Kentucky Fried ChickenAn Example of Proper Franchise Management

Greg Bodenlos, Daly Guillermo, Annaliese Lafayette, Eileen Ng

A Two Company Comparison

Burger King in Australia

Decided to enter Australian market in 1971

Faced legal problems with trademark rights

Selected new name, “Hungry Jacks” from preexisting BKC and Pillsbury brands

Burger King or Hungry Jacks?

Hungry Jacks Emerges

Jack Cowin becomes primary franchisee for Burger King in Australia

Grows the franchise to own over 130 Hungry Jacks outlets

Currently owns 50 KFC outlets in Western Australia and the Northern Territory in addition to 300 Hungry Jack's outlets throughout Australia

What Went Wrong

Acquire the name rights when entered the market

Take proactive role in management of HJPL’s development

Enforce its rights under 1990 settlement agreement

Utilize having a great businessman like Jack Cowin on their team

Burger King failed to:

Kentucky Fried Chicken

Burger King Franchising

Allows franchisees to acquire a minimum of 5 restaurants

Hands-off management style

Prefer franchisees with previous experience

Training: ranges from 73 days to 7 weeks

Focus more on market penetration rather than relationship building with franchisees

KFC Franchising

Does not allow franchisees to purchase more than one store at a time

Hands-on management style

Look for franchisees with entrepreneurial spirit

Training: Minimum 6 months

Focus on building strong long term relationships with franchisees

Keys to Franchise Success