Subways and the challenges of franchising in china
Question 1
Intellectual property protection was another problem. There was weak intellectual property rights, and an inadequate legal framework affecting the foreign businesses. The challenges were for the subway to create its type of sandwich it had to acquire intellectual property rights which were difficult to get. The other challenge was its tax regulation which was too high making subway in a position of the threat of its intellectual property rights. However, they could have created relationships with the government in taking action against imitators. They would have created awareness through campaigns and create global subway image against the imitators (Hill, 2015).
Question 2
Master franchise has to be compensated for half of the initial franchise per the pieces sold in return the regular franchise is offered with store equipment’s, training of personnel, the recipe and the intellectual property there for every piece sold they are rewarded. However, the method is satisfactory though there is room for improvements like is they could be some additional rewards for achieving the targets, additional champagnes, and more internalization (Kossof, 2014).
(I.C. RDS 3098)