Chương 1 đưa ra tổng quan về nhượng quyền thương mại, các loại hình và lịch sử nhượng quyền, các ngành phù hợp để nhượng quyền và lý giải vì sao các doanh nghiệp lại lựa chọn nhượng quyền để phát triển. Quan trọng hơn, các nhân tố chính quyết định thành công trong nhượng quyền thương mại đã được nêu ra và minh họa thông qua việc phân tích sự thành công của Jollibee (Philipin) Chương 2 tập trung nghiên cứu thị trường nhượng quyền thương mại tại Việt Nam, môi trường vĩ mô cho nhượng quyền, và các khó khăn mà các nhà nhượng quyền Việt Nam đang phải đối mặt. Chương này giúp chúng ta hiểu được thị trường nhượng quyền tại Việt Nam mới đang ở giai đoạn đầu và có tiềm năng phát triển rất lớn. Mặc dù có được môi trường vĩ mô thuận lợi, các doanh nghiệp Việt Nam vẫn chưa tận dụng được để phát triển hệ thống nhượng quyền thương mại của riêng mình nhằm chiếm lĩnh thị trường nội địa.
Trong chương 3, tác giả đề xuất một mô hình khung để xây dựng các hệ thống nhượng quyền thương mại tại Việt Nam. Trong đó, các công việc quan trọng và đặc trưng nhất v LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com của nhượng quyền thương mại sẽ được bàn luận chi tiết và chia thành bốn bước chiến lược chủ đạo: đánh giá ý tưởng, thử nghiệm, mở rộng và duy trì. Kết luận của nghiên cứu cho thấy các doanh nghiệp Việt Nam có cơ hội lớn trong ngành nhượng quyền thương mại, và có thể vượt qua những thách thức bằng việc áp dụng mô hình đã được tác giả đề xuất. vi LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS ACKNOWLEDGEMENT.
iv TABLE OF CONTENTS. vii LIST OF TABLES. x LIST OF FIGURES. xi LIST OF ABBREVIATIONS.
xii CHAPTER 1: FRANCHISING OVERVIEW .2 Types of Franchising .2 Business-format franchising.3 The differences between traditional franchising & business-format franchising .3 Reasons for being a franchisor.4 Industries suitable for franchising.5 Common success factors for franchising. A successful prototype location (or chain of stores). A strong management team. A distinctive and protected trade identity.
Proprietary and proven methods of operation and management. A demonstrated market demand for the product and services. Comprehensive training programs for franchisees. A set of carefully developed uniform site selection criteria and architectural standards 23 1.
A franchisee profile and screening system. An effective system of reporting and record keeping. Field support staff. Research and development capabilities.
National, regional, and local advertising, marketing, and public relations programs 25 1.6 Success factors applied to Jollibee case .2 Analyze the success of JFC by key franchising success factors. Successful prototype: Good. Management team: Excellent. Trade identity: Good.
Methods of operation and management: Good. Market demand: Excellent. Site selection criteria: Good. Franchisee screening system: Good.
Reporting and record keeping system .32 vii LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Field support staff: Good. Marketing & Advertising: Good .34 CHAPTER 2: FRANCHISING IN VIETNAM. An overview of Vietnam franchising market.
Franchising environment in Vietnam. Challenges to opening a new franchise system in Vietnam. Lack of experience. Insufficient franchising consultancy.54 CHAPTER 3: FRAMEWORK FOR BUILDING A FRANCHISE SYSTEM.
Production and distribution occur in limited geographic markets. Physical locations are helpful to serving customers. Local market knowledge is important to performance. Brand name reputation is a valuable competitive advantage.
The level of standardization and codification of the process of creating and delivering the product or service is high. The operation is labor intensive. Outlets are not terribly costly to establish. Valuable system to sell.
Large pool of potential franchisees. Density of the primary target audience. Traffic flow to the site. Complementary versus contracdictory neighbors.
Trade identity development & protection. Guidelines for preparation of the manual. Suggested outline for the operations manual of a franchisor .77 viii LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Franchise agreement preparation.
Services to be provided by the franchisor. Supplying the products. Franchise, royalty and other fees payable to franchisor and reporting. Protection of intellectual property.
Termination of the franchise agreement. Net worth requirements. External service audits. Monitoring franchisee financial reporting.
Point of sale systems .96 LIST OF REFERENCES .100 ix LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES Item Table Description Page 1.1 Main differences between 2 types of Franchising 9 1.2 Top ten industries for franchising in percent of franchisors 14 1.3 Average number of years franchisors are in operation before 17 franchising for selected industries 1.4 Average annual outlet turnover rates for selected industries 22 1.5 Portion of a sample training agenda from a restaurant franchisor 23 1.6 Average advertising fee by industry 27 2.1 Vietnam franchising market compared to other ASEAN 37 countries 2.2 Vietnam franchising in 2008 39 2.3 Franchising market size of biggest cities in ASEAN 40 2.4 Franchising business environment in Vietnam 40 2.5 New companies registered by year 43 2.6 Items required for disclosure in a UFOC 44 2.7 Annual GDP growth rate & GDP per capita of Vietnam (‘90- 46 ‘09) 2.8 Selected information depicting Vietnam infrastructure 46 2.9 Foreign franchising brands registered in Vietnam 50 3.1 Industry & concept assessment template 67 3.2 Site selection template 71 3.3 Sample operations manual outline 75 x LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES Item Figure Description Page 1.1 Franchise definition illustration 6 1.2 Percentage of franchised outlets by size of the system 11 1.3 Franchise systems with at least one active franchised unit during 11 the period of 2001-2005 1.4 Strategic options for business growth 13 1.5 Franchise systems reporting units during 2001-2005 15 1.6 Maximum total initial investment by industry 18 1.7 Average first 3 years net income for franchising concepts 19 founded 2000-2004 1.8 Sample operations manual provisions concerning garbage and 20 refuse 1.9 Purchase behavior quick screen 25 1.1 Vietnam franchising market 36 2.2 Vietnam franchise sector structure 39 2.3 Vietnam inflation rate 48 2.4 VND/USD exchange rate 48 3.1 Framework for building a franchise system 57 xi LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF ABBREVIATIONS AMACOM American Management Association ASEAN Association of Southeast Asian Nations BOTP Basic Operations Training Program CIA Central Intelligence Agency FDI Foreign Direct Investment FTC Federal Trade Commission GDP Gross Domestic Products HCMC Ho Chi Minh City KFC Kentucky Fried Chicken JFC Jollibee Foods Corporation PERC Political & Economic Risk Consulting Organization R&D Research and Development TTC Tony Tan Caktiong VND Vietnam Dong VFA Vietnam Franchising Association UFOC Uniform Franchise Offering Circular U.S United States USA United States of America USD United States Dollars USDOC United States Department of Commerce WFA World Franchising Council xii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com INTRODUCTION The emergency and objectives of the research The reform of Vietnam has been taking place totally and deeply in many fields. The event that Vietnam became the official member of the World Trade Organization (WTO) put an important mark in the integrating process into the world economy. Vietnam’s economy has grown fast, in the last twenty years GDP of Vietnam increased by over 7% on average.5 The franchising sector first came to Vietnam in early 1990s, and after 15 years, the total revenue in this sector grew 24 times, from 1.5 million USD in 1996 to 36 million USD in 2010 (estimated).6 However, the major portion of this market is dominated by foreign brands. Vietnamese companies haven’t succeeded in leveraging the local market understanding to make a successful franchise system in order to directly compete with international franchise systems in domestic market.
With the objective to contribute to finding a suitable method for developing franchise systems in Vietnam, I have chosen the topic “FRAMEWORK FOR BUILDING FRANCHISE SYSTEMS IN VIETNAM”. The objectives of the research are to: - Present an overview of franchising and provide the key franchising success factors - Provide an analysis of the franchising market in Vietnam - Recommend a master framework for Vietnamese franchisors to build their own franchise systems. 5 The CIA World Fact Book 2009 6 Vietnam Franchise Association 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Subject and scope The subject concentrates on the framework for franchise system development. In which, it will specially suggests the activities needed to develop a business-format franchise in Vietnam.
Research methodology: In the thesis, the author adopts mainly secondary research methods to domestic and foreign material sources to find out basic theories about franchising, analyze the opportunities and challenges to Vietnam franchisors, and develop the appropriate framework to build franchise systems in Vietnam. The systematical, statistical, analytical methods are also applied to analyze all collected data. The structure of the thesis The thesis is presented in three chapters in which the first chapter will give basic definitions and most general theories about the researched problem of this thesis. The second chapter will analyze the current situation of Vietnamese market and give judgements about the opportunities and challenges for Vietnamese franchisors.
The third chapter will give some recommendations about the master framework to build a franchise system in Vietnam. Chapter 1: Franchising overview The first chapter gives a general overview about franchising, types and history of franchising, industries most suitable for franchising and why people want to franchise their businesses. More importantly, the key success factors for franchisors are listed and illustrated by the case of Jollibee Food Corporation, Philippines. 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Chapter 2: Franchising in Vietnam Chapter 2 concentrates on studying the franchising market in Vietnam, the macro environment for franchising and the challenges with which Vietnamese franchisors are facing.
From this chapter, we understand that Vietnam franchising market is just at the very initial stage and has great potential for development. Despite a favorable environment, Vietnamese franchisors have not been successful in dominating the domestic market with their own systems. Chapter 3: Framework for building your own franchise In the final chapter, the author suggests a master framework for building franchise systems in Vietnam, in which the most critical and typical items related to franchise building are discussed and categorized into 4 main strategic steps: concept, pilot, expansion and mature. 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 1: FRANCHISING OVERVIEW 1.1 Franchising definition According to the American Heritage Dictionary of the English Language, the word franchise comes from the old French word franche, which means free or exempt.7 In medieval times, a franchise was a right or privilege granted by a sovereign power – king, church, or local government.
Sovereigns granted franchises for various activities, such as building roads, holding fairs, organizing markets, or for the right to maintain civil order and collect taxes. In essence, the sovereign gave an individual or group of individuals the monopoly rights over a particular activity in a particular location for a certain period of time. In most cases, the grantee was required to make a payment to the sovereign power for this right or privilege, usually in the form of a share of the product or profit. That payment was called a royalty, a term still in use to this day.
The meaning of this word is similarly reflected in many laws and definitions around the world.