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    Franchise in Vietnam - Finished

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    Group 2: Nguyễn Thị Thanh Ngân Đoàn Giang Sơn Nguyễn Minh Quân Phạm Ngọc Diễm Trần Thuận Tân Trần Ngọc Oanh Nguyễn Đăng Hạt Lecturer: Dr. Chris Quach The document defines franchise as a business arrangement where a franchisor allows a franchisee to use its brand name and business model in exchange for fees and royalties. It discusses the types of franchises and how franchising works. The document then analyzes

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    Franchise in Vietnam - Finished

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    Lữ Nhớ
    97 views20 pages
    Group 2: Nguyễn Thị Thanh Ngân Đoàn Giang Sơn Nguyễn Minh Quân Phạm Ngọc Diễm Trần Thuận Tân Trần Ngọc Oanh Nguyễn Đăng Hạt Lecturer: Dr. Chris Quach The document defines franchise as a business arrangement where a franchisor allows a franchisee to use its brand name and business model in exchange for fees and royalties. It discusses the types of franchises and how franchising works. The document then analyzes

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    Franchise in Vietnam -Finished

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    Group 2: Nguyễn Thị Thanh Ngân Đoàn Giang Sơn Nguyễn Minh Quân Phạm Ngọc Diễm Trần Thuận Tân Trần Ngọc Oanh Nguyễn Đăng Hạt Lecturer: Dr. Chris Quach The document defines franchise as a business arrangement where a franchisor allows a franchisee to use its brand name and business model in exchange for fees and royalties. It discusses the types of franchises and how franchising works. The document then analyzes

    Copyright:

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    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    97 views20 pages

    Franchise in Vietnam - Finished

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    Lữ Nhớ
    Group 2: Nguyễn Thị Thanh Ngân Đoàn Giang Sơn Nguyễn Minh Quân Phạm Ngọc Diễm Trần Thuận Tân Trần Ngọc Oanh Nguyễn Đăng Hạt Lecturer: Dr. Chris Quach The document defines franchise as a business arrangement where a franchisor allows a franchisee to use its brand name and business model in exchange for fees and royalties. It discusses the types of franchises and how franchising works. The document then analyzes

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    Group 2: Nguyn Th Thanh Ngn on Giang Sn Nguyn Minh Qun Phm Ngc Dim Trn Thun Tn Trn Ngc

    Oanh Nguyn ng Ht

    Lecturer: Dr. Chris Quach

    General information about Franchise

    II
    II

    Franchise in Vietnam
    Recommendation for Franchise in VN

    outline
    2

    I.General information about Franchise What is a franchise?


    A form of business organization in which a firm which already has a successful product or service (the franchisor) enters into a continuing contractual relationship with other businesses (franchisees) operating under the franchisor's trade name and usually with the franchisor's guidance, in exchange for a fee.

    Types of franchises
    There are THREE basic types 1. Product Franchises: distribute goods and use name & trademark 2. Business Format Franchising: a proven method provided for operating business
    3.

    Manufacturing Franchise: right to manufacture product and sell to public

    Thinking about buying into a franchise system

    How Franchising Works


    How franchising works
    What fees are involved What is expected of you from the franchise company

    Buyer: A FRANCHISEE ============== Seller : FRANCHISOR The franchisee must follow certain: - Rules and guidelines already established by the franchisor - Pay an ongoing franchise royalty fee Franchising has become one of the most popular ways of doing business in today's marketplace 5

    ADVANTAGES
    Franchisor: good opportunity to market products in new markets with considerable cost & licenses fee Franchisee: benefit from brand name and business model that take long time to build up Customers: services and goods brought nearer to them

    Franchisor: risk of having reputation ruined by incompetent franchisees Franchisee: in a precarious position in the event of a dispute cause the agreements are highly skewed in favor of the franchisers

    RISKS
    7

    CHOOSING A FRANCHISE OPPORTUNITIES


    1. 2.

    Market Trend Territory Coverage

    3.
    4. 5.

    Company Support
    Exit Strategy Franchise Business Plan
    8

    II. Franchise in Vietnam


    1. Overview of Franchise in VN

    Multinational Companies

    Domestic firms

    According to the countrys Ministry of Industry and Trade, up to 70 foreign brands have registered their franchising business in Vietnam and franchising growth is up 30%.
    10

    Compared to other Asian nations

    Flat but potential for international franchisers due to difficult market conditions

    9 6
    VIETNAM

    >10 00
    PHILIPPINE

    >26 00
    CHINA
    11

    Government support
    The 2005 Commercial Law

    Government Decree 35 of 2006 Circular 09 of the Ministry of Industry and Trade of 2006 Decision 106 of the Ministry of Finance of 2006.

    12

    SWOT ANALYSIS of FRANCHISE


    13

    STRENGTHS
    It is new & potential Vietnamese regulation for franchise effected on 2005 Government open doors for 100% foreign companies Other factors : fast growth, mass young consumers, higher average of income

    14

    WEAKNESSES
    Inconsistency and overlapping on regulations of franchise Most of domestic firms are lack of franchising experience or knowledge Some franchising agents are not united (inconsistency in designs, decorations, business concept, taste...)

    15

    16

    17

    OPPORTUNITIES
    Domestic demand for food and drinks from foreign increases-> franchising is predicted to
    grow 50% on 2014 Potential to broaden franchise in other industries Domestic firms join into franchise market more and more -> Franchise activities get hotter

    18

    THREATS
    Domination of foreign companies in franchise network Franchisors can lose their brand if the franchisees follow exactly instruction and obligations of franchisors

    19

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