Franchise Asia APRIL 2015
Franchise Opportunities in ASIA
Franchise Opportunities in ASIA
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International Focus<br />
Choosing the Right<br />
<strong>Franchise</strong> Format<br />
By Dr. Benjamin C. Litalien, CFE<br />
The Foundations of Franchising<br />
A shopkeeper serving customers provided the catalyst for the<br />
historical roots of franchising. The realization that the only way<br />
to serve more customers was by expanding, coupled with limited<br />
capital to sustain rapid growth, led the pioneers of the franchise<br />
model to lay a solid foundation. Much of the early development<br />
of the franchise model was in the foodservice sector, with such<br />
iconic brands as A & W, Kentucky Fried Chicken and Dairy Queen<br />
leading the way. There was significant growth in the hospitality<br />
sector with Howard Johnson, Holiday Inn and Marriott using<br />
franchising to efficiently penetrate global markets and extend<br />
their brands. In all these examples the common element was the<br />
requirement for a physical premises to operate from, and many<br />
times with particular and distinguishing appearances such as the<br />
golden arches.<br />
The focus of the franchise was building an attraction for customer<br />
to visit through unique architectural themes, convenient and<br />
prominent locations and compelling signage. And, of course a set<br />
of operating procedures that would support a quality customer<br />
experience once the customer arrived at the franchise location.<br />
<strong>Franchise</strong> <strong>Asia</strong> • <strong>2015</strong> Vol 27<br />
17
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