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Ciaran Corrigan, Daniel Allison, Niamh Ferguson
And its future in franchising.
TBR Global Chauffeuring
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Ciaran Corrigan, Daniel Allison, Niamh Ferguson
And its future in franchising.

TBR Global Chauffeuring

Brief

  1. The best location to initially roll out this model​?
  2. What commercial model should be best utilised?​
  3. What would be the revenue streams for this model?​
  4. What needs to be considered during the implementation stage?​
  5. What risks would be associated with the implementation stage and how would TBR overcome them?
Key Points to Consider:

San Francisco

Los Angeles

Boston

New York

London

Paris

Frankfurt

Dubai

Singapore

Shanghai

Location?

After our discussion, we conducted research into several cities. Considering financial centres, events, travel links and local law.

Launching in Los Angeles

American Market

$800 Franchise Fee.

New emissions zone.

Financial and business hub.

Huge events such as the LA Olympics 2030 and the United World Cup 2026 along with expos.

Travel hub with 88 million passengers travelling to LAX alone (2019).

Boston provides ease of access.

Low VAT (9.5%) and Corporation Tax (8.84%).

LA is a huge market with 50 million visitors a year and 1% using private hire.

Based upon our criteria we felt the United States along with LA was a good fit along with providing tangible benefits.

Why Los Angeles?

  • Some of the top competition are Imperial Ride, Blacklane, and Winn Limousine.
  • TBR however, have a proven track record and a known name.
  • The franchise model will provide a good oppurtunity for expansion and competition.
  • There is a significant space for expansion with plenty of options.

Competition

(£20,304)

4%

10%

$25,000

An annual marketing fee would be charged by TBR

Marketing Costs

An annual percentage of revenue would be taken from each franchisee

Percentage of Revenue

An initial lump sum would be paid by the franchisee

Lump Sum

There are three main revenue streams that TBR would look to use/

Revenue Streams

(£33,950)

Revenue

Revenue in Year 1

Based on having 1 franchisee

$41,800

Costs

4.Administrative

Miscellaneous costs.

3. Chauffeur

Items the chaffeur will need.

2.Goods for Car Interior

Items needed for inside the cars.

1. Compliance Costs

Tax and other government considerations.

(£2,030)

Costs

Costs in Year 1

Based on having 1 franchisee

$2,500

(£30,051)

Profit

Revenue in Year 1

Based on having 1 franchisee

$37,000

(£1,218)

Advertising Costs

$1500

Franchises

Franchises

Advertising

Ways to gain the attention of prospective franchisees:

  • Roadshows
  • Attend franchiee events
  • TBR Website
  • Franchise marketing agency

Timeline

Potential Issues

4.Channel Ambiguity

Which responsibilities belong to each party?

3.Control

There can be tensions around empowerment vs contol.

2.Quality

There can be difficulty controlling quality and consistency across outlets.

1.Conflicts

Conflicts can arise between franchisees and franchisors over objectives and performance.

Partnering StrategiesThis strategy has the highest potential. This includes aligning goals, consultation, and cooperation.

Empowerment StrategiesControl is in the hands of the franchisee and TBR provides a support system

Control StrategiesStrict measurement and reviews.

To tackle any challenges in the implimentation stage TBR can use control, empowerment, and partnering strategies to help to ensure clear communication.

Franchisee Management Strategies

Overcoming Potential Issues

4.Channel Ambiguity

Which responsibilities belong to each party?

3.Control

There can be tensions around empowerment vs contol.

2.Quality

There can be difficulty controlling quality and consistency across outlets.

1.Conflicts

Conflicts can arise between franchisees and franchisors over objectives and performance.

Thank you!

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