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This document compares the franchise management of Burger King and Kentucky Fried Chicken. Burger King failed to properly manage its franchise in Australia, not acquiring trademark rights when entering the market and taking a hands-off approach. In contrast, KFC takes a hands-on management style, only allowing franchisees one store at a time and focusing on long-term relationships through extensive training. Proper franchise management, as demonstrated by KFC, includes active involvement, protecting legal rights, and prioritizing partnership with franchisees.
441 Presentation
- 1. Kentucky Fried ChickenAn Example of Proper Franchise ManagementGreg Bodenlos, Daly Guillermo, Annaliese Lafayette, Eileen Ng
- 2. A Two Company Comparison
- 3. Burger King in AustraliaDecided to enter Australian market in 1971Faced legal problems with trademark rightsSelected new name, Hungry Jacks from preexisting BKC and Pillsbury brands
- 4. Burger King or Hungry Jacks?
- 5. Hungry Jacks EmergesJack Cowin becomes primary franchisee for Burger King in AustraliaGrows the franchise to own over 130 Hungry Jacks outletsCurrently owns 50 KFC outlets in Western Australia and the Northern Territory in addition to 300 Hungry Jack's outlets throughout Australia
- 6. What Went WrongBurger King failed to:Acquire the name rights when entered the marketTake proactive role in management of HJPLsdevelopmentEnforce its rights under 1990 settlement agreementUtilize having a great businessman like Jack Cowin on their team
- 8. Burger King FranchisingAllows franchisees to acquire a minimum of 5 restaurantsHands-off management stylePrefer franchisees with previous experienceTraining: ranges from 73 days to 7 weeksFocus more on market penetration rather than relationship building with franchisees
- 9. KFC FranchisingDoes not allow franchisees to purchase more than one store at a timeHands-on management styleLook for franchisees with entrepreneurial spiritTraining: Minimum 6 monthsFocus on building strong long term relationships with franchisees
- 10. Keys to Franchise Success
Editor's Notes
- #4: Burger King decided to enter the Australian market 1971The company faced legal problems with the trademark rights to the name Burger KingBK decided to choose a name that was from one of their preexisting BKC and Pillsbury BrandsHungry Jacks was chosen
- #6: Jack Cowin was the primary franchisee for BK in AustraliaHe owned over 130 Hungry Jacks outlets
- #7: They did not acquire the rights to the name when they entered the marketBKC did not take an active role in the management of HJPLs development until the 90s20 years after the brand had entered the marketBKC did not enforce its rights under the 1990 settlement agreementJack Cowin was unsupervised from 1990-1992, which made him feel like BKC did not care about the Australian marketBKC did not utilize having a great businessman like Jack Cowin on their team
- #9: Franchise ManagementBurger KingAllows franchisees to acquire a minimum of 5 restaurantsHands-off management stylePrefer franchisees with previous experienceTraining: ranges from 73 days to 7 weeksFocus more on market penetration rather than relationship building with franchisees