CONTENTS
List of Tables ............................................................................ xi
Foreword ................................................................................. xv
Preface .................................................................................... xvii
Acknowledgments .................................................................... xix
Chapter 1. Introduction to Franchising ............................. 1
Case Study: McDonald’s: Menu Glocalization ......................... 27
Chapter 2. Impact of Hospitality Franchising
on the U.S. Economy .......................................................... 35
Case Study: Taco Bell: Beef Controversy .................................. 62
Chapter 3. Pros and Cons of Franchising .......................... 69
Case Study: Panera Bread: Customer Loyalty Programs ........... 90
Chapter 4. Franchising Agreements and
Legal Documentation ........................................................ 95
Case Study: Quiznos: Franchisees and Legal Battles................ 144
Chapter 5. Franchise Application and Franchise
Package ............................................................................. 151
Case Study: Subway: Franchise Historical and
Operational Aspects ............................................................... 176
Chapter 6. Franchisee/Franchisor/Franchise Selection .... 185
Case Study: Chick l A: A Different Type of Franchise .............. 207
Chapter 7. Standard Franchisor Services .......................... 213
Case Study: Pizza Hut: Menu and Service Innovations ............. 235
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Chapter 8. Financial Aspects of Franchising ..................... 239
Case Study: Sbarro: Financial Adjustments ............................. 264
Chapter 9. Franchisor–Franchisee Relationships .............. 269
Case Study: Wendy’s: Logo & Tagline ..................................... 298
Chapter 10. Franchise Concept Development
and Restaurant Design ..................................................... 303
Case Study: Domino’s Pizza: History and Facts ........................ 337
Chapter 11. Site Selection and Real Estate ....................... 343
Case Study: Jollibee: Going International ............................... 365
Chapter 12. Nontraditional Franchises ............................. 369
Case Study: Starbucks: Nontraditional Locations ..................... 387
Chapter 13. Communications and Public Relations .......... 391
Case Study: Bennigan’s: Rebirth and Growth .......................... 416
Chapter 14. International Franchising .............................. 421
Case Study: ALBAIK: A Successful International Concept ......... 445
Chapter 15. Going International ...................................... 451
Case Study: Chili’s: Domestic & International .......................... 481
Chapter 16. Marketing and Advertising: Managing
Brand Equity ...................................................................... 485
Case Study: Restaurant Logos ................................................. 505
Chapter 17. e-Franchising ................................................ 509
Case Study: Popeyes: Franchise Development ......................... 536
References ............................................................................... 541
List of Abbreviations ................................................................. 555
Glossary................................................................................... 557
Index ....................................................................................... 579
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Table 2.1 Top 10 Chains 1973 ............................................... 42
Table 2.2 Top 10 Chains 2013 ............................................... 42
Table 2.3 Estimated Sales Per Unit for Top 100
Restaurant Chains ................................................................. 50
Table 2.4 Growth in U.S. Franchise Units (Top 100) ................. 53
Table 2.5 Total Number of U.S. Units Company Owned
and Franchised (Top 100) ....................................................... 56
Table 3.1 Advantages of Franchising ...................................... 70
Table 3.2 Disadvantages of Franchising .................................. 71
Table 5.1 Firehouse Subs’ Application Process ........................ 160
Table 5.2 KFC’s Franchisee Application Process
and Timeline .......................................................................... 161
Table 6.1 Warning Signs of Less Credible Franchisors ............. 190
Table 6.2 Franchisee Self-Evaluation Checklist ........................ 196
Table 6.3 Franchisor Evaluation Checklist ............................... 197
Table 6.4 Franchise Restaurant Evaluation Checklist ............... 198
Table 6.5 Advice from U.S. Federal Trade Commission
to Prospective Franchisees ...................................................... 202
Table 6.6 Advice from U.S. Federal Trade Commission to
Prospective Franchisees: Questions to Ask about Initial
AND Ongoing Costs Before Selecting a Franchise ................... 203
LIST OF TABLES
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Table 6.7 Advice from U.S. Federal Trade Commission
to Prospective Franchisees: Questions to Ask about
Training Provided by the Franchisor ........................................ 204
Table 6.8 Advice from U.S. Federal Trade Commission to
Prospective Franchisees: Questions to Ask about
Advertising Fund .................................................................... 204
Table 6.9 Advice from U.S. Federal Trade Commission to
Prospective Franchisees: Questions to Ask Current and
Former Franchisees Before Selecting a Franchise .................... 205
Table 7.1 Programs and Support Services Provided by
Yum! Corporation ................................................................... 229
Table 7.2 Response to a FAQ on Sonic Drive-In Restaurant
Website .................................................................................. 231
Table 7.3 Summary of Training Programs Provided by
Different Franchise Restaurants............................................... 231
Table 8.1 Different Types of Fees ............................................ 242
Table 8.2 Estimated Sales Projection ....................................... 245
Table 8.3 Financial Projections ............................................... 245
Table 8.4 Estimated Preopening Costs for a Franchise
Restaurant ............................................................................. 246
Table 8.5 An Example of Estimated Costs for Real Estate,
Site Work, Building, and Equipment ........................................ 248
Table 8.6 An Example of Franchise Fees and
Royalty Payments .................................................................... 248
Table 9.1 Questions to Ask Prospective Franchisees ................ 272
Table 11.1 Checklist for Assessing the Site Qualities
for Franchise Restaurants ........................................................ 346
Table 11.2 Optimal Site Criteria for Yum! Restaurants............. 349
Table 11.3 Market and Site Analysis Form .............................. 350
Table 11.4 Optimal Site Criteria for Yum! Restaurants
(Pizza Hut) ............................................................................. 355
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