Franchise Organizations by Jeffrey L. Bradach

By Jeffrey L. Bradach

The franchise phenomenon is basically undocumented and poorly understood. This booklet provides a glance on the key elements that form a franchise's good fortune. utilizing examples from eating place chains, together with KFC, Pizza Hut, Hardee's, and Jack within the field, it goals to extract the components that make for a thriving company.

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In all of these cases, however, the research question was posed as one of institutional choice: which arrangement works best under what conditions? But this question overlooks the possibility that using different arrangements simultaneously might yield benefits unavailable to either one by itself. More broadly, the plural processes cast light on a phenomenon that has gained attention recently: network organizations. Prognosticators say that the future belongs to firms that can effectively manage arrangements such as joint ventures, dynamic networks (Miles and Snow 1986), strategic partnerships (Kanter 1989), global coalitions (Porter and Fuller 1986), and federations of firms (Handy 1990).

Page 9 The complementary nature of the two arrangements extended to the implementation phase, too. Company-owned units were used to demonstrate the chain's commitment to a new idea, and franchisees continued to evaluate the feasibility and desirability of the proposed change. I call this the mutual learning process. The arrows linking the growth and operating challenges boxes in Figure 1-1 highlight how chain operators actively used the growth process to influence the management of the chain, and in turn, how the management of the chain shaped the growth process.

Workforce. S. Army as the institution that trains the greatest number of American youthnearly 700,000 teenagers annually. Every three hours, a new McDonald's restaurant opens somewhere in the world. 4 billion. McDonald's is one of the thirty key stocks that compose the Dow Jones Industrial Average; it is listed on the stock exchanges in New York, Chicago, Paris, Frankfurt, Munich, Tokyo, Zurich, Geneva, and Basel. The company itself manages roughly 15 percent of its twenty thousand restaurants worldwide, leaving the remaining 85 percent in the hands of 4,500 franchisees and affiliates.

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