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Franchise Business Problems

In: Business and Management

Submitted By Atakkau
Words 2128
Pages 9
1. Introduction.

In this modern age, the evolution and development of the economy creates new opportunities, so additional academic and professional contributions are necessary for guiding business practices. Due to this reasons, the franchise systems were created as a mode of expanding businesses. Most of business minded people were selecting the franchising business as their way to expand their profits as well as their wealth. The concrete reason why they were selecting this kind of business is due to systematic management and cash flow which is provided by the franchisors. However, in these competitive markets, they still have their own weaknesses and might affecting failure of the franchising business itself. The weakness is depends in various aspects including surrounding cultures, afford abilities of the consumers, and etc. Therefore, the franchisors need to do a certain research in order to prevent their business from getting collapsed due to their own weaknesses and any surrounding problems. The remainder of this paper is structured as follows. Section A is regarding demographic, geographic and psychographic of the respondents involved throughout the research. Section B is examines the factors which causing the failure of franchising business in Malaysia. And on the last section examines the strategies which can be taken in order to improve franchising business in Malaysia.

1.1 Problem Statement.

Recently, Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob, from his speech which is published on 31st March 2010 in Business Times, attribute that 14 franchise businesses are closing soon due to being less competitive, not coming out with innovative products, not conducting enough research and development as well as suffering from the global economic crisis. All these matters are resulting on...

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