Are Franchises Bad Employers?

Franchise jobs are often described as representing the epitome of the "low road" approach to managing employees: high turnover, little training, deskilled jobs, and little employee involvement, practices often seen as unsophisticated. Research on franchise operations suggests, however, that the basic operating principles and practices of franchises tend to be more sophisticated than those of equivalent independent operators. We might therefore expect their employee management practices to be more advanced as well, challenging the stereotype of franchise jobs. We use data from a national probability sample of establishments to examine the relationship between franchise status and employment practices. While descriptive statistics suggest that franchise operations use low road practices, once industry, size, and other control variables are included in the analysis, franchise operations appear on important dimensions to offer better jobs with more sophisticated systems of employee management than similar non-franchise operations.

Franchising Model for Expansion of the International Travel Business

The hotel sector of the travel industry is the leader according to the indicator of economic growth, which is observed in both developed and developing countries. Even under the economic instability and global natural disasters, the industry has seen growth in recent years. The franchising model for expanding activities is central to all successful hotel chains. The article deals with the franchising model for the travel business expansion and the economic performance of hotel chains such as Marriott International, Wyndham Hotels, and Hilton. They hold a prominent place in the global hotel business, have a steady tendency to expand their business, hold high positions in the ranking of the best franchises in the world and have been recognized by experts. The main risks for the franchisor and franchisee are determined when making a decision on the expansion of the international travel business, which must be taken into account when developing new markets for hotel chains. The main advantages of the franchising model of expansion, which promote understanding between the parties of the franchise agreement, dynamicize hotel chains expansion and allow for reducing their expenses and increasing incomes. It was found that the growth of net profit and total income in the indicated hotel chains was due to the increase in the number of rooms in franchising and the positive dynamics of franchise income. A more dynamic pace occurred after the crisis growth in revenues from the franchisee compared with the managerial model. A closer relationship between revenues and key financial indicators has been proved when using a franchising model

Disagreeing Over Agreements: A Cross-Sectional Analysis of No-Poaching Agreements in the Franchise Sector

In October 2016, the Department of Justice Antitrust Division announced its intent to proceed criminally against parties to no-poaching agreements, or agreements between or among employers not to hire each other’s workers. Consequently, a wave of class action antitrust lawsuits has raised questions about the legality of no-poaching or no-hire provisions that certain franchised food businesses use. Fast-food restaurant chains, including McDonald’s, Carl’s Jr., and Pizza Hut, have recently found themselves embroiled in such litigation. This Note examines prior antitrust litigation involving no-poaching agreements between companies and discusses the differences and similarities between these cases and the cases involving franchised businesses. In analyzing the key issues that courts must confront to resolve current and future cases specific to franchises, this Note proposes that courts should employ a per se rule against no-poaching agreements among franchisors and franchisees

Franchising: A literature review on management and control issues.

Franchising; Literature review; Management control;

Critical success factors of a fast food franchise system entering the Kenyan market

ArticleThe fast food industry has become an important part of globalization as people spend many hours working or doing business. The need for quick food services has grown with apparent shortage of free time. With reduced disposable income, a consequence of the global economic downturn, customers seem to shift from the fine dining and full service restaurants to quick service or fast food outlets since the latter are more cost effective. However, a widespread exposure to goods and services has produced a highly informed clientele, the fast food customer expectations seem to grow and follow global patterns. In Kenya international fast food franchises have not done well, fast food franchise systems enter the market but after a number of years they exit or close down operations. On the other hand there is an apparent increase of the ‘eating out trend’ among the Kenyan urban population in keeping with the global trends. It is therefore necessary to establish why the franchises enter the Kenyan market and then close down. This study will determine the critical success factors (CSFs) of franchise systems entering the Kenyan (and East African) market.The fast food industry has become an important part of globalization as people spend many hours working or doing business. The need for quick food services has grown with apparent shortage of free time. With reduced disposable income, a consequence of the global economic downturn, customers seem to shift from the fine dining and full service restaurants to quick service or fast food outlets since the latter are more cost effective. However, a widespread exposure to goods and services has produced a highly informed clientele, the fast food customer expectations seem to grow and follow global patterns. In Kenya international fast food franchises have not done well, fast food franchise systems enter the market but after a number of years they exit or close down operations. On the other hand there is an apparent increase of the ‘eating out trend’ among the Kenyan urban population in keeping with the global trends. It is therefore necessary to establish why the franchises enter the Kenyan market and then close down. This study will determine the critical success factors (CSFs) of franchise systems entering the Kenyan (and East African) market

Beach Hut Deli Case Study

Beach Hut Deli Case Study describes the origin, development and growth of a quick service restaurant in Granite Bay, CA, which has now expanded to 35 locations in California, Reno, and Las Vegas with plans to expand into the Pacific Northwest. The case discusses in-house and external marketing, menu development and franchising options and issues

Globalization, Health and the Nutrition Transition: How Global TNCs are Changing Local Food Consumption Patterns

Food consumption patterns around the world are changing. In general, individuals around the globe are consuming more edible oils and sugars than they were twenty years ago. What has lead to this nutrition transition? Scholars have identified a range of mechanisms associated with the transition, but nearly all are related to the growing influence of transnational corporations on the global food system. These TNCs are the lead actors in most global food production systems, dictating what is produced, how it is processed, where it is sold and the desirability of food products to global consumers. Looking at these TNCs through the lens of global value chain analysis can begin to shed light on the global and local interactions that are contributing to changing food consumption patterns. These TNCs have come to dominate the global food value chain by operating globally to promote efficiency as well as locally to take advantage of regional preferences. A global value chain perspective highlights the role of TNCs in increasing the availability, affordability and desirability of diets higher in fat and sugar in Malaysia. These diets are scientifically linked to a higher risk for noncommunicable diseases such as obesity, diabetes and cardiovascular disease and Malaysia has experienced rising rates of noncommunicable disease. Because developing nations do not have the financial or medical capacity to deal with these rising rates of noncommunicable disease, the nutrition transition could lead to a global public health crisis. To avoid this kind of crisis, future GVC research should identify intervention points in global food value chains that can reverse this trend and encourage global TNCs to positively influence local diets in the future

Organizational Effectiveness Along Life-Cycle Stages: A Comparison Of Wendy\u27s And McDonald\u27s

Perceptions of Organizational Effectiveness over Organizational Life Cycles written by Kim S. Cameron and David S. Whetten, posits a theory regarding organizational effectiveness criteria change as firms develop along the life cycle continuum. Induced from observations obtained from a simulation game, the Cameron and Whetten theory is applied in this article to two real organizations, Wendy\u27s and McDonald\u27s, with the intention of demonstrating that this theory is applicable in real life situations