Franchising Assignment | Custom Essay Services

identify the challenges faced by the franchisee / franchisor and evaluate one main challenge faced by the franchise business organization and propose THREE (3) methods to overcome the challenge faced by the organization.

Challenge for Franchisor.

The franchisor, which in this case is Old Town, faces the challenge of competition which has been brought about by the entry of other franchises such as McDonald and Starbucks. These franchises such as McDonald have larger capital bases compared to the amount Old Town has. With more capital and resources, the McDonald franchise can engage in price wars with Old Town or start scaling up local operations that could diminish the returns for the Old Town.

• Increasing resources for strategy implementation

• Improving quality of products

• Targeting a niche market in Asian region

Conclusion