Success and failure factors among selected Binalot Fiesta Foods, Inc.'s Franchisees

• Main Authors: Abrenica, Jasmine Mae L., Araneta, Lauren Gabrielle O., Zapanta, Kristine Ray O.
• Format: text
• Language: English
• Published: Animo Repository 2011
• Subjects: Binalot Fiesta Foods, Inc.; Restaurant management; Franchises (Retail trade) > Philippines; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/10734
• Institution: De La Salle University

This research reviews literature and articles pertaining to franchising. The study defines and analyzes the factors affecting the performance of franchise outlets, and explains the reasons behind their success or failure. The researchers chose Binalot Fiesta Foods Inc., a franchise business, as the basis for their study. In the course of the study, two propositions were formulated: (1) the franchisor-franchisee relationship, the franchisee dependence, and the franchises response to innovation will directly or greatly contribute to the franchise performance, which can be measured through the payback period, franchise turnover, and the age of the franchise outlet. (2) The location of the franchise outlet and the human capital of a franchise business indirectly influence the relationship between the independent variables and the dependent variables. The research group tested the propositions using a single-case embedded with multiple units of analysis research design. The franchisor, represented by the operations manager, and three (3) franchisees of Binalot Fiesta Foods Inc. were interviewed to gather data for the study. The said data was analyzed using cross case analysis. A franchise expert was also interviewed in order to validate the date included in the cross case table. Furthermore, the data retrieve from the expert was also used to close of the gaps concerning the different views of the franchisor and the franchisees. The results of the research have proven that franchisor-franchisee relationship, franchisee dependence, and innovation have a direct effect on the performance measures of a franchise outlet. The second proposition, however, was refuted for the research verified that both locations and human capital are also independent variables.