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Date Submitted: 09/20/2012 07:02 PM

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Angelica M. Agon

Shirlyn Joy M. Getes

Michelle B. Mendez

Patricia Ann Mora

Maechelle B. Restrivera


Mr. Alberto Aguilar

August 2012


Franchising is the practice of using another firm's successful business model. The word 'franchise' is of Anglo-French derivation - from franc - meaning free, and is used both as a noun and as a (transitive) verb. For the franchisor, the franchise is an alternative to building 'chain stores' to distribute goods that avoids the investments and liability of a chain. The franchisor's success depends on the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business .

History of Franchisor

According to dela Cruz (2009), the founder and the brain behind the success of the Zagu Philippines is Genevieve Lim.

| Lim was a young bubbly 25-year-old out-of-work fresh graduate in 1999 when she opened her first Zagu Shake kiosk in an |

|austere corner of a bowling center at Valle Verde in Quezon City. |

|She had just finished food science and technology at the University of British Columbia in Vancouver, Canada where she supported |

|herself as a barista for Starbucks. Back home, she tried to apply for a similar job also at Starbucks, but was told that they prefer |

|training and promoting people from within. Disappointed and bored, Genevieve toyed with the idea of starting a business and wondered if|

|her favorite drink while still a student in Canada might be it. She immediately returned to Canada to talk to suppliers and came back |

|with a bagful of supplies to start her pearl shake business....