Research topic: Factors impact on the development of franchising in Vietnam.
1. Problem statement:
Nowadays, franchising is very popular all over the world. In Vietnam, it is not a strange type of business.
Observers note that Vietnam currently has major advantages for franchise development. First, the economy has been growing steadily at 7-8 percent in recent years. Second, a young population of 83 million people is seeing living standards rise as disposable income increases.
Franchising begins in Vietnam in 2000 with Trung Nguyen coffee as a pioneer, then gradually becomes popular since 2003 until now. Viet Nam now has over 70 separate franchising ...view middle of the document...
With franchisees, they are not allowed to adjust business affairs of franchisors, everything must follow directions from franchisors such as decoration, ways of service…Besides, franchisees must report the situations about sales, periodical operations (monthly) and pay an amount of money based on the total sales every month to the franchisors, for example, on the world, this amount is from 3% to 10% of total sales every month, in Vietnam, it is just about 2% to % of total sales very month.
Due to all of the above, I decided to take a research proposal about “Factors impact on the development of franchising in Vietnam”. When I was in university, I used to choose franchising for an essay with 10 pages in length in Vietnamese language, at that time (2001-2002), only Trung Nguyen Coffee is known very well about this model, after graduating from university, I’m still interested in this topic and my future plan is to establish my own company by franchising. That’s why I will still choose this topic for my research proposal. Hope that through this research, this research can help myself and readers to understand more about this popular model. With limited knowledge about franchising, this research cannot avoid restrictions and hope to receive comments from professor so that this research can be improved in the future if I have an opportunity to come back this topic again.
|Pho 24, a popular noodle soup restaurant, is |
|offering its business partners an opportunity|
|to join a franchise system. The group offers |
|low investment, quick returns and simple |
|management procedures. — VNS Photo Truong Vi |
This paper aims at identifying some factors that impact on the development of the franchising in Vietnam so that this can help some companies in Vietnam can brave to approach this model- a model that is very convenient and easy to expand business outside the country with less expenses, less risks…After that, this paper studies the influence of these factors on the development of the franchising in Vietnam.
3. Key words:
Franchising, development of franchising, factors.
This paper concentrates on the question: What factors impacts on the development of franchising in Vietnam? And there are many hypotheses to be given about these factors. This can be culture, pricing, locations, promotion, business behavior, service, management, policies, experience….
5. Related theory:
Franchising: According to Daniel, franchising is a specialized form of licensing that originated centuries ago in which the franchisor not only sells an independent franchisee the use of intangible property (usually a trademark) essential to the franchisee’s business but also operationally assists the business on a continuing basic, such as through sales promotion and training.
II. Review of literature:
This research uses some information from website: www.infofranchise.vn....