Understanding of Retail Management

1. General Overview Of Retail

Understanding Retail

Retail sales are from a small number of commodities to consumers.

Retail comes from the French “Retailer” meaning “cut into small little” (Risch, 1991).

Understanding of Retailing is all activities requiring the marketing of goods and services directly to customers

Understanding Retailer is all business organizations that acquire greater than half of the sales proceeds of retailing (lucas, bush and Gresham, 1994)

Retail Classification

According to Pintel and Diamond (1971), Retail can be classified in many ways, for example Retail can be regrouped according to the activity based on the sale of goods are as follows:

-Small Retail

Small Retail businesses as retailer who earn under $500 per year. The retail owners are generally responsible for all sales and management.Usually most store owners on a small retail business is owned by individual (Individual Proprietorship).

-Large Retail

At this moment in the Retail industry can speak and by large organizations, such organisations include: Department Store – the Chain organization (Organization of serial), supermarkets, Warehouse stores, Catalog, and Online Outlet Store (Online store)

The Department Store is one of the big retailer that offers a wide variety of types of products/merchandise, price and comfort level in the shop.

1. Retail Management & planning process
In select retail stores, shoppers considering a lot of things. Factors that note is related to the needs of the economy. On the other hand the emotional needs (such as prestige) also sometimes affect the choice.

Economic factors that are relevant in selecting retail store among others include:

– The Price.
There is a retail store that installed price die like supermarket and departmental store) and some are flexible or set a price can be negotiable (like a discount store).

– Ease
Ease of parking, can quickly go after paying, and easy to find the desired item (including the process of finding, comparing, and selecting).

-Quality of the products offered.
Salespeople help.
Whether to use self-service, help passively, or actively help.

– Reputation
Honesty and fairness in the sale and purchase of

– The values offered
The difference in total customer value and total customer cost. Total customer value is a set of benefits that are expected to be customers of products and services, including product value (e.g., reliability, durability, durability/performance), service value (delivery of goods, training, installation, maintenance, repairs), personnel value (empathetic, responsive, competent, trustworthy), and image value (corporate image). While total customer cost consists of the price paid, cost time, effort, and cost the cost of a psychic.

– Special services offered.
Free shipping, credit purchase and can return or exchange goods purchased.

2. Retail information systems
In the retail trade or retail where the data flows of merchandise and money spinning very fast surveillance and control is required is good. One form of such supervision and control is to do a recording of an orderly and regular data, as well as giving the information in the form of a reporting system that is timely and accurately so as to provide optimal benefits for any decision to be taken. Retail information system is an information system that was developed by using an approach based on integrated technology of utilization of mechanization system data processing equipment as a provider of information to support all aspects of activities that are related to operations, management, and analysis in terms of decision making. In general the structure of a retail LICENSE is no different with other management information systems, including:

– Levels of information to process a transaction, in this case the function is as an inquiry response. This level is usually the responsibility of the staff or the clerk.
Operational level information for planning, control and decision making. Information relating to the operational activities required by each passing day Lower Management who are at this level for decision-making.

– Levels of information for strategic planning, policy and decision-making. The purpose and direction of the company is determined by Top Management. Therefore information relating to performance of the company and the State of the environment outside the company need to be owned by this rate for the sake of the progress of the company.


Any company considering franchising as a method of growth and distribution or individuals considering franchise
as a method to start his own business, must have the key to success for this industry. Based on observation and hands-on experience working in the largest franchise company in its field (McDonald’s and MailBoxes) writer
17 summarize the key to success for a franchise business, namely:

1. businesses that are run should be a prototype effort (or series of Shop) which proved to be a success. A key factor is the Foundation of a franchise program. These shops should have been tested, serviced, and operated successfully as well as continue to be profitable.

2. Have a strong management team consisting of employees, managers and Director (and also the competent consultants) who understand the industry the special field of the franchise, as well as efforts to understand
the law and the business of franchising as a method of expansion.

3. has sufficient capital to start and grow a franchise program and make sure that there is enough capital for franchiser to provide initial support and follow-up on franchisees. Franchisee recruits must also have sufficient capital to fund investment costs and operational costs (working capital) in the early stages of the growth of his business.

4. Have the identity of the trademark’s distinctive, different and protected by law. All It includes the trade-name (brand), uniforms, signage, slogan, attire and image the company overall.

5. operation and management methods Have proven and poured in form of a written comprehensive operating manual, and are not easily imitated by competitors. Keep its value for franchisees in over a long time and can controlled via a standard quality control of operational objective and clear.

6. Have a systematic training program and applicable for the franchisee is well in Headquarters, in a store or at a location that is proposed by the franchisee. This training can be held at the beginning of co-operation or as a continuous program.

7. have a supporting staff of field (franchise support) are trained and professional. This Staff periodically helps franchisees and monitoring standards quality control.

8. Have a comprehensive legal document that reflects the business strategy company policy and operations. Document supply (Franchise Offering Circular) must be prepared in accordance with local law, the agreement and the franchise
must show a balance between the rights and obligations of the franchiser and franchisees.

9. Efforts are being offered have proven sufficient market demand for the products and services developed by the franchiser. Franchiser’s products and services must have a market which is able to guarantee the sales growth
sustainability is not a trend or a momentary model, capable of match against a rival plan from directly or indirectly, and the shift in consumer preferences.

10. Have a set of standard architecture and the site selection criteria uniform. These standards have been developed carefully and could easily obtained in a competitive real estate market.

11. Understand the proper understanding of competitors (direct or not direct) that will be faced by the franchisor in franchises on the market prospective franchisees, and a rival who would be facing the franchisees in marketing
products and services to potential customers.

12. have a relationship with Government, suppliers, financial institutions, developers, and other important resources.

13. have a filtering system and the franchisee to identify recruitment qualification requirements that must be met for prospective franchisees, for example financial capability, reliability, and business knowledge of the industry

14. record-keeping and reporting systems Are effective for maintaining performance franchisees and ensure that the royalty is reported accurately and get paid on time.

15. has the capability and facilities for research and development of products and services new for consumers continuously through a franchise network.

16. have a communication system that makes it easy to open dialogue and sustainability with franchisees, who later would reduce the the possibility of conflict in this network.

17. has the program of advertising, marketing and PR at the local level, regional, national and even international; designed for candidates franchisees and consumers in places run by franchisees.


Have a business success, wants to open a new branch but capital and corporate human resources are very limited. How his strategy? While the market has not been intercepted, competitors quickly fill the vacuum market with
franchise program. The strategy has proven its success in almost all hemisphere, in developing or developed countries. No wonder franchise dubbed The Great Inventions of Capitalism.

The franchise is the translation of the word franchise. Franchising is a business arrangement whereby a company (franchiser) gives the right on Independent Party (franchisee) to sell a product or service company with the regulations set forth by the franchiser. Franchisee using the name, products/services, procedures, marketing expertise, system procedures operations, and supporting facilities of the franchiser company. As in return the franchisee pays an initial fee and royalties (service charge franchiser company) on management as provided for in the Treaty franchise. A good franchise package is able to make someone right to operate a business successfully, even without prior knowledge about the business.

In the United States, the franchise has been chosen as an alternative to running the business retail industry favorite, because it is proven to have more chances of success higher than normal business format. By comparison, regular business format, has a chance of success 35-45%, while the company’s chance of success the franchise reach 85-90%. It’s no wonder if the franchise is described as a story, the success of the 1990, and was dubbed “The Great Inventions of Capitalism “. In 1992, the franchise business 558.000 coloring the continental United or 1/12th of the total of existing efforts. 2000 ago estimated sale franchise sector reaches US $ 1 trillion, or 50% of total sales in the sector retail. More than 8 million people get a living from business franchises. About 170,000 new jobs would be created an annual franchise sector. With the calculation that a franchise opens every eight minutes, the franchise really the success stories of the 1990-era (IFA, October 1994).

The origins of the concept of franchising started in 200 BC, when a Chinese entrepreneurs are introducing the concept of a series of stores to distribute food products with a particular brand. Nevertheless, the concept of franchise products as it is known today started in 1863 by sewing machine company Singer in America. Successful Singer’s next distribution system followed by Coca-Cola. Coca-Cola sold his first franchise in 1899. Then followed
by car dealers and oil in 1910. The growth of the franchise originally known as new business format franchise takes place at the end of an era 1950. Until 1998, a franchise with an estimated distribution way reach more than 50% of the total retail sales in the United States. Successful formats the franchise also occurred in other developed countries such as Canada, United Kingdom, Germany, and Japan. Developing countries like Mexico, Indonesia, and
Malaysia also get that franchising is an effective way to creating new business and increase employment opportunities.

In Indonesia the franchise system began in the 1950, i.e. with the advent of motor vehicle dealers through the purchase of a license. The Development Of the second began in the 1970, that with the start of the system purchase
plus, which is licence franchisee does not just become a dealer, but also have the right to manufacture its products. An example of this format such as Coca Cola. The development of the actual franchise system or so-called franchise format the business was started in the 1980. in franchise business format, franchisees do not
simply producing and supplying products/services, but also acquire rights full to clone brand, logo, attributes, design, layout, system procedures operation and marketing of the franchiser. An example of this format e.g. Kentucky Fried Chicken.

While people think that the franchise was limited to the food industry ready to eat, the fact shows that all types of business that might exist, franchise business can be. For example, hotels, real estate, hospitals, course, laundry, studio photos, mini-mart, spa, salon, repair shop, chemist, hair care, garage, post office and telecommunication/Internet Cafe could be developed with the format of the franchise.


Part 2

When you have decided that a franchise is the right business choice for you, one of the first decisions that must be taken is identify the business concept and the franchiser that is right for you.

This article is a continuation of the article with the same title part 1.
Other factors to consider in choosing the right franchise is:

10. Scope of franchise network

As a prospective franchise owners, you should choose a franchiser the system has been developed by forming a large network. Although the concept of size is relative, size that make franchise owners can enjoy the benefits of the economy is the best. How does one Specifies that a franchise has developed into a network that big? Simple course. The first clue was the introduction of the name. When you quickly get to know the name and logo of a company without franchise have to do some research, then it is likely that the franchiser has already have a network. In addition, ask whether the company has the power buy so was able to negotiate a discount for large parties as well as contracts nationwide exclusive to its franchise owners. The last, find out if you can rely on the cooperation of advertising for local, regional, or national.

The factors above meant that the franchiser is big enough to be able to forward network advantage on you. Don’t be fooled by the low franchise fee offered by the company that franchises are not known. The Principle Of that read “caveat emptor” (carefully before buying) is the key to entering its. The power of national or regional networks will be much more meaningful than the slight difference franchise fee. Remember, you usually got worth what you pay.

11. Position within the industry

It is wise to choose actions that are no. 1 in their field. It often happens strong competition between franchises that offer the same or similar services. Top position in the industry typically have more opportunities to persist in the fight grabbing market share. In every industry must case jolts. The first fall is an independent company. Next the network is weaker and smaller. Only the strongest franchise-franchise who can endure and one will emerge as the best. Choose McDonald’s from every type of industry then your chances to survive will be greater.

A bit of time in the library will tell you who the leaders in the industry you want to enter. Magazine related business or entrepreneurial franchise usually published order franchise companies every year. The Preparation Of
This order was carried out by an independent organization and is the best source of to determine the leadership in each industry. IFA, Department Of Commerce The Interior and the AFI is also a source of information that needs to be be taken into consideration.

Do not rely on the words of a salesman for the franchise. Take a look at the ranking published an independent organization when you want to know how an the company franchises stand the competition. When the company
included in the Group of top 10%, then they have the possibility surviving the shake-up of the market.

12. Site selection Assistance

Good location-which gives access to a large number of target groups the market-is one of the important factors that determine the level of sales of a retail outlets. Therefore, a retail franchise company will provide some sort of help and approval for each franchise location for the their franchise owners. Elements of a good location-facilities to maximum, and then customer traffic is sufficient, a dense population demographics-needs to be examined by the a who expert. Even the most sophisticated computer programs though can not replacing an experienced real estate experts in the review site ideal for retail.

Computer programs for the analysis of a location check the demographic factors are a good tool, but nothing can replace a skilled real estate get to know this kind of business and get to know its market area. Anyone can
refers to a location that customer traffic high for now. However, customer traffic is just one of the factors that must be considered. Most independent operators are not aware of the many factors that must be consider when choosing the right location for their business. A experienced site selectors will be looking for the key places
have the highest potential and will also help get the requirements as well as the best rental conditions.

Error in choosing a location could be fatal. Be careful with franchise companies that let you choose the location yourself without them check it out. A more established franchise companies certainly have staff experienced site selectors and get to know the exact location analysis. This Staff will work to help you choose the best location for franchising you.

13. The Facilities Design and construction

All good franchise companies provide assistance and make standard for the design and construction of facilities. Construction management and store fixture modules available to all franchisees through its franchise companies. Beware with the company that let you design your own shop. You pay for their expertise. No matter how good you are, it may be There are details that have been missed and this may require a large fee for However, if the facility is rebuilt. When the company’s franchise provides ease of construction management or major, you will avoid from the sense of frustration because the related contractor, electrician, and people from other areas of construction.

Companies the most established franchises will offer packages module stores, as well as guidelines and standards for imagery and design. Appearance a franchise outlet should reflect the image of the franchise company being a parent. The franchiser’s advertising costs spent much of that name, logo, and his shop is known by the public. The franchisee will assist efforts This introduction by way of adapting to the standards established by the franchiser.

14. Training

Training is one of the most important commodities that are offered by the franchiser. Armed with the knowledge gained from the training, the franchisee more ready to overcome common barriers. Because of this, almost aware of
all franchiser requires training in the classroom and practice for all franchisees. Although training is different for each franchise, but normally not less than two or three weeks.

Every franchiser must have a training manual. Some other companies even offer additional resources such as videos and the cassette to be used as a tool of continuous training by his franchise owners. Beware of franchise companies stating that they could teaches all things to you in just a few days of training at the store you. Ask for an outline of the training program and check carefully. Program this should include training in the classroom and practice. Should also be studied is the aspect of the day-to-day operations of the store as well as business management topics in general such as the preparation of the work plan, accounting, and marketing. Ask training programmed planned by the franchiser when evaluating options franchise.

It’s also important to consider the quality of the training given franchiser before you buy it. How the experience of the staff of her training? Material What do they offer? Is there a continuous training in the field?

15. Grand Opening Support

Today’s grand opening! This is an important promotional opportunities to start franchise and run it. An established franchise companies will offer promotional packages to maximize these opportunities. Promotions and packages
grand opening marketing program that is complete should be available. Banners, flyers, posters, ads, and more should be provided for franchise owners on the day opening. A good franchise companies will also provide his staff
to help manage the store and organize your grand opening promotions.

The first days after the opening is a challenging experience. A good company will provide a staff of experts who help you during at the time. Support this is another advantage of joining a a healthy franchise network and strong.

The things that are important in the promotion of the grand opening was a banner the exterior visible from the street, followed by a poster in your window, door, hanging flyers, balloons, and ads that announce discounts and programs opening.

16. Continuous operational support

Your belief in a concept of the franchise could have measured the extent to which the company gave its support. If the franchiser disinclined to provide assistance This might mean big trouble for the franchisee. Operational support the engine is the important thing. Franchiser must pay the experts operations that really understand every detail of the operation franchise and backed by a strong central office staff. Several kinds of supporting method
is a toll free phone number, computer networks, as well as the National Convention the regional Conference, and the preparation of the programmed and marketing materials. The other thing the program was the establishment of the national media, the establishment of Advisory Board franchise owner, new product development, and the availability of resources marketing. This peripheral support function could give an enormous difference on your franchise experience.

Before making a decision to buy a franchise, is doing the evaluation of the the program and the ability to support the company. Do they have the local representative is assisted by a supporting organization (Headquarters) is good?
Avoid operations that do not have the ability to support the field continuously and consistent at the national level or at least in your area.

17. Exclusive Franchise Territory

Noted that franchiser are prohibited from designating more than one franchisee in an adjacent location. This is because the one major problem facing franchise unit is the rivalry with the franchiser’s franchise units or more. Although the expansion franchise system is required to gain an advantage–such as purchasing great party, networking, joint advertising, name recognition, and so on-the-a good franchiser will not bring up the rivalry between the shop own and other franchise unit. Most companies give a kind of franchise assurance that a shop that could potentially become a rival will not be opened in the “individual franchise exclusive territories”.

The size of the protected area varies depending on the demographics, population densities, patterns of travel, and the population is needed to support an outlet. Some franchise owners assume that the larger the area the better. This isn’t really a problem. This protected area must be large enough for a store can succeed, but small enough so that the rivals can enter.

For example, if a franchiser allow only one outlet in a the city that can hold 10 outlet, then the rivals will fill
the drawback. The power of the nine rival units will make their can build identity trade names by doing more advertising and make them more clearly than any single franchise owners. On Finally, the rival parties will open the tenth franchise owners close shops the single is out of this competitiveness.

Be careful on the franchiser gives no exclusive territories or regions that exceeds the limits of reasonable an area business. They may not ignore the long-term interests of their franchise units.

18. Franchise Fee

Franchise fee must be examined to find out if this franchise legitimate company or not. Fee which is only a few hundred dollars (for the alien franchise) or under the fifteen million (for local franchises) should be suspected, as it is not possible a franchise company can give you the assistance needed by the His franchise buyers. Beware of the franchise company “mail-order” that do not provide support or who offer to help you without franchise fee or royalty fees. Can-can you have to pay consultation fees in a large face, and then abandoned after receiving equipment and lower quality fixture. Not wise to buy a franchise without review documents.

A legitimate franchise companies have long-term interests against the ability of his franchise units in achieving success. Some companies using franchising as a means to dredge the advantages the short term. Often the case this kind of company leaders announced that they were bankrupt when faced with the demands of the the courts of the purchaser of a franchise that once their hokey, and they start this hoax again with another company name. Because they do not show a valid document, you cannot know how many times they ever bankrupt.

19. Financing a franchise

According to the International Franchise Association, the cost of starting a franchise can as low as $ 8,000 or even as high as $ 5 million. The Franchise fee from the local franchise in Indonesia ranged from 10 million to 400 million dollars. This fee is usually includes initial fee, remodeling, supply and inventory, deposit, fee before
starting a business, the cost of training, and working capital. Other costs that will appear then the amount of royalties is between 2-15% of sales.

One major problem facing prospective franchisees is figuring out how Gets the initial investment. The best setting is looking for franchise companies who gave financial help, such as renting out equipment and fixture without
ask your home collateral. The good intentions of this financial aid awarding indicates that the company’s strong franchise financially and convinced that the business could generate enough income for you paying the rent.

The franchise company wants all payments are made in advance to look out for. This is a danger sign that shows that perhaps the company’s weak Financials or not quite sure such business could give an income enough for you. Usually the company franchise This is sort of the new company and greater risk than the more established rival. The best way to evaluate a franchiser, such as this is to do a reference check to their franchisees are still active and inactive.

The selection criteria are presented is designed to help you in the process of election of franchiser/franchisee. When you’ve found the one or more business concept that’s right for you, you should evaluate some of the company (franchiser) which offers similar kind of franchise. You should perform a thorough investigation of its own against the odds franchises before deciding to make a purchase rights franchise These. You may need to consult your lawyer or accountant. Ask an existing franchise owners are also a good way to got the information. Remember that it is impossible to find a company franchise where all owners are happy. But you can do a diligent inquiry to satisfy yourself that you has chosen the right franchise. Your choice of purchase rights franchise Perhaps the most important decision is who you’ve created during the life of you. We hope this information will help you take
the right decision. Regardless of that decision, may you succeed in the struggle you achieve the success of the effort.


Part 1

When you have decided that a franchise is the right business choice for you, one of the first decisions that must be taken is identify the business concept and the franchiser that is right for you. The factors that should be considered are:

1. Type of work

You have to enjoy your child at work business you choose. For example, the If you don’t like to crawl under the car, do not enter the business repair exhaust or oil change. Sam Walton founder of Wall Marts says key his success is because he likes the retail world not as a job, but it is a hobby for him.

2. Training/special education

Certain types of business, such as professional services franchises, such as the services of a lawyer, demanding special education or training that cannot be granted only in a couple of weeks. Types of franchises like this is an excellent choice for professionals in the field of services offered, but should be avoided by those that have no technical knowledge is needed to operate the this franchise.

3. Number of employees

Labor-intensive business brings many complexities like finding and maintaining a good work force, compliance to government regulation with regard to employee benefits, and so on. Many of these problems can be avoided by choosing a business that can be run by a family member coupled with the power of full or part-time.

4. Inventory Requirements

A business that requires huge amounts of inventory not only demanding greater working capital, but also contain many risks associated with the possibility of old inventory or inventory selection that is not right. Service businesses is very popular lately because of this business requires little inventory or none at all, and this is beneficial for owners the business.

If necessary have the inventory, how supply management products for enterprises the franchise. Whether the product is exclusively supplied by the franchiser, how much is it and compare it with the price if purchased without going through the franchiser. Generally a good franchiser provide a cheaper price than the price the normal market, because of its scale. If the price of the franchiser’s more high, we recommend that you do not purchase the franchise rights to decide.

5. Vulnerability to economic fluctuations

A business in the field of basic goods or services that are always sought after consumers in the While prosperous nor the recession offers security against economic fluctuations. When the pace of the economy slowing down, people tend to reduce the expenditure of the that is not important (such as cars, furniture, and luxury goods) and reduce the use of the service (such as travel and leisure services). Basic needs such as food grocery items, services, business, mail, and shipping is relatively not affected.

6. Capital Requirement for starting

The most common reason a lid of a business is the lack of capital. Make sure you selecting the appropriate business with a capital you have. Do not impose yourself or borrow too much, so you can’t go through a phase of
early. In addition to the necessary capital for equipment, supplies, inventory, and construction, you should have enough working capital to get through the initial phase of where is your negative cash flow. Keep in mind that the estimated working capital provided by the franchiser is only an estimate. To be safe you need to multiply the estimated working capital is two or three times. Ask the franchiser to do need additional funds in addition to the franchise fee, royalty and working capital as well as how much it’s worth. Whether the franchiser also gives
assistance in the matter of funds, and how its shape.

7. Growth rate

A healthy franchise company will have growth rates high in terms of the number of units that are opening every year. Don’t be fooled by the franchising company that provides “percentage growth”. The evaluation of the
based on percentage growth (instead of the number of units opened) can give a vague sense of security on a prospective buyer.

For example, a franchise company that has only one outlet can Add three outlets next year and show the growth rate of 300%. Whereas, the franchiser has 1000 outlets must add 3000 outlet again to achieve the same growth rate. By looking at the the relative size of the two companies, it is not appropriate to compare percentage their growth rates. Instead, an evaluation should be made based on the number of outlets that opened a company in years

A strong growth rate positively affect the ability franchiser’s franchise owners to support. The franchise company got a lot of income from the franchise fee will be able to raise staff and provide various types of support on their franchise owners. While It’s not its franchiser, is growing at a good rate is usually not being able to do so.

A fixed growth rate, as shown by the addition of the number of outlets per year, is an indicator of health and
the potential advantages of a franchise opportunity. Be careful with the level given in the form of growth percentage growth, as this often cover more relevant information about the actual growth of the the company franchises.

8. The level of profits and financial condition

Explanation of government regulation of franchising namely, REGULATION No. 16 of 1997 Article 3 point a, requires companies to disclose a franchise the financial condition of the franchiser to prospective franchisees. The reason is obvious. You definitely do not want to invest the savings of a lifetime you for a the franchise when the franchiser is in the verge of bankruptcy and so will not be able provide support you already pay a franchise fee.

Franchiser must be willing to provide a balance sheet showing the assets and liabilities, as well as financial statements and expenditure report indicates whether the franchiser earn profit or not. At least franchiser must present financial statements over the past three years back. Please review this statement carefully before you take the decision. Enlist the services of a professional if you have difficulty understanding.

Common sense says no franchiser who continue to incur losses that will last long in the competitive market. Now it’s a franchise company must can show its ability to operate profitably. Report finance a franchise company can be obtained from the financial reports or from his franchise offering circular. These documents will be provide insight about how long the company has been operating and How stable financial conditions

A healthy and robust Franchiser will engender a strong branch anyway. Same as it was, a corporation is profitable is a good indicator that stating that the franchiser may provide support on a network of franchising. When buying a franchise, you must obtain the conviction of franchiser’s ability to endure and give adequate support all you need in the future. Avoid the franchiser continues to partner with losers.

9. Business Involvement

Wise is the Act of reducing investment risk by buying a franchise from the company that has been operating for several years. The rule generally franchiser has operated well for at least five to ten of the year. Challenges facing business-new business of the once-numerous franchiser beginners who only lasted a few years. Many fast-food franchiser come and go, but McDonald’s continued to be one of the best investments in the industry
fast-food over the years. McDonald’s business experience for many This year helped them win the dominance in their field.

Does this mean you have to buy a McDonald’s and entered the business fast-food? Does. But this means that you should buy his McDonald’s the industry you choose, whether it’s automotive business, computers, recreation or service business, there is definitely one the best company in the industry. Ability to maintain a top position in any industry for the time the old one was an indication that the management will be able to cope with the threat of competition in the future.

In future competition in the corporate world will be more fierce. Will new companies popping up both local and multinational competing for the same market. In a very competitive market, a franchise opportunities that have been sticking with a healthy growth rate for a long time demonstrated a smaller risk for prospective owners
franchise. The old saying goes, “time is money” could mean that there is little shared risk company franchise has a long history and stable.