Cavite State University - CCAT Campus - Library

A Marketing Research (BSBM) Major in Marketing -- Cavite State University-CCAT Campus, 2019.

Includes bibliographical references and appendices.

BAGORIO, JAMAICA C., DAYRIT, REY AMARILY R., PERDITO, JAN MARIEL O., Benefits and Risks of Franchising: The Case of Selected Entrepreneurs in the 4th District of Cavite. Undergraduate Thesis. Bachelor of Science in Business Management major in Marketing Management at Cavite State University-Cavite College of Arts and Trade, Rosario, Cavite. Adviser: Mr. Arman M. Ambas. Technical Critic:

The study was conducted from December 2018 to April 2019, including the preparation of outline and the writing of the manuscript at Cavite State University-CCAT Campus while the survey was conducted within the 4th District of Cavite (Dasmariñas).

The general objective of the study was to determine the benefits and risks of franchising in the selected entrepreneurs in the 4th District of Cavite. Specifically, study aimed to determine the demographic and socioeconomic profile of the participants in terms of age, sex, civil status, monthly average income, and length in operation in franchise business, determine the reasons of acquiring a franchise, determine the benefits of franchising, determine the risks of franchising, and determine the significant relationship of the benefits and risks towards a franchise business.

The researchers used triangulated method of research which is the combination of qualitative and quantitative method that was used for the validation of data through cross verification of two variables which are the risks and benefits of franchising. The participants for the study were the owner of the franchise/franchisee regardless of the existence of the business in Dasmariñas, Cavite. The survey questionnaire consists of set of questions that includes the information about the profile of the participants in terms of age, sex, civil status and monthly average income, and about the franchise such as name, location and length of operation of it. Another was the questions prepared by the researchers that were related about the study.

After the retrieval of the survey questionnaire, data were tabulated, analyzed and interpreted using the statistical treatment like frequency, percentage and correlation.

The researchers concluded that the dominant entrepreneurs in Dasmariñas, Cavite were male, they makes decision easily, willing to take financial risks, and task oriented managers. They engage more in business rather than females, ages 39 to 48 years old, married that are stable in life already and ready to take risks and do everything for their family. Most of the participants have a monthly average income of below P 50,000.00 from operating a franchise business. Most of the participants were engaged in food cart franchise with 1- 5 years of operation. And majority of the entrepreneurs acquired a franchise business to earn more money that serves as their source of living.

Being a boss of their own business was one of the reasons why they engaged in franchise business. They handle their own time and can command in favor of them. Immensely profitable was least considered benefits acquired in franchising. On the other hand, competitors were the frequent response as being a risk of franchising because competition is always there, and the wrong choice of location and perishable goods were the least considered because mostly of the good location are fully occupied by the other big businesses and somehow expensive. And with the help of Pearson correlation the relationship of two variables which are the benefits and risks of franchising was determined. It reveals that the profile of the participants in the study did not matter in acquiring benefits or risks, thus, anyone who franchise can acquire benefits and risks of franchising regardless of sex, age, civil status, average monthly income and length in operation in franchise business. On the other hand, benefits and risks have significant relationship towards a franchise business because the two variables have direct relation with each other means that in every benefit there is always risk and in every risk there is always a benefit to acquire.

The researchers recommend to the prospective franchisees, to choose a right industry that can create a big demand for customers. And also, before engaging into a business, make a proper preparation and set goals and objectives to have a better decision making considering the benefit and risks of it. Do not be threatened to take the risks and facing it as it would give benefits in return. To the franchisees, learn to evaluate the reason/s of acquiring a franchise and the investments made out of running the franchise business to assess and to know if it was really fulfilled and if really gained anything, but if was not, then franchising was not an option as it not fulfill the main reason of franchising a business and did not gained anything from it. Also, learn to track the path of the business and try to think of the possible problems and risks that may encounter in the long run of the business to be ready to face it and to be able to make a solution to lessen its effect in the business. And to the future researchers, continue the study to other district in the province of Cavite to widen the sample size of the same study.

In English text.