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Costco

The Relationship Between the Franchisor and Franchisee
by

Elaine Chen

on 20 September 2012

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Transcript of Costco

M.L 498810299 Peggy
M.L 498810125 Brownie
M.L 498810414 Elaine Group Members Categories:
groceries, candy, appliances, television and media, automotive supplies, tires, toys, hardware, sporting goods, jewelry, watches, cameras, books, house wares, apparel, health and beauty aids, tobacco, furniture, office supplies and office equipment. What is Costco? A membership warehouse club “lower price and better values” 439 locations in 40 U.S. States & Puerto Rico;
82 locations in nine Canadian provinces;
22 locations in the United Kingdom;
9 locations in Taiwan;
8 locations in Korea;
13 locations in Japan;
3 location in Australia;
32 locations in 18 Mexican states Areas of operation Costco in Taiwan is joint venture by Kaohsiung President Group and operation by Costco Wholesale Corporation(US).

Franchisor: Costco Wholesale Corporation(US)

Franchisee: Kaohsiung President Group Costco in Taiwan
1. Reputation:
high chance of success
existing customers and suppliers
existing business record
2. Less Planning:
interior design
necessary equipment
3. Experienced employees:
Taiwan’s Top Manager
Pros and Cons
of the Franchisee
1. Existing problems
crowded
2. Poor business image
poor quality of current employees
3. Modernization required
interior design
4. Poor business location Pros and Cons
of the Franchisee Types of Arrangement Product and Trade Name Franchising

Multi-Brand Franchising Encroachment
One-sided contract Government
Concern Territory (73,000 to 205,000)

Requiring the Appearance

Restricting goods/ service

Requiring Specific Operating Hours Franchisor
Controls
Franchisees PROS CONS 107.200 in U.S.
120.292 in the world wild Economic Impact Thank You For Your Listening FRANCHISOR
&
FRANCHISEE
Full transcript