TBR

TBR Global Chauffeuring

And its future in franchising.

Ciaran Corrigan, Daniel Allison, Niamh Ferguson

Brief

Key Points to Consider:

1. The best location to initially roll out this model​?
2. What commercial model should be best utilised?​
3. What would be the revenue streams for this model?​
4. What needs to be considered during the implementation stage?​
5. What risks would be associated with the implementation stage and how would TBR overcome them?

Location?

After our discussion, we conducted research into several cities. Considering financial centres, events, travel links and local law.

London

Frankfurt

Boston

Paris

San Francisco

New York

Shanghai

Dubai

Los Angeles

Singapore

American Market

Launching in Los Angeles

Why Los Angeles?

Based upon our criteria we felt the United States along with LA was a good fit along with providing tangible benefits.

Huge events such as the LA Olympics 2030 and the United World Cup 2026 along with expos.

Travel hub with 88 million passengers travelling to LAX alone (2019).

LA is a huge market with 50 million visitors a year and 1% using private hire.

Boston provides ease of access.

Low VAT (9.5%) and Corporation Tax (8.84%).

Financial and business hub.

New emissions zone.

$800 Franchise Fee.

Competition

• Some of the top competition are Imperial Ride, Blacklane, and Winn Limousine.
• TBR however, have a proven track record and a known name.
• The franchise model will provide a good oppurtunity for expansion and competition.
• There is a significant space for expansion with plenty of options.

Revenue Streams

There are three main revenue streams that TBR would look to use/

Lump Sum

Percentage of Revenue

Marketing Costs

An annual percentage of revenue would be taken from each franchisee

An initial lump sum would be paid by the franchisee

An annual marketing fee would be charged by TBR

$25,000

10%

4%

(£20,304)

Revenue

Revenue in Year 1

$41,800

(£33,950)

Based on having 1 franchisee

Costs

3. Chauffeur

1. Compliance Costs

Items the chaffeur will need.

Tax and other government considerations.

2.Goods for Car Interior

4.Administrative

Miscellaneous costs.

Items needed for inside the cars.

Costs

Costs in Year 1

$2,500

(£2,030)

Based on having 1 franchisee

Profit

Revenue in Year 1

$37,000

(£30,051)

Based on having 1 franchisee

Advertising

Ways to gain the attention of prospective franchisees:

• Roadshows
• Attend franchiee events
• TBR Website
• Franchise marketing agency

Advertising Costs

Franchises

Franchises

$1500

(£1,218)

Timeline

Potential Issues

3.Control

1.Conflicts

There can be tensions around empowerment vs contol.

Conflicts can arise between franchisees and franchisors over objectives and performance.

4.Channel Ambiguity

2.Quality

There can be difficulty controlling quality and consistency across outlets.

Which responsibilities belong to each party?

Franchisee Management Strategies

To tackle any challenges in the implimentation stage TBR can use control, empowerment, and partnering strategies to help to ensure clear communication.

Control Strategies Strict measurement and reviews.

Empowerment Strategies Control is in the hands of the franchisee and TBR provides a support system

Partnering Strategies This strategy has the highest potential. This includes aligning goals, consultation, and cooperation.

Overcoming Potential Issues

3.Control

1.Conflicts

There can be tensions around empowerment vs contol.

Conflicts can arise between franchisees and franchisors over objectives and performance.

2.Quality

4.Channel Ambiguity

There can be difficulty controlling quality and consistency across outlets.

Which responsibilities belong to each party?

Thank you!