Rini Mam Notes

7/28/2019 Rini Mam Notes

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Franchising is a way of doing business. It is a method and marketing tool for companies to expand

their market share more rapidly and less expensively.

Some companies, which are thought to franchises, are in fact not franchises. All stores are owned

and operated by the company itself (ex. Starbucks, Gap, Victoria's Secret).

There are three basic types of franchises:

1. Distributorships, which grant the right to sell their parent company's product(s) such as autodealerships (Toyota, Ford, GM, Mercedes, etc).

2. Trademark or brand name licensing, which gives the licensees the right to use the parentcompany's trademark or brand in conjunction with the operation of their own business ie.

beverages (CocaCola) and sport franchises (Miami Dolphins, New York Yankees, etc).

3. Business format franchises, the type most people are familiar with (Subway, MeinekeMuffler, Circle K) are the focus of this article.

1.Business Format Franchise Structure

The most common type of franchise structure is the business format franchise.

In this type of franchise, the franchisee is buying the right to more than just

producing and distributing a franchisor's product as in the manufacturer type

of franchise, and more than simply selling a franchisor's product as in the

product type of franchise. Instead, entrepreneurs who choose the franchise

business format are really purchasing the franchisor's strategic business

operation model, which has proven to be effective; and the right to

produce, distribute and/or sell the franchisor's goods and/or services comes

along with that purchase.

2.Single-Unit Franchise Ownership

As stated earlier, types of franchises are categorized not only by the structure

but also by ownership. The most common type of franchise ownership is one

that is offered as a single-unit franchise. This type of franchisee purchases the

right to own and operate one franchise location. Most entrepreneurs who

invest in a franchise---whether as a business format franchisee, a product

franchisee or a manufacturer franchisee---buy into the franchise as this type

of franchise owner.

3.Multi-Unit & Area Development Franchise Ownership

Aggressive or experienced franchisees may opt for a more involved type of

franchise ownership such as multi-unit franchise ownership or area

development franchise ownership. The two types of franchise ownership

types are similar in that the franchise owner has more to manage than a

single-unit franchise owner and they differ only in how and what is managed.


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The multi-unit franchise owner manages multiple franchise locations while the

area development franchise owner typically owns a single franchise that has

the right to do business across a vast area---multiple cities or states, for

instance.

Business format franchisors offer to their franchisees the license or right to sell its goods or services

and/or use its business techniques. The franchisees usually pay an initial fee to acquire this right, andthereafter pay a percentage of their gross sales to the franchisor throughout the term of their

franchise contract.

In return for these payments, franchisees gain priveleges, including the right to sell a proven and

recognized product or service, to use the franchisor's business practices, and to receive initial

training and ongoing support. Additonal responsibilities can and usually do include:

1. Requirements to meet a variety of quality controls for products and services sold.2. Restrictions on what they can sell or how they can operate using the company's name.3. Specifications for their business location and site appearance.4. Prohibitions on the operation of any similar businesses during or after the term of the

franchise agreement.

Franchisees usually have an advantage over their nonfranchisee

competitors, since they have the rights to use the franchisor's:

1. Brand names, trademarks, copyrights, trade secrets, and patents.2. Uniform logos, storefronts, and interiors.

By following the franchisor's business practices and offering products that

meet the company's standards, franchisees can consistently provide

customers with quality goods and services. In the United States the Federal

Trade Commission (FTC) and certain states can decide if a franchise is

acting as a franchisor. If so, they regulate the activities of the franchisor, as

to marketing and sales, and distribution of required disclosure information

(Offering Circular aka UFOC) about the franchise to prospective purchasers. Certain other countries

have similar regulations. Research has shown that the success rate of new franchisees is much higher

than that for other new business start-ups.

Ever wonder how franchisees interact with their franchisor? Most franchises choose one of two ways for

providing sales and support services to franchisees: directly by the franchise company to the individual

franchisees (known as direct franchising) or via a master franchisee.

If the franchise is expanding via master franchisees, it means they've contracted with a person or entity

to provide services to franchisees in a specified territory (typically a major market or even one or more


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states). The master franchisee typically pays the franchise company a significant initial feefor the rights to develop the territory and then retains most or all the initial fees and royalty fees paid over

time by the individual franchisees in the territory.

That master is usually responsible for recruiting the individual franchisees and providing all training and

support they need, both initially and on an ongoing basis. Franchise companies often select the master

approach in the belief it will result in more rapid system growth with less initial capital risk for the

company.

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A master franchise is a franchising contract in which the master franchisor(the owner of the brandname) hands over the control of the franchising activities in a specified territory to a person or entity,called the "master franchisee".

[1]Master franchising is a method that has been employed by most

franchise systems. The operational efficiency of these systems, with their distinctly complex

organizational form, benefits from increased growth rates of the subfranchises.

Contents

1Business model

2Drawbacks

3Examples

4References

Business modelIn general, a franchise enables a product to be dispersed across more outlets and regions, solving

many geographic concerns raised by large market companies. In doing so, it allows the company toretain the economies of a large chain, while allowing for the meticulous management of

geographically dispersed individual stores.

Generally, a master franchisor will grant the master franchisee, or subfranchisor, the right to third-

party operations within a defined territory. And then, with respect to regional issues, the

subfranchisor will assume the role of the franchisor, but they typically will not own or operate the

franchise. They are removed from a direct management position. This duplication of the franchisor's

role forms an additional layer of control in the general franchise system, which results in some smallscale inefficiencies on the small, local scale but greatly reduces the large scale inefficiencies.

Additionally, a master franchise allows the company holding the franchising permit to benefit from

management talent and more and more accessible capital.

Combined, these two factors translate into almost instant penetration into the market and acompetitive advantage, both of which increase system growth rates. Managerial levels and

hierarchical framework exemplify one competitive advantage. By allowing the franchisor to

specialize in recruiting, screening and training of subfranchisors, who then develop their area in asimilar way, the overall growth rate of chains increases.

[2]Other benefits include faster development,
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a more comprehensive financial base, specific expansion plans, access to capital and a regular cash

flow, proximity to the customer, some independence, and the ability to address the demands of the

customers as well as address the local competition.

Drawbacks

Although master franchising can be beneficial and advantageous, there are also setbacks, including

legal problems and overly long contracts. One specific setback of master franchises is that the

increase in agency costs. Franchise agreements are needed to codify the enforcement of behavior.

But, because all aspects of the franchise cannot be predicted, this requirement raises the opportunityfor franchise shirking while reducing the overall ability to monitor all aspects of the franchise. Thus,

some scholars hypothesize that "new franchise systems which employ master franchising are more

likely to fail than are other new franchise systems."[3]

Examples

Generally, master franchises are the organizational structure for domestic cleaners, fast foodrestaurants, computer equipment, real estate agencies, and convenience food stores.

[4]

franchisor

Definition

The company that allows an individual (known as the franchisee) to run a location of theirbusiness.

The franchisorowns the overarching company, trademarks, and products, but gives the right to the franchisee to

run the franchise location, in return for an agreed-upon fee. Fast-food companies are often franchised

A franchisor is a company that sells the right to use its name and/or operating systems to independent

business owners. One of the best known franchisors is McDonald's.

What is a Franchisor?

A Franchisor's role is to recruit new Franchisees, choosing only those who show clear signs of future success. They must

then provide ongoing support including advertising for work, regular meetings, and a one-on-one business coaching

relationship. At the very least this means phoning each Franchisee once a month, providing real and meaningful help to

improve their business.
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Franchisors are commonly successful Franchisees. If not, they are expected to become skilled and experienced in the

Division so that they can provide meaningful support. Working in the field also provides an extra income until the number

of Franchisees has grown enough to provide a full time living.

Franchisors are recruited by the Divisional Franchisor of their Division (Mowing, Cleaning etc.), and go through a careful

screening at Divisional and national level.

Franchisors should not be involved in any other Division, business or job. To be effective means focusing 100% on the

success of their Franchisees and their business

Definition ofFranchisingFranchising is a long-term cooperative relationshipbetween two entitiesa franchisor and one or morefranchiseesthat is based on an agreement in which thefranchisor provides a licensed privilege to the franchiseeto do business. The franchisor grants the franchisee the right to use a developed concept, includingtrademarks and brand names, production, service and marketing methods and the entire businessoperation model, for a fee. The franchisee then provides the time, capital, and desire to utilize the brand

and services provided by the franchisor to build a thriving business.

The product, method or service being marketed is usually identified by the franchisor's brand name, andthe holder of the privilege (franchisee) is often given exclusive access to a defined geographical area for adefined period of time, all of which is defined in the Franchise Agreement.

FranchiseA privilege or right officially granted to offer specific products or services under explicit guidelines at acertain location for a declared period of time.

Franchise AgreementThe legal document between the Franchisor and the Franchisee that governs the relationship between the

two entities for a specified period of time. It frames the relationship in a concise manner.

FranchiseeA person or entity to whom the right to conduct a business is granted by the franchisor or licensor.

FranchisorThe company owning/controlling the rights to grant franchises to potential franchisees.

Start-up with fewer risks
http://www.franchoice.com/franchise-consulting-request?origin=home&destination=consultGlobal


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The main attraction of a franchiseis that it is a comparatively risk-free way to launch anidea. If you want to run your own business but don't have a business concept, franchising may be foryou. Other advantages include:

The business already has a track record and any teething problems should already have been sorted

out;

The suppliers are in place and customers identified;

You can use recognisable brand names and benefit from advertising campaigns;

The best franshisors offer training - particularly in sales;

Banks are usually more willing to lend to a business that is part of an established franchise;

Your franchisor should be able to pass on discounts such as bulk-buys;

RETAIL

The role of the store is changing from being about the transaction, to being about the interaction. By

focusing on the interaction, retailers can create an emotional connection between customers and

brands or products. Understanding that purchase decisions are based on emotion is the foundation

for many current trends in retail.Retail is the sale of goods and services from individuals or businesses to the end-user. Retailers arepart of an integrated system called the supply chain. A retailer purchases goods orproducts in large

quantities from manufacturers directly or through a wholesale, and then sells smaller quantities tothe consumerfor a profit. Retailing can be done in either fixed locations like stores or markets, door-

to-dooror by delivery. Retailing includes subordinated services, such as delivery. The term "retailer"

is also applied where a service provider services the needs of a large number of individuals, such as

a public. Shops may be on residential streets, streets with few or no houses or in a shopping mall.

Shopping streets may be forpedestrians only. Sometimes a shopping street has a partial or full roofto protect customers from precipitation. Online retailing, a type ofelectronic commerce used for

business-to-consumer(B2C) transactions and mail order, are forms of non-shop retailing.

Shopping generally refers to the act ofbuyingproducts. Sometimes this is done to obtain necessities

such as food and clothing; sometimes it is done as a recreational activity. Recreational shoppingoften involves window shopping (just looking, not buying) and browsing and does not always result

in a purchase.
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Types of retail outlets

San Juan de Dios Market in Guadalajara, Jalisco

Inside a supermarket in Russia

Walnut Market in Katra, Jammu & Kashmir, India

A marketplace is a location where goods and services are exchanged. The traditional market squareis acity squarewhere traders set up stalls and buyers browse the merchandise. This kind of market is

very old, and countless such markets are still in operation around the whole world.

In some parts of the world, the retail business is still dominated by small family-run stores, but this

market is increasingly being taken over by largeretail chains.

Retail is usually classified by type of products as follows:

Food products
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Hard goods or durable goods ("hardline retailers") - appliances, electronics, furniture, sporting

goods, etc. Goods that do not quickly wear out and provide utility over time.

Soft goods or consumables - clothing, apparel, and other fabrics. Goods that are consumed after one

use or have a limited period (typically under three years) in which you may use them.

There are the following types of retailers by marketing strategy:

Department stores - very large stores offering a huge assortment of "soft" and "hard goods; often

bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of

categories and has broad assortment at average price. They offer considerable customer service.

Discount stores - tend to offer a wide array of products and services, but they compete mainly on

price offers extensive assortment of merchandise at affordable and cut-rate prices. Normally

retailers sell less fashion-oriented brands.

Warehouse stores - warehouses that offer low-cost, often high-quantity goods piled on pallets or

steel shelves;warehouse clubscharge a membership fee;

Variety stores - these offer extremely low-cost goods, with limited selection;

Demographic - retailers that aim at one particular segment (e.g., high-end retailers focusing on

wealthy individuals). Mom-And-Pop : is a retail outlet that is owned and operated by individuals. The range of products

are very selective and few in numbers. These stores are seen in local community often are family-

run businesses. The square feet area of the store depends on the store holder.

Specialty stores: A typical speciality store gives attention to a particular category and provides high

level of service to the customers. A pet store that specializes in selling dog food would be regarded

as a specialty store. However, branded stores also come under this format. For example if a

customer visits a Reebok or Gap store then they find just Reebok and Gap products in the respective

stores.

General store - a rural store that supplies the main needs for the local community;

Convenience stores: is essentially found in residential areas. They provide limited amount of

merchandise at more than average prices with a speedy checkout. This store is ideal for emergencyand immediate purchases as it often works with extended hours, stocking everyday;

Hypermarkets: provides variety and huge volumes of exclusive merchandise at low margins. The

operating cost is comparatively less than other retail formats.

Supermarkets: is a self-service store consisting mainly of grocery and limited products on non food

items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere

between 20,000 and 40,000 square feet (3,700 m2). Example: SPAR supermarket.

Malls: has a range of retail shops at a single outlet. They endow with products, food and

entertainment under a roof.

Category killers or Category Specialist: By supplying wide assortment in a single category for lower

prices a retailer can "kill" that category for other retailers. For few categories, such as electronics,

the products are displayed at the centre of the store and sales person will be available to address

customer queries and give suggestions when required. Other retail format stores are forced to

reduce the prices if a category specialist retail store is present in the vicinity.

E-tailers: The customer can shop and order through internet and the merchandise are dropped at

the customer's doorstep. Here the retailers use drop shipping technique. They accept the payment

for the product but the customer receives the product directly from the manufacturer or a

wholesaler. This format is ideal for customers who do not want to travel to retail stores and are

interested in home shopping. However it is important for the customer to be wary about defective

products and non secure credit card transaction. Example: Amazon, Pennyful and eBay.

Vending Machines: This is an automated piece of equipment wherein customers can drop the

money in the machine and acquire the products.
http://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Discount_storehttp://en.wikipedia.org/wiki/Warehouse_storehttp://en.wikipedia.org/wiki/Warehouse_clubshttp://en.wikipedia.org/wiki/Warehouse_clubshttp://en.wikipedia.org/wiki/Warehouse_clubshttp://en.wikipedia.org/wiki/Variety_storehttp://en.wikipedia.org/wiki/Specialty_storehttp://en.wikipedia.org/wiki/General_storehttp://en.wikipedia.org/wiki/Convenience_storehttp://en.wikipedia.org/wiki/Hypermarkethttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Shopping_Mallhttp://en.wikipedia.org/wiki/Shopping_Mallhttp://en.wikipedia.org/wiki/Category_killerhttp://en.wikipedia.org/wiki/E-tailerhttp://en.wikipedia.org/wiki/E-tailerhttp://en.wikipedia.org/wiki/Vending_Machinehttp://en.wikipedia.org/wiki/Vending_Machinehttp://en.wikipedia.org/wiki/Vending_Machinehttp://en.wikipedia.org/wiki/E-tailerhttp://en.wikipedia.org/wiki/Category_killerhttp://en.wikipedia.org/wiki/Shopping_Mallhttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Hypermarkethttp://en.wikipedia.org/wiki/Convenience_storehttp://en.wikipedia.org/wiki/General_storehttp://en.wikipedia.org/wiki/Specialty_storehttp://en.wikipedia.org/wiki/Variety_storehttp://en.wikipedia.org/wiki/Warehouse_clubshttp://en.wikipedia.org/wiki/Warehouse_storehttp://en.wikipedia.org/wiki/Discount_storehttp://en.wikipedia.org/wiki/Department_store


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Some stores take a no frills approach, while others are "mid-range" or "high end", depending on

what income level they target.

Other types of retail store include:

Automated Retailstores are self-service, robotic kiosks located in airports, malls and grocery stores.The stores accept credit cards and are usually open 24/7. Examples includeZoomShopsand Redbox.

Big-box stores encompass larger department, discount, general merchandise, and warehouse stores.

Retailers can opt for a format as each provides different retail mix to its customers based on their

customer demographics, lifestyle and purchase behaviour. A good format will lend a hand to displayproducts well and entice the target customers to spawn sales.

[edit] Global Top Five Retailers

Worldwide Top Five Retailers[2]

Retail

Sales

Rank

CompanyCountry of

Origin

2010 group

revenue (US $mil)

1 Walmart US $421,849

2 Carrefour France $121,519

3 Tesco UK $94,244

4Metro

AGGermany $89,311

5 Kroger US $82,189

Functions of Retailing

Retailers play a significant role as a conduit between manufacturers, wholesalers, suppliers and consumers.

In this context, they perform various functions like sorting, breaking bulk, holding stock, as a channel of

communication, storage, advertising and certain additional services.
http://en.wikipedia.org/wiki/No_frillshttp://en.wikipedia.org/wiki/Automated_Retailhttp://en.wikipedia.org/wiki/Automated_Retailhttp://en.wikipedia.org/wiki/ZoomShopshttp://en.wikipedia.org/wiki/ZoomShopshttp://en.wikipedia.org/wiki/ZoomShopshttp://en.wikipedia.org/wiki/Redboxhttp://en.wikipedia.org/wiki/Big-box_storehttp://en.wikipedia.org/w/index.php?title=Retail&action=edit&section=3http://en.wikipedia.org/wiki/Retail#cite_note-DS-2http://en.wikipedia.org/wiki/Retail#cite_note-DS-2http://en.wikipedia.org/wiki/Retail#cite_note-DS-2http://en.wikipedia.org/wiki/Walmarthttp://en.wikipedia.org/wiki/Carrefourhttp://en.wikipedia.org/wiki/Tescohttp://en.wikipedia.org/wiki/Metro_AGhttp://en.wikipedia.org/wiki/Metro_AGhttp://en.wikipedia.org/wiki/Krogerhttp://en.wikipedia.org/wiki/Krogerhttp://en.wikipedia.org/wiki/Metro_AGhttp://en.wikipedia.org/wiki/Metro_AGhttp://en.wikipedia.org/wiki/Tescohttp://en.wikipedia.org/wiki/Carrefourhttp://en.wikipedia.org/wiki/Walmarthttp://en.wikipedia.org/wiki/Retail#cite_note-DS-2http://en.wikipedia.org/w/index.php?title=Retail&action=edit&section=3http://en.wikipedia.org/wiki/Big-box_storehttp://en.wikipedia.org/wiki/Redboxhttp://en.wikipedia.org/wiki/ZoomShopshttp://en.wikipedia.org/wiki/Automated_Retailhttp://en.wikipedia.org/wiki/No_frills


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Sorting

Manufacturers usually make one or a variety of products and would like to sell their entire inventory to a few

buyers to reduce costs. Final consumers, in contrast, prefer a large variety of goods and services to choose

from and usually buy them in small quantities. Retailers are able to balance the demands of both sides, by

collection an assortment of goods from different sources, buying them in sufficiently large quantities and

selling them to consumers in small units.

The above process is referred to as the sorting process. Through this process, retailers undertake activities

and perform functions that add to the value of the products and services sold to the consumer. Supermarkets

in the US offer, on and average, 15,000 different items from 500 companies. Customers are able to choose

from a wide range of designs, sizes and brands from just one location. If each manufacturer had a separate

store for its own products, customers would have to visit several stores to complete their shopping. While all

retailers offer an assortment, they specialize in types of assortment offered and the market to which the

offering is made. Westside provides clothing and accessories, while a chain like Nilgiris specializes in food

and bakery items. Shoppers Stop targets the elite urban class, while Pantaloons is targeted at the middle

class.

Breaking Bulk

Breaking bulk is another function performed by retailing. The word retailing is derived from the French word

retailer, meaning to cut a piece off. To reduce transportation costs, manufacturers and wholesalers typically

ship large cartons of the product, which are then tailored by the retailers into smaller quantities to meet

individual consumption needs.

Holding Stock

Retailers also offer the service of holding stock for the manufacturers. Retailers maintain an inventory that

allows for instant availability of the product to the consumers. It helps to keep prices stable and enables the

manufacturer to regulate production. Consumers can keep a small stock of products at home as they know

that this can be replenished by the retailer and can save on inventory carrying costs.

Additional Services

Retailers ease the change in ownership of merchandise by providing services that make it convenient to buy

and use products. Providing product guarantees, after-sales service and dealing with consumer complaints

are some of the services that add value to the actual product at the retailers end. Retailers also offer credit

and hire-purchase facilities to the customers to enable them to buy a product now and pay for it later.

Retailers fill orders, promptly process, deliver and install products. Salespeople are also employed by retailers

to answer queries and provide additional information about the displayed products. The display itself allows

the consumer to see and test products before actual purchase. Retail essentially completes transactions with

customers.


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Channel of Communication

Retailers also act as the channel of communication and information between the wholesalers or suppliers and

the consumers. From advertisements, salespeople and display, shoppers learn about the characteristics and

features of a product or services offered. Manufacturers, in their turn, learn of sales forecasts, delivery delays,

and customer complaints. The manufacturer can then modify defective or unsatisfactory merchandise and

services.

Transport and Advertising Functions

Small manufacturers can use retailers to provide assistance with transport, storage, advertising and pre-

payment of merchandise. This also works the other way round in case the number of retailers is small. The

number of functions performed by a particular retailer has a direct relation to the percentage and volume of

sales needed to cover both their costs and profits.

A business with a well known brand name lets a person or group of people set up a business. This

is in exchange for a fee. For eg: McDonalds, KFC, Subway.

The company continues to pay royalty to the parent company out of its profits on annual basis; say

10% or 15%.

Does not cost the company to expand.

Way to operate somebody elses business model.

Very popular method of business ownership.

Typically franchise agreements operate from 10 years to 20 years with available extension options

Franchising concept started in middle ages in U.S & became extensively popular in 1960s.

6000 franchise opportunities available in U.S.

Most concepts available have fewer than 100 units.

A new franchise opens in the U.S in every 8 mins.

40% of retail sales comes through a franchise model in U.S

Chain store

From Wikipedia, the free encyclopedia

Jump to: navigation, search
http://en.wikipedia.org/wiki/Chain_store#mw-headhttp://en.wikipedia.org/wiki/Chain_store#p-searchhttp://en.wikipedia.org/wiki/Chain_store#p-searchhttp://en.wikipedia.org/wiki/Chain_store#mw-head


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This article needs additional citations for verification. Please help improve this article by adding

citations to reliable sources. Unsourced material may be challenged and removed.(December 2010)

A Kmart chain store

A Walmart chain store

Chain stores are retail outlets that share a brand and central management, and usually havestandardized business methods and practices. Before considered a chain, stores must meet a litmus

test, it must have more than 10 units under the same brand and have a central headquarters,

otherwise it offers franchise contracts or is publicly traded.([1])These characteristics also apply tochain restaurants and some service-oriented chain businesses. In retail, dining and many service

categories, chain businesses have come to dominate the market in many parts of the world. A

franchise retail establishment is one form of chain store.

The displacement ofindependent businessesby chains has generated controversy[who?] and sparked

increased collaboration among independent businesses and communities to prevent chainproliferation. These efforts include community-based organizing through Independent BusinessAlliances (in the U.S. and Canada) and "buy local" campaigns. In the U.S., trade groups such as the

American Booksellers Association and American Specialty Toy Retailers do national promotion and

advocacy. NGOs like the New Rules Project and New Economics Foundationprovide research andtools for pro-independent business education and policy while the American Independent Business

Allianceprovides direct assistance for community-level organizing.

In 2004, the world's largest retail chain, Wal-Mart, became the world's largest corporation based on

gross sales.[citation needed]
http://en.wikipedia.org/wiki/Help:Introduction_to_referencing/1http://en.wikipedia.org/w/index.php?title=Chain_store&action=edithttp://en.wikipedia.org/wiki/Help:Introduction_to_referencing/1http://en.wikipedia.org/wiki/Help:Introduction_to_referencing/1http://en.wikipedia.org/wiki/Template:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Verifiability#Burden_of_evidencehttp://en.wikipedia.org/wiki/Kmarthttp://en.wikipedia.org/wiki/Walmarthttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Brandhttp://www.coloradorestaurantguides.com/independentrestaurants/chain.htmlhttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Independent_businesshttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Independent_Business_Alliancehttp://en.wikipedia.org/wiki/Independent_Business_Alliancehttp://en.wikipedia.org/wiki/Trading_companyhttp://en.wikipedia.org/wiki/American_Booksellers_Associationhttp://en.wikipedia.org/wiki/NGOshttp://en.wikipedia.org/w/index.php?title=New_Rules_Project&action=edit&redlink=1http://en.wikipedia.org/wiki/New_Economics_Foundationhttp://en.wikipedia.org/wiki/American_Independent_Business_Alliancehttp://en.wikipedia.org/wiki/American_Independent_Business_Alliancehttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/File:Wal-Mart_in_Madison_Heights.jpghttp://en.wikipedia.org/wiki/File:Wal-Mart_in_Madison_Heights.jpghttp://en.wikipedia.org/wiki/File:Super_Kmart.jpghttp://en.wikipedia.org/wiki/File:Super_Kmart.jpghttp://en.wikipedia.org/wiki/File:Wal-Mart_in_Madison_Heights.jpghttp://en.wikipedia.org/wiki/File:Wal-Mart_in_Madison_Heights.jpghttp://en.wikipedia.org/wiki/File:Super_Kmart.jpghttp://en.wikipedia.org/wiki/File:Super_Kmart.jpghttp://en.wikipedia.org/wiki/File:Wal-Mart_in_Madison_Heights.jpghttp://en.wikipedia.org/wiki/File:Wal-Mart_in_Madison_Heights.jpghttp://en.wikipedia.org/wiki/File:Super_Kmart.jpghttp://en.wikipedia.org/wiki/File:Super_Kmart.jpghttp://en.wikipedia.org/wiki/File:Wal-Mart_in_Madison_Heights.jpghttp://en.wikipedia.org/wiki/File:Wal-Mart_in_Madison_Heights.jpghttp://en.wikipedia.org/wiki/File:Super_Kmart.jpghttp://en.wikipedia.org/wiki/File:Super_Kmart.jpghttp://en.wikipedia.org/wiki/File:Wal-Mart_in_Madison_Heights.jpghttp://en.wikipedia.org/wiki/File:Wal-Mart_in_Madison_Heights.jpghttp://en.wikipedia.org/wiki/File:Super_Kmart.jpghttp://en.wikipedia.org/wiki/File:Super_Kmart.jpghttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/wiki/American_Independent_Business_Alliancehttp://en.wikipedia.org/wiki/American_Independent_Business_Alliancehttp://en.wikipedia.org/wiki/New_Economics_Foundationhttp://en.wikipedia.org/w/index.php?title=New_Rules_Project&action=edit&redlink=1http://en.wikipedia.org/wiki/NGOshttp://en.wikipedia.org/wiki/American_Booksellers_Associationhttp://en.wikipedia.org/wiki/Trading_companyhttp://en.wikipedia.org/wiki/Independent_Business_Alliancehttp://en.wikipedia.org/wiki/Independent_Business_Alliancehttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Independent_businesshttp://en.wikipedia.org/wiki/Franchisinghttp://www.coloradorestaurantguides.com/independentrestaurants/chain.htmlhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Walmarthttp://en.wikipedia.org/wiki/Kmarthttp://en.wikipedia.org/wiki/Wikipedia:Verifiability#Burden_of_evidencehttp://en.wikipedia.org/wiki/Template:Citation_neededhttp://en.wikipedia.org/wiki/Help:Introduction_to_referencing/1http://en.wikipedia.org/wiki/Help:Introduction_to_referencing/1http://en.wikipedia.org/w/index.php?title=Chain_store&action=edit


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Contents

1History

2Restaurant chains

3Regulation and exclusion

4See also 5References

History

The first chain store was British-owned W H Smith.[citation needed]

Founded in London in 1792 byHenry Walton Smith and his wife, the store sells books, stationery, magazines, newspapers, and

entertainment products.

In the U.S., chain stores began with the founding ofThe Great Atlantic & Pacific Tea Company(A&P) in 1859. By the early 1920s, the U.S. boasted three national chains: A&P, Woolworth's, and

United Cigar Stores.[1]

By the 1930s, chain stores had come of age, and stopped increasing their totalmarket share. Court decisions against the chains' price-cutting appeared as early as 1906, and laws

against chain stores began in the 1920s, along with legal countermeasures by chain-store groups.[2]

Restaurant chains

A Cracker Barrel chain restaurant

A restaurant chain is a set of related restaurants with the same name in many different locationsthat are either under shared corporate ownership (e.g., McDonald's in the U.S.) orfranchisingagreements. Typically, the restaurants within a chain are built to a standard format (through

architectural prototype development) and offer a standard menu. Fast food restaurants are the mostcommon, but sit-down restaurant chains (such as TimberLodge Steakhouse, Outback Steakhouse,

T.G.I. Friday's, Ruby Tuesday, and Olive Garden) also exist. Restaurant chains are often found near

highways, shopping malls and tourist areas.
http://en.wikipedia.org/wiki/Chain_store#Historyhttp://en.wikipedia.org/wiki/Chain_store#Historyhttp://en.wikipedia.org/wiki/Chain_store#Historyhttp://en.wikipedia.org/wiki/Chain_store#Historyhttp://en.wikipedia.org/wiki/Chain_store#Restaurant_chainshttp://en.wikipedia.org/wiki/Chain_store#Restaurant_chainshttp://en.wikipedia.org/wiki/Chain_store#Restaurant_chainshttp://en.wikipedia.org/wiki/Chain_store#Restaurant_chainshttp://en.wikipedia.org/wiki/Chain_store#Regulation_and_exclusionhttp://en.wikipedia.org/wiki/Chain_store#Regulation_and_exclusionhttp://en.wikipedia.org/wiki/Chain_store#Regulation_and_exclusionhttp://en.wikipedia.org/wiki/Chain_store#Regulation_and_exclusionhttp://en.wikipedia.org/wiki/Chain_store#See_alsohttp://en.wikipedia.org/wiki/Chain_store#See_alsohttp://en.wikipedia.org/wiki/Chain_store#See_alsohttp://en.wikipedia.org/wiki/Chain_store#See_alsohttp://en.wikipedia.org/wiki/Chain_store#Referenceshttp://en.wikipedia.org/wiki/Chain_store#Referenceshttp://en.wikipedia.org/wiki/Chain_store#Referenceshttp://en.wikipedia.org/wiki/Chain_store#Referenceshttp://en.wikipedia.org/wiki/W_H_Smithhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Henry_Walton_Smithhttp://en.wikipedia.org/wiki/The_Great_Atlantic_%26_Pacific_Tea_Companyhttp://en.wikipedia.org/wiki/F._W._Woolworth_Companyhttp://en.wikipedia.org/wiki/United_Cigar_Storeshttp://en.wikipedia.org/wiki/Chain_store#cite_note-1http://en.wikipedia.org/wiki/Chain_store#cite_note-1http://en.wikipedia.org/wiki/Chain_store#cite_note-2http://en.wikipedia.org/wiki/Chain_store#cite_note-2http://en.wikipedia.org/wiki/Chain_store#cite_note-2http://en.wikipedia.org/wiki/Cracker_Barrel_Old_Country_Storehttp://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/Franchisinghttp://www.chipmandesignarch.com/retail-prototype-programs-restaurant-prototype-development.phphttp://en.wikipedia.org/wiki/Fast_foodhttp://en.wikipedia.org/wiki/Timberlodgehttp://en.wikipedia.org/wiki/Outback_Steakhousehttp://en.wikipedia.org/wiki/T.G.I._Friday%27shttp://en.wikipedia.org/wiki/Ruby_Tuesday_%28restaurant%29http://en.wikipedia.org/wiki/Olive_Gardenhttp://en.wikipedia.org/wiki/Highwayhttp://en.wikipedia.org/wiki/Shopping_mallhttp://en.wikipedia.org/wiki/Tourist_attractionhttp://en.wikipedia.org/wiki/File:Crackerbarrel_hagerstownMD.jpghttp://en.wikipedia.org/wiki/File:Crackerbarrel_hagerstownMD.jpghttp://en.wikipedia.org/wiki/File:Crackerbarrel_hagerstownMD.jpghttp://en.wikipedia.org/wiki/File:Crackerbarrel_hagerstownMD.jpghttp://en.wikipedia.org/wiki/Tourist_attractionhttp://en.wikipedia.org/wiki/Shopping_mallhttp://en.wikipedia.org/wiki/Highwayhttp://en.wikipedia.org/wiki/Olive_Gardenhttp://en.wikipedia.org/wiki/Ruby_Tuesday_%28restaurant%29http://en.wikipedia.org/wiki/T.G.I._Friday%27shttp://en.wikipedia.org/wiki/Outback_Steakhousehttp://en.wikipedia.org/wiki/Timberlodgehttp://en.wikipedia.org/wiki/Fast_foodhttp://www.chipmandesignarch.com/retail-prototype-programs-restaurant-prototype-development.phphttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Cracker_Barrel_Old_Country_Storehttp://en.wikipedia.org/wiki/Chain_store#cite_note-2http://en.wikipedia.org/wiki/Chain_store#cite_note-1http://en.wikipedia.org/wiki/United_Cigar_Storeshttp://en.wikipedia.org/wiki/F._W._Woolworth_Companyhttp://en.wikipedia.org/wiki/The_Great_Atlantic_%26_Pacific_Tea_Companyhttp://en.wikipedia.org/wiki/Henry_Walton_Smithhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/W_H_Smithhttp://en.wikipedia.org/wiki/Chain_store#Referenceshttp://en.wikipedia.org/wiki/Chain_store#See_alsohttp://en.wikipedia.org/wiki/Chain_store#Regulation_and_exclusionhttp://en.wikipedia.org/wiki/Chain_store#Restaurant_chainshttp://en.wikipedia.org/wiki/Chain_store#History


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Regulation and exclusion

Some small towns in the United States whose residents wish to retain their distinctive character

such as Provincetown, Massachusetts and otherCape Cod villages; McCall, Idaho; Port Townsend,Washington; Ogunquit, Maine; and Carmel-by-the-Sea, Californiaclosely regulate, even exclude,

chain stores. They don't exclude the chain itself, only the standardized formula the chain uses. Forexample, there could be a restaurant owned by McDonald's that sells hamburgers, but not theformula franchise operation with the golden arches and standardized menu, uniforms, and

procedures. The reason these towns regulate chain stores is to protect independent businesses from

competition.

Retail supply chain

Merchandising at a Walgreens in Chicago

In the supply chain, merchandising is the practice of making products in retail outlets available toconsumers, primarily by stocking shelves and displays. While this used to be done exclusively by the

stores' employees, many retailers have found substantial savings in requiring it to be done by the

manufacturer, vendor, or wholesaler that provides the products to the retail store. In the UnitedKingdom there are a number of organizations that supply merchandising services to support retail

outlets with general stock replenishment and merchandising support in new stores. By doing this,

retail stores have been able to substantially reduce the number of employees needed to run the store.

While stocking shelves and building displays is often done when the product is delivered, it is

increasingly a separate activity from delivering the product. In grocery stores, for example, almost

all products delivered directly to the store from a manufacturer or wholesaler will be stocked by themanufacturer's/wholesaler's employee who is a full time merchandiser. Product categories where this

is common are Beverage (all types, alcoholic and non-alcoholic), packaged baked goods (bread and

pastries), magazines and books, and health and beauty products. For major food manufacturers in thebeverage and baked goods industries, their merchandisers are often the single largest employee

group within the company. For nationwide branded goods manufacturers such as The Coca-Cola

Company and PepsiCo, their respective merchandiser work forces number in the thousands.
http://en.wikipedia.org/wiki/Provincetown,_Massachusettshttp://en.wikipedia.org/wiki/Cape_Codhttp://en.wikipedia.org/wiki/McCall,_Idahohttp://en.wikipedia.org/wiki/Port_Townsend,_Washingtonhttp://en.wikipedia.org/wiki/Port_Townsend,_Washingtonhttp://en.wikipedia.org/wiki/Ogunquit,_Mainehttp://en.wikipedia.org/wiki/Carmel-by-the-Sea,_Californiahttp://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/Walgreenshttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/File:Walgreens_Obama_Merchandise.jpghttp://en.wikipedia.org/wiki/File:Walgreens_Obama_Merchandise.jpghttp://en.wikipedia.org/wiki/File:Walgreens_Obama_Merchandise.jpghttp://en.wikipedia.org/wiki/File:Walgreens_Obama_Merchandise.jpghttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Walgreenshttp://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/Carmel-by-the-Sea,_Californiahttp://en.wikipedia.org/wiki/Ogunquit,_Mainehttp://en.wikipedia.org/wiki/Port_Townsend,_Washingtonhttp://en.wikipedia.org/wiki/Port_Townsend,_Washingtonhttp://en.wikipedia.org/wiki/McCall,_Idahohttp://en.wikipedia.org/wiki/Cape_Codhttp://en.wikipedia.org/wiki/Provincetown,_Massachusetts


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Documents

Rini Mam Notes