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Ramen Passione Build your own e-commerce site by the end of the year Challenge kitchen car next month Capture demand for nesting
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In the future, we are also considering franchise chain (FC) development.
Passione, which develops "Karamiso Ramen Owl" (Headquarters: 1-6-15, Sakae, Naka-ku, Nagoya, President Tomoo Sato, ... → Continue reading
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The Chubu Keizai Shimbun was first published in 1946 (Showa 21) and has a track record of over 70 years, and has earned the trust of many years.
Toyota Motor in the Chubu region is the only "regional economic newspaper" among the newspaper publishers that are members of the "Japan Newspaper Association"
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Wikipedia related words
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One is selfCompany name-商標Right to use, self-developedProducts(Services(Including) the right to provide, businessKnow-howEtc. (collectively theseFranchise packageProvides an image (called) that is the same as the selfbrand), And the other pays for it (royalty) Is a business contract made up of a promise to pay.
Usually, the side that provides rights, trademarks, know-how, etc.Franchisor(Headquarters, abbreviatedThe), And the receiving sideFranchisee(Members / merchants, abbreviatedGee).Many in a short period of time using external capitalChain storeFor the purpose of advancing store developmentFranchise chain(Japanglish: franchise chain,FC) Is often called.It is legally regulated by.
The essence of franchise business and franchise is a continuation relationship between headquarters and merchants to achieve common business goals through contracts on privileges, management know-how and consideration, and the essence of the franchise system is the organization that maintains this continuation relationship. Is that..If the headquarters and affiliated stores are small and medium-sized enterprises, this organization forms a corporate group with the awareness of the fate community for the market control of large enterprises, and if the headquarters is a large enterprise, the headquarters function is created in the subsidiary Form a corporate group with the aim of expanding the market.
AppliedBusiness formatasconvenience storeEtc.Retail tradeIn addition,Ramen,Box lunch,fast foodSuch asRestaurant industry,Real estateSale,AutomobileMaintenance, small size in recent yearsFitness club,Cram school,CD rentalIt covers a wide range of services such as.The characteristics of Japanese franchise organizations are that the ratio of convenience stores is high, the ratio of service industries is low, and the scale of the restaurant industry is small..
world's firstFranchise isAmericaWas born inKentucky Fried ChickenIs said to be.in Japan,1960 eraToFujiya(RestaurantandWestern confectioneryChain store for sale)Duskin(Cleaning tool rental chain store),1970 eraThen.Seven-Eleven(convenience store),Mos BurgerSuch asRestaurant industryIs developing a franchise-type business.Also,MeijiBorn in the timesSpecific post officeCan also be said to be a franchise business in a broad sense.
Not all stores with the same name are franchise stores.Since it is basic to develop a franchise based on a directly managed store that has accumulated a track record and succeeded, there are also directly managed stores and franchise stores with the same name that are visually indistinguishable.However, when franchising is carried out, the number of FC stores will increase rapidly, and the ratio will be overwhelmingly higher in FC stores than in directly managed stores.
Regarding the level of the closure rate, it is clear that the closure rate of franchise stores exceeds the closure rate of non-member stores, and the closure rate is high when territory rights are granted or when the membership fee is large. The result is low.
Retail stores and franchises
In general, directly managed stores and franchises often coexist even in stores of the same brand, but depending on the company, "the development is centered on directly managed stores, and the franchise is developed as a supplement." There are various methods of store development, such as "developing by franchise" and "basically developing by franchise except for some experimental stores".SomeCentury 21 JapanIn some cases, all stores are franchises without having any directly managed stores..
In addition, it has become possible to easily identify whether it is a directly managed store or a franchise, such as adding a mark to distinguish between a directly managed store and a franchise store on a website for general consumers, and displaying the operating company name and mark on the storefront. There are some cases, but there are many cases where such a thing is not prepared.ENEOSIn the case of gas stations, the company name and logo mark of franchisees (affiliated stores, distributors, etc.) are located near the bottom of the pole sign and the top of the store entrance.Is displayed.As another exampleJR HokkaidoとDaieiJoint ventureHokkaido JR DaieiLikeExisting Daiei storeTo distinguish fromJR DaieiThere is an example of launching another brand named.In addition, when a railroad-affiliated retail subsidiary and a major convenience store collaborate, some companies adopt a unique name that is the sum of the brands of both companies (eg, "Seven-ElevenHeart in"KintetsuStation family"etc).
In addition, open multiple stores in certain areasArea franchiseeAlso exists.For exampleSea Vs Bay AreaOriginallyCircle K ThanksIt was an area franchise in Japan and operated more than 120 stores, but the franchise agreement was terminated at the end of February 2012, and from March 2st, the following day.LawsonIt was decided to develop a convenience store business under a contract with.Also,Hokka Hokka TeiThen, it was an area franchisee in Kyushu and eastern JapanPlenusAs a result of the confrontation between the headquarters and the Plenus sideRelieve moreIn addition to the fact that more than 60% of the Hokka Hokka Tei stores that existed at that time were converted to Hotto Motto, the headquarters is also an area franchisee of Hokka Hokka Tei.HarksleyIt is under the umbrella of.
Quality of service
Strict business management is required for directly managed stores that have high risk for the headquarters, and FC stores that have low risk for the headquarters are often left to the business management by the owner, so there is a difference in service to consumers between directly managed stores and FC stores. It tends to be big.On the other hand, after several years of store workGoodwillCan be a franchisee in the form ofIchibanyaMos Burger, who interviews applicants for franchisees many times, visits other owners, and asks for a report.There are also franchisors that emphasize sharing awareness with the headquarters.
FC stores will enable franchisors to expand their businesses at low cost.AlreadylandSince member stores enter the market in the form of owning (or offering) a store property, the time and cost required for acquisition can be significantly reduced.Therefore, it is adopted in various industries as a method for rapidly expanding new businesses and establishing a brand.Stable income after franchise developmentroyaltyHas the advantage of being expected.
For franchisees, from opening to practiceBusiness OfKnow-howCan be worn in a relatively short period of time and easily.Moreover, the franchisor's brand power and marketing power have the advantage that stable management can be expected from the initial stage.For this reason, franchises tend to be selected by people with no industry experience or full-time employees who have worked in large companies...In addition, only industry experience has a significant impact on the performance of franchise member companies, and franchise membership makes up for the lack of management resources of practitioners and contributes to smooth business start-up..
For franchisors, FC development requires a large number of store management, so the quality of each franchisee may vary, products may not be provided as planned, and their brand image may be damaged.riskAccompanied by..In addition, since franchisees are businesses that do not have a direct capital relationship, even if the headquarters determines that there is a problem with management,ManagementCannot be replaced or made a strong improvement.
For franchisees as well, in addition to know-how, store structures must be created under the direction of the headquarters.Regarding the appearance etc., there is no problem if you request the construction according to the specifications from the local contractor,furnitureEquipment is often more expensive than the prevailing price, as it often has to be purchased from headquarters.As a result, in most cases, the funds required to start a business are larger than those required to start a business independently, including membership fees.
In the sales / restaurant business, materials are often purchased from the headquarters, which tends to be expensive.For example, if a coffee shop in the same industry becomes a franchisee, until thenBakeryPurchased from a local contractor with a departmentsandwichEven if it is a menu with a high profit margin that suits the regional characteristics, it will not be possible to provide such items.In addition to this, it is difficult to demonstrate the originality of the owner due to some restrictions in distribution and business development, such as prohibiting the method of reducing the price of products whose expiration date is approaching and preventing disposal at their own discretion. ..In addition, even if there is a problem with marketing, location conditions, management policy, etc. by such headquarters, the franchisee will bear the risk.It depends on the contents of the contract, but as a general rule, you must continue to pay royalties even if you are in the red.
For the above reasons, franchisee chains with franchisees are far less profitable than regular franchisor chains.As a specific example,DaieiWenco Japan, which was under the umbrella of the group, can be mentioned.This company is "Wendy's"Franchisee" and at the same time, "in the same industry."Dom DomIt was also a franchisor.The franchisee contract has a store opening target, and in order to achieve this, it was also done to close "Dom Dom" and open "Wendy's" in the same place, but the profitability of the franchisor and franchisee Due to the difference, store management deteriorated (Wendy'sSee also).Currently, the Daiei Group has given up "Wendy's" but still owns "Dom Dom".
Other than the drawbacks created by the characteristics of franchise development, the problem is that the franchisor side puts "management stability", "high income" and "low risk" in the foreground, and is cautious about marketing and risks to prospective members. The point is that the explanation is not given properly.As a result, there are quite a few franchise owners who are going out of business with large debts, but not only the problems on the franchisor side, but also the fact that the franchisees started the business without acquiring sufficient knowledge about business risks. It may be the cause.
Restitution for DamagesIn some cases, the number of business owners seeking a lawsuit has increased and a lawsuit has been filed. "The franchisor knew that the business was unlikely to succeed, but signed a franchise agreement without telling it," he said in a trial.FraudSuch asCriminal casenotCivil actionBecause it is oftenCivil law,Commercial lawJudgments are often made according to only.Currently Japan has no special legislation to protect franchisees, so it tends to favor contract-based franchisors.For this reason, franchisors targeting individual business owners who do not have sufficient know-how about store management and franchise development, or fraudulent acts aimed at deceiving membership fees have also emerged.
Also, of franchisee employeesDeath from overworkMay become a problem and a proceeding may be filed...Differences in franchisor and franchisor management policies can create conflicts,Seven-ElevenThen, the confrontation with the franchisee, which had closed its own business at midnight, surfaced and developed into a litigation issue over the cancellation of the franchise agreement...In addition, by opening a franchisor's directly managed store near a franchisee's profitable store, the franchisor can expand the store with low risk.This competition between franchisors and franchisees can be a problem.
A major company that develops stores mainly in franchises in Japan
- Yamada Denki(Cosmos Belize-Best electric appliances）
- Book off
- Wonder Goo
- AUTOBACS Seven
- Kobe Bussan(Business supermarket)
- Japan McDonald's
- Kentucky Fried Chicken
- Sofuren(Fried noodles）
- Doutor coffee
- Yoro no Taki
- Moss food service
- JR East Food Business
- Starbucks(Started in 2008)
- Shortcrust pastry
- Honke Kamadoya
- Priest sushi(In the past, it was actively developed as a "Kozosushi chain" and aired commercials.)
real estate business
- Meiko Gijuku
- Nagase(Toshin Satellite Preparatory School)
- Japan Kumon Education Study Group
- ECC integrated educational institution
- COCO Juku
- Gakken Holdings
- Try group
- Disney Parks Experience Products --Disney's amusement park directly managed and franchisor.Tokyo Disney Resort TheOriental landIs a franchisee.
- National FC Membership Association
- Japan Franchise Association
- Voluntary chain
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- ^ "What is the franchise WEB report "Franchisee"?”. Dai. 2018/5/25Browse.
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- ^ Keiteru Omoto "Impact of franchise agreements on merchant closures"Distribution Research," Vol. 8, No. 3, Japan Society of Commerce, 2006, pp. 1-15, two:10.5844 / jsmd.8.3_1, ISSN 1345-9015.
- ^ System introduction Century 21 Japan, viewed August 2015, 8.
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- ^ Mos Burger, why are you doing well?The secret of product power and FC store power that separates the light and dark from Mac (2nd page) Business Journal, July 2014, 2 (viewed March 16, 2015).
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- ^ "3. XNUMX.Franchise system features (merits and demerits) | JFA Franchise Guide". fc-g.jfa-fc.or.jp. 2020/5/9Browse.
- ^ Death from overwork Famima admits reconciliation over 200 hours a month overtime Mainichi Newspaper March 2016, 12
- ^ "Seven, cancellation of contract of short-time store Is it exclusion of owners who talk?”(Japanese). Tokyo Shimbun TOKYO Web. 2020/5/9Browse.
- ^ "Seven to cancel contract with Higashi Osaka's short-time store owner "Complaints to customer service"”(Japanese). Nikkei newspaper electronic version. 2020/5/9Browse.