages
iv
CONTENTS
Page
ACKNOWLEDGEMENTS ii
ABSTRACT iii
LIST OF TABLES v
LIST OF FIGURES vi
CHAPTER I INTRODUCTION 1
1.1 Problem Statement 2
1.2 Research Question 2
1.3 Research Objective 2
1.4 Research Scope 2
1.5 Expected Benefits 3
CHAPTER II LITURATURE REVIEW 4
2.1 Key Success Factors for Franchising 4
2.2 Key Success Factors for Franchisability Assessment 5
CHAPTER III RESEARCH METHODOLOGY 7
CHAPTER IV RESEARCH FINDINGS & DATA INTERPRETATION 8
4.1 Descriptive Statistics Analysis 8
4.2 Extreme Response Frequency Analysis 10
4.3 Key Success Factors for
Franchisability 11
CHAPTER V RECOMMENDATION FOR PRACTICAL
USE 14
CHAPTER VI FUTURE RESEARCH 16
CHAPTER VII CONCLUSION 18
REFERENCES 19
BIOGRAPHY 20
v
LIST OF TABLES
Table Page
2.1 Summarization of Key Success Factors from literature findings 6
4.1 Extreme Response Frequency Analysis Table 11
5.1 Franchisability Criteria Evaluation Table 14
5.2 Franchisability Score Table 15
vi
LIST OF FIGURES
Figure Page
4.1 SPSS Descriptive Statistics Result 8
4.2 Descriptive Statistics results of the 10 key success factors 9
6.1 Sample AHP Diagram 17
1
CHAPTER I
INTRODUCTION
Franchising is a method of business expansion whereby a business owner
allows someone to market products or services under his name and trademark and in
accordance to his system. Business franchise is ideal for individual investors who are
looking to own and operate a business with low risks. In return, the franchisor will be
able to expand his business without having to use his own money.
Why is franchising becoming more popular in Thailand?
There are a number of reasons why franchise business is becoming more
popular in Thailand. The main reasons that contribute to this trend are as follow;
First of all, the competition among businesses in general is becoming more
intense. Due to the increasing competition among businesses, a strategy of business
expansion has become a critical method for businesses to compete with each other.
Businesses must find a way to expand their operations rapidly. Therefore, franchis ing
is a great strategy to expand the business quickly. However, a good franchise business
needs to have a strong business model that is proven to be successful and more
importantly, it must be transferable and teachable to others.
The second reason for the increasing popularity of franchising in Thailand
is that there is an increasing demand by individuals to own and invest in doing business.
With the increasing GDP per capita, Thai individuals are now more equipped with
money to invest in private business. The main key ingredient that they lack is the know-
how and the system required to run a business and franchising provide exactly the know-
how and expertise to the individual investors. With the strong business model and well-
recognized brand that the business franchisors provide, individual investors will assume
minimal risk in becoming a franchisee to operate his or her own business.
2
1.1 Problem Statement
The knowledge about franchise business has become more critical for
today’s business world. The main concern for business investors today is to know which
franchise that they should invest to become the franchisee. In order to understand and
determine what drives franchise business to success, we need to determine the key
success factors, which drive franchise business to become successful.
1.2 Research Question
What are the key success factors to determine the franchisability of
franchise restaurant business in Thailand?
1.3 Research Objective
The purpose of this paper is to determine the key success factors that
determine the franchisability of franchise restaurant business in Thailand. These key
success factors will help businesses to determine the feasibility of franchising for their
businesses. The research will explore on various academic journals and business articles
and attempt to evaluate the key success factors, which are most commonly discussed.
The data gathered from branch managers of successful franchises will serve as a sample
in analyzing the key success factors that are most important in determining the
feasibility of franchising for franchise restaurant businesses in Thailand, particularly the
Bangkok Metropolitan Area.
1.4 Research Scope
The scope of this research will primarily focus on the key success factors
for franchising franchise restaurant business. The data gathered from interviewing
people working in the franchise businesses, particularly those working in franchise
restaurant businesses in Thailand. The data will be used to analyze the key factors,
which are critical to the success of franchise business.
3
1.5 Expected Benefits
This paper will help identify the relative importance of each key success
factor that can be used to assess the franchisability of franchise restaurant in Thailand.
The prospect franchisee will be able to use the knowledge from this paper to determine
and choose the franchise businesses that are most likely to succeed. Furthermore,
business owners who are considering to expand their business through franchising will
be able to assess themselves whether or not franchising is suitable for them.
4
CHAPTER II
LITERATURE REVIEW
In business world, there are often conflicts between academic theories and
academic practice. Various academic papers define key success factors for franchis ing
in one way, while other business magazines stressed out other factors that are in different
dimensions to the key success factors defined in academic papers.
2.1 Key Success Factors for Franchising
Donald and Patrick D.Boroian, The Franchise Advantage, described eight
key success factors as follow;
1. Longevity
2. Profitability for franchisor and franchisee
3. Teachability
4. Systematization
5. Marketability
6. Transferability
7. Originality
8. Affordability
According to Cara Waters, Smart Company, there are 6 key factors that
contribute to the success of franchise;
Loyal customer base
Clear market position
Expertise of business operation
Ability to control stock at hand
Brand name establishment
Strong workforce
Nevertheless, various academic practitioners and business experts have
5
provided different views regarding what they belive to be the key success factors for
franchising. Tauber(Business Horizons Vol.24, 2001stressed out the importance of
marketing support, clear market positioning, and strong brand identity as the key success
factors of franchising.
Thompson(Journal of Economic Behavior & Organization, 1994) stated that
standardized and replicable business model is the key to success for franchise business.
A good franchise business model should be simple and transferable to others.
Tauber(Business Horizons Vol.24, 2001),Brand Franchise Extension: New
product benefits from existing Brand Names. – Edward M. Tauber - Business Horizons
Volume 24, Issue 2, stressed out the importance of Marketing support, clear position,
and Brand identity as the key success factors of franchising. On the other hand,
Anderson(Journal of Economics and Business, 1984) stressed out that profitability
management is important in the development of successful franchise business.
2.2 Key Success factors for Franchisability Assessment
Taking these findings into account, we can summarized the key success
factors into 10 critical success factors as a criteria to assess the franchisability of a
prospect franchise business as follow;
Key Success factors for Franchisability Assessment
1. Longevity: How long a business has been operating?
2. Marketability: The degree of marketing support activities of a business
3. Teachability: Can a business be taught to others
4. Positioning: Does the franchisor business have a clear position in the minds of
the general consumers?
5. Systematization: The more a business can be run in systematic order, the better
the standard.
6. Profitability: A business model should provide decent profit margin for
franchisor or franchisee.
7. Transferability: Ability to teach and transfer a business model to others
8. Originality: The unique feature of the business that differentiate itself from other
competitors
6
9. Affordability: Is the investment affordable for prospect ranchisee to invest?
10. Branding: Does the franchisor have a strong brand that is well accepted by the
market?
These key factors represent the essential key factors that are discussed in
various academic and business journals alike. The below table illustrates a
summarization of literature findings regarding the key success factors compared to the
proposed factors in this paper.
Table 2.1 Summarization of Key Success Factors from literature findings.
Fran
chis
e Fa
cto
rs &
Ref
eren
ce
Sou
rces
Wat
ers,
(Sm
art
Com
pany
, 201
4)
Tau
ber
(Bu
sin
ess
Ho
rizo
ns,
20
01
)
Thom
pson
(Jou
rnal
of
Econ
omic
Beh
avio
r &
Org
aniz
atio
n, 1
994)
Don
ald
& P
atri
ck D
. Bor
oian
(The
Fran
chis
e A
dvan
tage
, 19
87)
And
erso
n(Jo
urna
l of
Eco
nom
ics
&
Bus
ines
s, 1
984)
Pro
po
sed
Key
Su
cces
s Fa
cto
rs
Longevity ✔ ✔
Marketability ✔ ✔ ✔
Teachability ✔ ✔ ✔ ✔
Clear Positioning ✔ ✔ ✔
Systematization ✔ ✔ ✔ ✔ ✔
Profitability ✔ ✔ ✔
Transferability ✔ ✔ ✔ ✔
Originality ✔ ✔
Affordability ✔ ✔
Branding ✔ ✔ ✔
We can conclude that these 10 factors are the key factors that contribute to
the success of franchising. Thus, we can use these factors in order to assess the
franchisability of a business.
7
CHAPTER III
RESEARCH METHODLOGY
The objective of this research is to find out the key success factors that make
franchise restaurant business successful. In the literature review, the researcher went
through several academic and business journals and summarized the key factors into 10
factors, which include;
Longevity
Marketability
Teachability
Positioning
Systematization
Profitability
Transferability
Originality
Affordability
Branding
The methodology used for conducting this research is quantitative analysis
through the data gathered from surveying 30 branch managers who work in successful
and well known franchise restaurant businesses, which include KFC, McDonalds,
Chester’s Grills, and A&W. The survey questions specifically asked them to rank each
key factor for successful franchise business in terms of importance from 1 to 5, 1 being
least important and 5 being the most important.
8
CHAPTER IV
RESEARCH FINDINGS & DATA INTERPRETATION
The data is obtained from surveying 30 branch managers of successful
franchise restaurant businesses through survey questionnaire. The questionna ire
specifically asked the branch managers to evaluate the importance of the 10 key success
factors from 1 to 5, with 1 being least important and 5 being most important. The
collected data was then used in the analysis through quantitative approach. The research
focus is to obtain insights regarding the key success factors for successful restaurant
franchise businesses through quantitative analysis. Descriptive Statistics Analysis is
used to analyze the data. The following table shows the summarization of Descriptive
Statistics Analysis of the data from 30 franchise branch managers.
4.1 Discriptive Statistics Analysis
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Longevity 30 1.00 5.00 3.0333 1.12903
Marketability 30 2.00 5.00 4.0333 .76489
Teachability 30 2.00 5.00 4.2333 .85836
Positioning 30 1.00 4.00 3.5000 .68229
Systematization 30 2.00 5.00 4.5333 .77608
Profitability 30 1.00 5.00 4.3667 .88992
Transferability 30 2.00 5.00 4.1000 .80301
Originality 30 1.00 5.00 3.3667 1.03335
Affordability 30 1.00 5.00 3.7000 .83666
Branding 30 2.00 5.00 4.1667 .91287
Valid N (listwise) 30
Figure 4.1 SPSS Descriptive Statistics Result
According to the above table, it should be noted that there are 6 factors with
9
the mean score above 4, while there are 4 factors with the mean score below 4. The 6
factors with the mean above 4 include Systematization, Profitability, Teachability,
Transferability, Marketability and Branding. The factor with the highest mean is
Systematization and the factor with the lowest mean score is Longevity. Based on the
mean analysis, we can see that there is a substantial difference in average score between
Systematization and Longevity factor.
Thus, this raises a question of whether Longevity should be included as a
key success factor for franchising. Other factors with relatively low average score
include Originality and Positioning.
It should be noted that there are other statistical tools to explore the data. In
order to gain deeper insight, we will include the analysis of mean, median and mode
comparison to get further exploitation and identify the relative importance of each key
factor.
Statistics
Longevity Marketability Teachability Positioning Systematization
N Valid 30 30 30 30 30
Missing 0 0 0 0 0
Mean 3.0333 4.0333 4.2333 3.5000 4.5333
Median 3.0000 4.0000 4.0000 4.0000 5.0000
Mode 3.00 4.00 4.00a 4.00 5.00
Minimum 1.00 2.00 2.00 1.00 2.00
Maximum 5.00 5.00 5.00 4.00 5.00
Statistics
Profitability Transferability Originality Affordability Branding
N Valid 30 30 30 30 30
Missing 0 0 0 0 0
Mean 4.3667 4.1000 3.3667 3.7000 4.1667
Median 5.0000 4.0000 3.0000 4.0000 4.0000
Mode 5.00 4.00 3.00a 4.00 5.00
Minimum 1.00 2.00 1.00 1.00 2.00
Maximum 5.00 5.00 5.00 5.00 5.00
a. Multiple modes exist. The smallest value is shown
Figure 4.2 Descriptive Statistics results of the 10 key success factors
10
As we can see, the statistical mean, median and mode for each factor is shown
in the above summarized table. The key factor with highest median is Systematizat ion,
which is also a factor with highest mean. In contrast, the key factor with the lowest
median are Longevity and Originality, which also happen to be the factors with lowest
mean score as well. For the mode analysis, we can see that the key factors with the mode
of 5 are Systematization, Profitability and Branding. We can also see that the key factor
with the lowest mode of 2 is again, Longevity.
Taking these statistical results into account, we can assume that Longevity
is by far the least important key factor compared to other factors, which generally score
higher in terms of average values. We can also safely assume that Systematization is
perhaps the most important key factor to the success of franchising.
4.2 Extreme Response Frequency Analysis
To explore further in order to gain deeper insight, we will employ frequency
analysis to determine the frequency rate of extreme responses. In this case, the extreme
responses are classified into two groups; the high extreme and low extreme. The high
extreme include those who responded 5 in the questionnaire and the low extreme are
those who responded 1 and 2 in the questionnaire.
We have to include both 1 and 2 in the low extreme group because the
frequency of 1 rating is very low, therefore we have to include those who responded 1
and 2 in the low extreme group as well. On the other hand, the amount of respondents
who answered 5 are quite abundant, therefore, we can assume that those who answered
5 represent the high extreme group. The table below illustrates the frequency
distribution in the high and low extreme for each key success factor;
11
Table 4.1 Extreme Response Frequency Analysis Table
Low Extreme
Frequency
High Extreme
Frequency
High/Low
Extreme Ratio
Longevity 9 3 0.33**
Marketability 1 8 8
Teachability 2 13 6.5
Positioning 1 4 4
Systematization 1 20 20*
Profitability 1 16 16
Transferability 1 10 10
Originality 6 4 0.67
Affordability 1 4 4
Branding 1 14 14
According to the table above, we can see that the low extreme frequency,
those who responded 1 or 2, are clustered at 2 factors, which are Longevity and
Originality. On the other hand, the factor with the highest frequency on the high extreme
is Systematization, which is the factor with the highest Mean, Median and
Mode as well. The rightmost column indicates the high-to-low extreme
frequency ratio. It helps us determine which factor has the highest count of favorable
extreme responses with respect to the unfavorable extreme responses. This means that
the factor with the highest high-to-low extreme ratio can be treated as the most important
key factor in assessing the franchisability of a business.
4.3 Key Success Factors for Franchisability
Taking these analysis results into account, we can rule out some factors,
which score relatively low on average. Then, we can conclude that there are essentially
5 key factors, which are the most important factors in assessing the franchisability of
franchise restaurant business. These key factors include;
1. Systematization
2. Profitability
12
3. Teachability
4. Transferability
5. Brand Identity
Systematization
Systematization is the most important key success factor according to the
research result. A standard and reliable business system is very critical to the success of
franchise business. A good business system should allow a franchisor to monitor the
franchisee’s operation and ensure that all branches are running the operations smoothly
by the franchisees themselves on a daily basis.
Profitability
A good franchise business model should provide acceptable profit margin
and ROI for the franchisee. High profit margin and high ROI allows the franchisors to
attract prospect franchisees to invest money in their franchise brands. It also provides a
sense of security to the franchisee that they are investing in a business that will yield a
positive cash flow.
Teachability
Teachability is a factor that is very critical to the success of franchise
business. A good franchise business model should be simple and understandable by
others. This is because a franchise business requires the franchisees to have common
understanding regarding running a business. There must be a standard quality of goods
and services provided by the franchisees in order to keep the positive reputation of the
franchise business. Therefore, the first step in running standard operation is to ensure
that all franchisees understand the business concept in the same manner, so that they
can similarly run the same franchise business model no matter where the branches are
located.
Transferability
Transferability is about being able to adapt anywhere. A good franchise business
must be able to adapt to the environment no matter where its branch is located.
Successful franchise business should be able to expand into other regions and transfer
its business model into other regions successfully.
Branding
A good franchise business must have strong brand, especially in restaurant
13
business. The brand must be identifiable by the consumers. These things can be achieved
by branding management. Branding is about the process of creating a name and symbol
or logo for a business in the consumer’s mind. Nowadays, people are heavily influenced
by brands. They are more inclined to buy a product just by seeing the brand name that
they trust. Consumers often relate a strong brand with high quality product and service.
They often assume that a product with a brand of good reputation should offer high
quality of goods and service in general. Therefore, a good franchise restaurant business
should focus on building its brand to ensure that the consumers have positive perception
whenever they think of its brand. This is very important for franchise restaurant business
because people are very selective when it comes to consuming food or beverages and a
strong brand will provide a sense of trust for the consumer to choose where they will
eat.
14
CHAPTER V
RECOMMENDATION FOR PRACTICAL USE
We have identified the 5 key factors for assessing franchisability for
franchise restaurants in Thailand, which include Systematization, Profitability,
Teachability, Transferability and Branding. These key factors can be used to create a
criteria table to assess the franchisability of a business. The Franchisability Criteria
Table proposed in this research can be used as a basic tool to assess the feasibility of
franchising for a business. The table below shows the scoring model for franchisability,
which incorporates the 5 most important key success factors identified in the research.
Table 5.1 Franchisability Criteria Evaluation Table
Key Factors Your Franchise Competitor 1 Competitor 2
Systematization
Profitability
Teachability
Transferability
Branding
Total Franchisability
Score
The table above illustrates the franchisability criteria table, which can be
used to determine the franchisability score for a business compared to its competitors.
Each key factor is given a score range from 0 to 10. The evaluation criteria for each key
success factor is as follows;
Systematization: The efficiency of a business model in terms of staff training,
equipments and daily operations.
Profitability: Operating profits, gross margin, ROI
Teachability: The ability to teach a business model to others and ensure that they
understand
Transferability: The adaptability of a business to run itself the business
15
anywhere in the world
Branding: How well do people perceive the brand of a business.
The sum of the score for each key success factor will be added up to
calculate the total franchisability score of a business. The total franchisability score
indicates the likelihood of success for a franchise restaurant business. The maximum
attainable franschisability score is 50. The table below illustrates the score scale of
franchisability based on the score range;
Table 5.2 Franchisability Score Table
Franchisability Score Likelihood of Success
50-46 Very High
45-41 Moderately high
40-36 Moderate
35-31 Low
30-26 Very low
25 and below Not franchisable
This model is very simple to understand. It can be used by franchisors to
assess the franchisability score of their businesses compared to their competitors. In
contrast, franchisees can also use this scoring model as a tool to compare which
franchise business they should invest. Franchisees should be looking to invest in a
business with the highest overall franchisability score, because these businesses will
have higher chance to succeed as a franchise.
16
CHAPTER VI
FUTURE RESEARCH
There are many directions that this research can be further explored. For
example, we can go deeper in the quantitative analysis and employ more sophisticated
statistical tools such as the regression model. We can use the regression model to
determine a formula for calculating the franchisability score by using the key factors
proposed in this research as the independent variables.
Another statistical tool, which can be used to explore this research further is
the Factor Analysis. The Factor Analysis is a method primarily used for data reduction
and summarization. We can assign the key success factors as attributes and go through
the process of attribute elimination to eliminate the unnecessary factors. This will allow
us to identify the key factors, which are truly important for assessing franchisability.
We can also expand our research scope to include other types of businesses
apart from franchise restaurant. There are many industries that are suitable for
franchising strategy such as apparels, accessories, real estates, and Healthcare products
& services. We can conduct a survey on people working in these particular industr ies
and determine a different set of key success factor for each industry.
While both the regression analysis and factor analysis are impress ive
statistical tools, they often require large amount of sample in order to gain reliable
results. We need to collect at least several hundreds of samples in order to gain a large
enough sample size to run the regression analysis and factor analysis properly. It will
be a tedious amount of work, but it will definitely pay off with the reliable results, which
will help us determine the franchisability of a business in a more effective manner.
Apart from regression analysis and factor analysis, we can also implement
AHP or Analytic Hierarchy Process to explore further into the key success factors
identified in this research. AHP is essentially a mathematical technique used in research
for decision making purposes. It has broad range of practical usage from buying a family
car to choosing a leader for an organization. In this case, we can use AHP to analyze the
17
key criteria and the sub criteria with respect to the franchisability of a business.
Figure 6.1 Sample AHP Diagram
In addition to the quantitative analysis techniques, we can also explore on
an entirely different perspective, which is qualitative research. We can conduct an in-
depth interview with the branch managers that we surveyed in this research to get much
deeper insights regarding their point of views on why they believe certain key success
factors are far more important than other key success factors. This approach through
qualitative method will allow us to gain deeper understanding on the importance of each
key success factor and how they contribute to the success of franchise restaurant
businesses.
18
CHAPTER VII
CONCLUSION
The purpose of this paper is to determine the key success factors for
assessing the franchisability of franchise restaurant business. I have initially identified
10 key success factors gathered through literature reviews from various academic and
business journals. Then, after analyzing the data obtained from surveying 30 branch
managers in successful franchise restaurants through quantitative approach, we are able
to eliminate the less important key factors. According to the research results, we can
identity the 5 most important key success factors for franchise restaurant business. Thus,
we can use these key success factors as the criteria to assess the franchisability of
franchise restaurant business.
While it is very difficult to truly assess the franchisability of a business
without deep amount of data analysis, we can at least use the key success factors
proposed in this research to primarily evaluate the company’s readiness for franchis ing,
which can be used to determine the likelihood of its success in launching a franchise
business.
19
REFERENCES
Tauber, E.M., 1988. Brand Leverage: Strategy for Growth in a Cost-Controlled World.
Journal of Advertising Research, Vol.28, P26–30.
Tauber, E.M., 1981. Brand franchise extension: New products benefit from existing
brand names. Business Horizons, Vol.24, P36–41.
Thompson, 1994. The franchise life cycle and the Penrose effect. Journal of Economic
Behavior and Organization, Vol.24, P207-218.
Anderson, E.E., 1984. The growth and performance of franchise systems: Company
versus franchisee ownership. Journal of Economics and Business, Vol.36,
P421-431.
Boroian D., Boroian P. 1987. The Franchise Advantage, P46-49.
Oxenfeldt, A.R., Kelly, A.O., 1968. Will successful franchise systems ultima te ly
become wholly owned chains? Journal of Retailing Vol.44, P69–83.
Weaven, 2009. Exploring brand extension in the context of franchising. ANZMAC
2009, P1-17.
Waters, 2014. The six key success factors for franchises. SmartCompany.
http://www.smartcompany.com.au/growth/franchising/43927-the-six-key-success-
factors-for-franchises.html
12 criteria for franchisablity, Ifranchisegroup.
http://en.wikipedia.org/wiki/Analytic_hierarchy_process
http://www.ifranchisegroup.com/franchise-your-business/criteria- for- franchisability/
20
BIOGRAPHY
NAME Mr. Worawat Srisawasdi
DATE OF BIRTH 24 October 1984
PLACE OF BIRTH Lampang, Thailand
INSTITUTIONS ATTENDED Bachelor Degree in Business
Administration(International Business
Management), Chulalongkorn University,
2010
Master of Management, Mahidol
University, 2015
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Rangsit Road Laksi Bangkok 10210
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