VIABILITY OF KIOSK FRANCHISING AS A BUSINESS
MODEL OF SIOMAI KING FRANCHISEE IN
QUEZON CITY
A Thesis
Presented to the Faculty of
the College of Hospitality, Tourism,
Business, Accountancy and Management
Bestlink College of the Philippines
In Partial Fulfillment
of the Requirements for the Degree
Bachelor of Science in Business Administration
Major In Marketing Management
MARY ANGEL D. CLOSA
MARLYN JOY OCHAVEZ
APOL PILAN
MARK JOSEPH A. TOLENTINO
November 2022
2
APPROVAL SHEET
This thesis entitled VIABILITY OF KIOSK FRANCHISING AS A
BUSINESS MODEL OF SIOMAI KING FRANCHISEE IN QUEZON CITY,
prepared and submitted by Mary Angel D. Closa, Mary Joy Ochavez,
Apol Pilan, and Mark Joseph A. Tolentino, in partial fulfilment of the
requirements for the degree of Bachelor of Science in Business
Administration major in Marketing Management, has been examined and
is recommended for acceptance and approval for Oral Defense.
REYNOLD R. BANGALISAN, LPT
Adviser
__________________________________________________________
THESIS REVIEW PANEL
Approved by the Committee on Oral Examination with a grade of 1.25.
ERNILSON C. CAINDOY, MAIP, RPm EUGENIO P. BAYANI JR., MBA
Member Member
DANA FRANCE H. IGNACIO, Ph. D
Chairperson
Accepted and approved in partial fulfilment of the requirements for
the degree of Bachelor of Science in Business Administration, major in
Marketing Management.
RYAN M. IGNACIO, Ph. D
Dean, College of Hospitality Tourism, Business, Accountancy and
Management
Date of Final Defense: November 19, 2022
3
ACKNOWLEDGMENT
The researchers would like to express their heartfelt thanks and
gratitude to the following persons who, in one way or another, has
contributed much, and extended willingness and support needed to make
this research possible:
Dr. Maria M. Vicente, President/CEO of Bestlink College of the
Philippines, for her generosity and kind heart in establishing this institution
and giving opportunities to those less fortunate students to continue their
studies and pursue their dreams;
Ms. Edith M. Vicente, Executive Vice President, for providing the
needed information to complete this research;
Dr. Charlie I. Cariño, Vice President for Academic Affairs, for his
support and encouragement to make this thesis writing possible;
Engr. Diosdado T. Lleno, Vice President for Administration and
Finance, for his words of encouragement and motivation;
Ms. Joy Evelyn A. Ignacio, College Associate Research Head, for
her good heart to extend her help needed by the researchers;
Dr. Ryan M. Ignacio, Dean of College of Hospitality Tourism,
Business, Accountancy and Management, for his critical appraisal and
highly valuable suggestions that have aided in the process of this research;
4
Mr. Jeremiah P. Palmiano, program head of Bachelor of Science
in Business Administration, for his unending support for the academic
growth of the researchers;
Mr. Reynold R. Bangalisan, thesis adviser, for his patient
supervision in guiding the researchers in preparation of this manuscript;
Panelists, Mr. Eugenio P. Bayani Jr., Mr. Ernilson C. Caindoy,
and Dr. Dana France H. Ignacio, who extended their effort and time to be
able to constructively criticize this thesis and share their knowledge with
them to deepen and widen their needed information;
Respondents, who cooperated and spent time in answering
questionnaires, and made it possible to accomplish this research;
Families and Friends, for all the financial and moral support that
have enabled the researchers to triumph all the challenges, especially
during the lowest time that served as their inspiration to complete this
study; and
Above all, to the Almighty God, for the strength and knowledge that
were used for the accomplishment of this research journey.
THE RESEARCHERS
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DEDICATION
First, the proponents dedicate this project to our Almighty God, who
gave us strength and knowledge to our everyday life.
To our parents who supported us they gave their love especially
during the times the proponents are working on this project.
To all professors who taught and shared their knowledge for us, that gave
ideas and strength for the proponents to work on this project.
Lastly, to the panels who shared their comments to the proponents
in the future.
THE RESEARCHERS
MARY ANGEL D. CLOSA
MARLYN JOY OCHAVEZ
APOL PILAN
MARK JOSEPH A. TOLENTINO
6
ABSTRACT
Title: VIABILITY OF KIOSK FRANCHISING AS A
BUSINESS MODEL OF SIOMAI KING
FRANCHISEE IN QUEZON CITY
Authors: MARY ANGEL D. CLOSA
MARLYN JOY OCHAVEZ
APOL PILAN
MARK JOSEPH A. TOLENTINO
Degree: Bachelor of Science in Business Administration
Major: Marketing Management
Date of Completion: November 2022
The purpose of this study is to determine the viability of kiosk
franchising as a business model of Siomai King in terms of product, pricing,
promotion and place. The study utilized a descriptive research method
which has a total of fifteen (15) franchisee respondents a purposive
sampling techniques. From the results of this study, it reveals that the
viability of kiosk franchising as a business model, place have the highest
7
rank and pricing have the lowest rank; the viability of kiosk franchising in
terms of product, pricing, promotion and place evaluated as “very strongly
agree”; the problems encountered of adopting kiosk franchising is not as
much decision-making power since everything in a kiosk franchising is
planned. Even though it is your business you still need to consult the
franchisor for possible changes; the proposed Improvements to the kiosk
franchising business model such as choosing a franchise location for ideal
success, building a strong franchise brand, advertising strategy that
reproduce with the main brand and local audience in different location. This
study recommended that continued operation on kiosk franchising to
sustain the viability of Siomai King franchise as a business model. Proper
business placement is very important. It must be accessible to the market
to reach a wide range of consumers. Creating a decent amount of
promotion is enough especially if the product is already well known. Stable
pricing should be established to avoid confusion among other kiosk
franchised businesses. Uniqueness of the product is an important factor
especially now that there is a lot of competition in the market. The
researchers recommend this study to all aspiring franchisees, because this
is focused on testing the viability of kiosk franchising when placed in the
market. All factors have been stated and tested.
8
TABLE OF CONTENTS
Page
TITLE i
APPROVAL SHEET ii
ACKNOWLEDGMENT iii
DEDICATION v
ABSTRACT vi
TABLE OF CONTENTS viii
LIST OF TABLES x
LIST OF FIGURES xi
LIST OF APPENDICES xii
Chapter
1 INTRODUCTION
Background of the Study 12
Related Literature and Studies 13
Theoretical Framework 19
Conceptual Framework 20
Statement of the Problem 21
2 METHODS
Research Design 26
Respondents of the Study 27
9
Sampling Technique 27
Instrument Used in the Study 28
Validation of the Instrument 30
Administration and Retrieval of the Questionnaires 30
Statistical Treatment of Data 30
REFERENCES
APPENDICES
CURRICULUM VITAE
10
LIST OF TABLE
Table
1 Viability of Kiosk Franchising in terms of Product
2 Viability of Kiosk Franchising in terms of Pricing
3 Viability of Kiosk Franchising in terms of Promotion
4 Viability of Kiosk Franchising in terms of Place
5 Summary Table on the Viability of Kiosk Franchising
6 Possible Problems Encountered of Adopting Kiosk Franchising
11
LIST OF FIGURES
Figure
1 Theory of the Impact of Indormaret
Operated on Traditional Small Kiosk Sales
2 Conceptual Model of the Study
3 Respondents of the Study Area and
Business Existence
4 Validation of Retrieval Process
12
LIST OF APPENDICES
Appendix A Letter Permit to Conduct the Study
Appendix B Instrument
Appendix C Documentation
Appendix D Certificate of Originality
Appendix E Certificate of Grammarian
Appendix F Statisticians Certificate
Appendix G Grammarian Curriculum Vitae
Appendix H Statisticians Curriculum Vitae
Appendix I Research Adviser Curriculum Vitae
Appendix J Researchers Curriculum Vitae
13
Chapter 1
INTRODUCTION
This chapter entails the background of the study, related literature,
and studies, theoretical framework, conceptual framework, statement of
the problem, scope and delimitation of the study, the significance of the
study, and definition of terms.
Background of the Study
Jonathan So and Carlito Macadangdang Jr., two businessmen who
identified the market potential of the food franchise industry in the nation
and decided to launch their own franchising company, are the owners of
Siomai King. JC Franchising, Inc. is a Philippine-based company that was
founded in 2006. The siomai or their Siomai King is the most well-known of
the several franchise items it provides to beginning Filipino business
owners. Since it was the first to think of serving five (5) pieces of siomai in
a single dish, this franchise's name was initially referred to as "Hari ng
Siomai" (King of Siomai). With the various tastes, including the Japanese,
Shanghai, and Hongkong siomai, one of these choices can serve as a
quick, tasty and definitely an affordable meal that one can indulge into
anytime of the day.
A kiosk is a little, transient, standalone booth that's utilized for
marketing in busy places. A kiosk is typically staffed by one or two people
14
who work to draw attention to the booth in order to get new clients. Retail
kiosks offer businesses a low-cost alternative to advertising their goods or
services, and they are typically found in shopping malls or on busy city
streets with plenty of foot traffic. Kiosks draw a lot of traffic without costing
a lot of money. You can also place your kiosk close to a larger retailer
whose clientele you want to reach for quick and efficient exposure and
sales.
This study came up with the researcher to determine the viability of
kiosk franchising as a business model of Siomai King franchise in Quezon
City. This study aims at the kiosk franchising operated in terms of, planning,
services, and process it also includes the kiosk franchising as a business
model viable in terms of product, promotion, pricing, and place.
Related Studies
The collected related studies that are needed to adapt by
enlightening the results on the kiosk franchising operated, kiosk franchising
as a business model, and possible problems may be encountered of adapt
kiosk franchising.
Kiosk Franchising Operated
Planning. Rahadian (2017), pointed out that a franchise is one of
the business ideas used by parent firms to earn money, grow their clientele,
or both in order to achieve greater success. A strong business plan will
boost a franchise's chances of success. A franchise should be able to
15
duplicate successful business models in companies that take on different
shapes.
Services. Chané (2022) pointed out that It is now well
acknowledged that improving service quality is a key factor in boosting an
industry's and organization's competitiveness. If the level of service
provided falls short of customers' prior.
Process. González-Díaz (2020) said that exploratory interviews
with franchisees in Brazil shed light on the thinking behind and steps taken
in the development of franchisees' multi-brand, multisystem, and multirole
portfolios. Franchisees in Brazil who own stakes in many systems/brands
seek to diversify their portfolios while maintaining control over the units
under their watch.
Kiosk Franchising as a Business Model
Product. Ahmad (2019) said that the Al-Bastaki used novel coffee
goods and distribution strategies to compete in Dubai's overcrowded coffee
industry. Al-Bastaki made a point of highlighting the sale of camel products
from a moving truck. It was the first mobile café in the UAE, and its tagline
was "wherever you are." He also talks about the difficulties the project
encountered in obtaining the required permits for the coffee truck and
marketing the unappealing, salty beverage camel milk.
Pricing. Fairbourne (2017) stated that in Micro-franchising
programs are typically modular in that they are made up of discrete,
16
interconnected components that can be added to or subtracted from to
improve or simplify functionality or capabilities as the franchisees'
businesses grow in order to achieve quality and consistency with little
involvement from the core organization. Additionally, a microfranchise
needs to be micro-scalable, or doable and repeatable with incredibly few.
Promotion. Alessandro (2018) points out the expanded its market
since starting as a single little booth in San Bernardino by offering new
goods and technologies that altered how people eat. Perheravintolat Oy's
current condition is reviewed, and distinctions with its primary Finnish rivals
are outlined in an examination of those differences. The goal was to come
up with fresh concepts for a fictitious periodic marketing campaign and a
potential new product that may persuade more people to dine at
McDonald's rather than a rival restaurant.
Place. Wilson (2021) said that social sector franchising is emerging
as a viable strategy to amplify the effects of social entrepreneurs, while
being underfunded and in its infancy. Commercial franchising has a track
record of spurring company growth. Entrepreneurs with a social
conscience have started using this strategy in an effort to achieve
analagous large-scale growth and so exponentially increase their social
impact.
Problems May be Encountered by Adapt Kiosk Franchising.
Prætorius (2021) stated that the four significant advancements have been
17
made to our comprehension of the scaling up process. First, we show that
the priority social businesses place on easing internal restrictions or
consumer constraints determines how entrepreneurial changes are made.
Second, we demonstrate how dynamic prioritizing of restrictions affects
how firms allocate resources and employ operational procedures from the
time of establishment until market penetration. Third, we show how
companies can have a "deep" impact by increasing the number and variety
of their operations, or a "wide" impact by broadening their membership
base and/or geographic scope by adopting resource mobilization
techniques and operating routines. Finally, our research demonstrates how
companies construct distinct sequences of normative, regulatory, and
cognitive institutional legitimacy elements as a result of prioritizing internal
or consumer constraints.
Related Literature
The collected related literature builds the concept of the proposed
enhanced business model of kiosk franchising.
Proposed Improvement Business Model
Kotarba (2018) pointed out that the goal of this article is to cite
significant effects of digital transformation on an organization's business
model. It offers a realistic assessment of the situation at hand and the
elements that influence changes in business model. There are two types
of changes: proactive changes where the organization actively shapes its
18
future strategies through investments and optimizations, and reactive
changes where unanticipated and unfavorable changes negatively impact
the business model and necessitate restructuring or emergency
operations. As a result, business model modifications in response to digital,
technological, and social changes can be seen as a shift to a new
organizational structure that is better suited for operating in the digital
economy, in relationships with digital clients and partners, as well as with
the growing use of digital assets.
Relevance of the Reviewed Related Literature and Studies to the
Present Study
Kiosk Franchising Operated. This study is relevant provided the
necessary information towards kiosk franchising operated in terms of
planning, services and process that will serve as the guide and support of
this paper. A franchise will have more success chances if it has a strong
business concept. A good business process for franchising should be able
to imitate other types of firms' successful business models. This could have
a harmful impact on the franchise's competitiveness and survival.
Kiosk Franchising as a Business Model. This study will pin down
the drivers of success for this business model in terms of product, pricing,
promotion and place. The goal was to come up with fresh concepts for a
fictitious periodical marketing campaign and a potential new product that
19
may persuade more potential customers to eat at kiosk franchises rather
than a rival store.
Possible Problems Maybe Encountered by Adapt Kiosk
Franchising. This study is relevant that the priority social businesses place
on easing internal restrictions or consumer constraints determines how
entrepreneurial changes are made. Prioritizing restrictions affects how
firms allocate resources and employ operational procedures from the time
of establishment until market penetration.
Proposed Improvement Business Model. This related literature is
relevant to this study as it emphasized that the purpose of this essay is to
show significant effects of digital transformation on an organization's
business model. It offers a realistic assessment of the situation at hand and
the elements that influence changes in business model.
Theoretical Framework
Bovee and Thill (2008) titled “The Impact of Indomaret Operated on
Traditional Small Kiosk Sales in Manado City” Explain that a franchise is a
commercial arrangement in which one company is granted the right to sell
the supplier's goods or services (franchisor). An agreement in which the
creator of a company product or operating system allows another business
owner to sell the goods and/or use the operating system on the creator's
behalf is referred to as a franchise. A franchise is a company or individual
20
that has been granted legal authorization by the product's or system's
original owner to run a business franchise system or market a product. The
process of conceptualizing, pricing, promoting, and disseminating
concepts, products, and services in order to establish and retain
partnerships is known as marketing.
Figure 1. Theory of The Impact of Indomaret Operated on
Traditional Small Kiosk Sales
Conceptual Framework
This study utilized the INPUT-PROCESS-OUTPUT in conducting
the research.
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Figure 2. Conceptual Model of the Study
This study determines the Viability of kiosk franchising as a business
model of Siomai king franchise in Quezon City.
Figure 2 shows the input of the study consists of possible problems
encountered of adopted kiosk franchising and proposed enhanced
business model of kiosk franchising.
The process of the study includes the kiosk franchising operated in
terms of planning, services and process. It also includes the kiosk
franchising as a business model viable in terms of pricing, promotion and
place.
The output of the study is about an action plan for possible problems
encountered of adopted kiosk franchising and enhanced business model
of kiosk franchising.
22
Statement of the Problem
This study aimed to answer the viability of kiosk franchising as a
business model of Siomai King franchise in Quezon City.
Specifically, this study seeks to answer the following questions:
1. How does kiosk franchising operated in terms of:
1.1. planning;
1.2. services; and
1.3. process?
2. How does the kiosk franchising as a business model viable in terms of:
2.1. product;
2.2. pricing;
2.3. promotion; and
2.4. place?
3. What are the possible problems that may be encountered in adopting
kiosk franchising?
4. What are the proposed improvements to the kiosk franchising business
model?
Scope and Delimitation of the Study
This study limited to Siomai King Franchise in (Lagro, Robinson
Fairview, Novaliches, Bayan, Baesa, Tandang Sora, Munoz, Litex,
Batasan, Bagong Silanganan, Sandigan, Dona Carmen, Payatas,
23
Trinoma, Sauyo, Commonwealth) Quezon City. This study also limits its
scope on the viability of kiosk franchising as a business model in terms of
product, pricing, promotion, place.
Significance of the Study
This study will be beneficial to the following group of persons:
Students. The results of this study will be beneficial to the
Students. It can give new learning and knowledge from the main topic and
they can apply it to their lives.
Administration. It is also beneficial to the school administration to
add more books in the library as a source of new information for the
students who will conduct business research.
Business Owner. The result of this study helps the business
owner to improve the promotional tools by kiosk franchising to gain more
potential customers and help to reach the target market.
Employees. This research will help employees in seeking ways to
improve their performance to promote a product using kiosk franchising as
their promotional tools.
Entrepreneurs. The entrepreneurs will benefit from this research.
since doing so will help them decide what promotion to apply for.
their industry. The findings of this study will aid them in producing more
effectivesales for the advancement.
24
Researchers. As a student taking a business course, this study
will help the researcher. It will serve as a basis or another learning about
effective advertisement that a company or business can use in the future.
Future Researchers. It may gain insights on how to develop
business research. Moreover, the study may serve as a reference as they
can retrieve information that they might use for academic purposes, and
may gain knowledge for their future research.
Definition of Terms
For a better understanding of this study, the terminologies used
are defined either theoretically or operationally.
Business model. Provides information about an organization's
target market, that market's need, and the role that the business's products
or services will play in meeting those needs.
Franchising. A business marketing strategy to cover maximum
market share. Franchising is a business relationship between two entities
wherein one party allows another to sell its products and intellectual
property.
Kiosks. Are small, temporary booths placed in areas with high foot
traffic that are used by businesses to reach their customers in a more
simple and informal manner.
25
Product. An object, system, or service made available for consumer
use as of the consumer demand, it is anything that can be offered to a
market to satisfy the desire or need of a customer.
Place. Acts as an anchor point to your idea which helps you in
sustaining in this competitive food market.
Planning. Will guide an entrepreneur/franchisor in how to handle
and manage the business and company.
Pricing. A consumption-based pricing model in which customers
are only charged when they use a product or service.
Promotion. Is to ensure that customers are aware of the existence
and positioning of products.
Service. Is any activity or benefit that one party can offer to another,
which is essentially intangible and does not result in the ownership of
anything.
Viability. Franchise viability risk develops when a company takes
steps to protect its reputation even if it is not required by law to do so, and
these steps result in unanticipated cash outflows.
26
Chapter 2
METHODS
This chapter presents the research design, respondents of the
study, sampling technique, instrument used, validation of the instrument,
administration and retrieval of the instruments, and statistical treatment of
data.
Research Design
This study utilized a descriptive research method of design.
The researchers chose this method since this study is more focused
on the observation of the success rate of the Siomai King franchise as a
business model.
Nassaji (2015) the aim of descriptive study is to outline a
phenomenon's features. This study is more interested in what occurred
than in how or why it occurred. As a result, technologies for observation
and surveying are frequently utilized to collect data.
The relevance of this method is that it will describe and investigate
the variables of this study accurately and systematically. This is crucial
because the extensive information provided by those who have experience
with the franchising business model can be very helpful in understanding
complex systems and can show how the implementation of kiosk
27
franchising is actually carried out in the real world, which ultimately results
in change.
Respondents of the Study
This study is limited to fifteen (15) Siomai King franchises in Quezon
City as this paper will determine how viable this model is.
Figure 3: Respondents of the Study Area and
Business Existence
28
Figure 3 shows the respondents of the study area and business
existence. It’s indicate that Lagro with one (2) years and one (I) month of
business existence, Robinson Fairview with one (1) year and three (3)
months of business existence, Novaliches Bayan with three (3) years and
eight (8) months of business existence, Baesa with two (2) years and nine
(9) months of business existence, Tandang Sora with four (4) years and
(1) month of business existence, Munoz with two (2) years and two (2)
months of business existence, Litex with three (3) years and two (2) month
business existence, Batasan with two (2) years and one (1) month of
business existence, Bagong Silanganan with three (3) years and six (6)
months of business existence, Sandigan with three (3) years and one (1)
month of business existence, Payatas with four (4) years and one (1) month
of business existence, Trinoma with two (2) years and five (5) month of
business existence, Sauyo with three (3) months and one (1) month of
business existence, Commonwealth with one (1) year and one (1) month
of business existence, and Dona Carmen with two (2) years and seven (7)
months of business existence. Its shows that the Area of the respondents
is viable.
29
Sampling Technique
This study utilized the purposive sampling technique.
By recruiting respondents who are currently operating the said business
and gathering all their insights and experiences surrounding the use of the
franchising model, researchers choose this type of sampling technique to
have in-depth and detailed information about the success of franchising as
a business model.
Crossman (2020) pointed out that a non-probability sample called
a purposive sample is chosen based on demographic characteristics and
the study's goal. Convenience sampling is different from purposeful
sampling, which is often referred to as subjective, judgmental, or selective
sampling.
The researcher can collect qualitative replies through the use of
purposeful sampling, which produces more insightful and accurate
research findings. The findings are applicable to the research environment
since the researcher only gathers data from participants who best fit the
research question.
Instrument Used
This study utilized a documentary analysis, interview and
questionnaire as instruments in the study conducted.
30
Documentary Analysis. This instrument is used to determine the
statement of problem number one (1) which is how kiosk franchising
operated in terms of planning, services and process. Also, it determined
the statement of problem number four (4) which is the proposed
improvements to the kiosk franchising business model?
Questionnaire. This instrument is used to determine the Siomai
king employee’s answer regarding the statement of the problem number
two (2) which is how is the kiosk franchising as a business model viable in
terms of product, pricing, promotion and place.
Interview. This instrument is used to determine the respondent’s
response on possible problems that may be encountered of adopted kiosk
franchising.
Construction of the Instrument
The scaled questions are the type of survey questionnaires that
were used in this study. The researcher provided instructions on how the
questionnaire should be answered by the respondents. The researchers
use simple language and limit the possible choices.
The researchers reviewed literature and papers relating to the
study‘s subject to determine the variables and indicators to be employed.
Based on these readings, the researchers will draft the first draft of the
questionnaire. This draft will be shown to the researchers adviser, who
31
will make some revisions to improve the questionnaire. When the final
was reproduced, the researchers evaluated all of these questions.
This study uses a survey questionnaire that has 4 different parts.
Part 1 of the questionnaire includes that the kiosk franchising
operated in terms of planning, services, and process.
Part 2 includes the kiosk franchising as a business model viable in
terms of product, pricing, promotion, place.
Part 3 entails on what possible problems may be encountered of
adopted kiosk franchising.
Part 4 entails on what are the proposed improvements to the kiosk
franchising business model.
Validation/Administration and Retrieval Process
(Bangalisan, 2022)
Figure 4. Validation of Retrieval Process
32
Figure 4 shows the Validation of Retrieval Process indicates how
the survey questionnaire of the researchers form. Phase 1 shows the
construction of a survey questionnaire followed by checking the adviser
and then proceeding for validation of a professional or research expert
followed by the grammarian. Phase 2 indicated the letter to conduct the
study and if the respondents approved the letter, proceed to the pilot testing
and lastly the administration.
Statistical Treatment of Data
This study utilized the following statistical tools to be used:
1. Frequency and Percentage. It is used to determine the
respondents on the viability of kiosk franchising as a business
model in terms of product, pricing, promotion and place. It also
determined the possible problem may be encountered to adopt
kiosk franchising.
Formula:
Where:
(%) = Percentage
f = Frequency
33
n = Total Number of Respondents
2. Mean. It is used to assess the viability of kiosk franchising as a business
model in terms of high operating cost, less control over the brand, limited
decision power and brand dilution.
Formula:
𝑋 = 𝛴𝑥/𝑛
Where:
x = Computed Mean
Σ f𝑥 = summation of frequency and response
n = total Number of respondents
Description Mean Interpretation Rating
Scale
If the statement is valid to be viable in
3.26-4.00 Very Strongly 4
kiosk franchising as a business model
Agree
If the statement is valid enough to 2.51-3.25 Strongly Agree 3
viable in kiosk franchising as a
business model
If the statement is not valid enough to 1.76-2.50 Agree 2
be viable in kiosk franchising as a
business model
If the statement is not valid at all to be 1.00-1.75 Disagree 1
viable in kiosk franchising as a
business model
34
Chapter 3
RESULTS
This chapter presents the tables and text (presented in the same
order) as the statement of the problem answered and the analysis of the
data.
1. Operated process of Kiosk Franchising
Based on the manual of Franchising Guide International Bureau of World
Intellectual Property Organization (WIPO)
1.1. Planning;
*The franchisor will grant the franchisee authorization to manufacture
and sell products under the marks of the franchisor.
*The franchisor (or someone else on his behalf) manufactures
the product and sells it to the franchisee’s
*The franchisee’s sell the product to customers, under the
franchisor’s trademark.
Graph 1.1 shows the operated process of kiosk franchising in terms
of planning that the franchisor will grant the franchisee authorization to
manufacture and sell products under the marks of the franchisor, also the
franchisor manufactures the product and sells it to the franchisees, and
lastly the franchisee’s sell the product to customers, under the franchisor’s
trademark.
35
1.2 Process;
*Franchisor is responsible for selecting or approving the site of the
franchised unit, constructing a building on the site and setting up.
*Stocking the building and eventually opening the franchised unit.
*Provide a reasonable schedule up to the date when the building will
be ready for occupancy.
*The franchisee has paid an initial fee and commitments to
purchase equipment or hire workers.
*Be advised as to how soon the franchised unit will be ready to
operate, so that the commitments can be met on time
Graph 1.2 shows the operated process of kiosk franchising in terms
of process. First, franchisor is responsible for selecting or approving the
site of the franchised unit, constructing a building on the site and setting
up. Second, stocking the building and eventually opening the franchised
unit. Provide a reasonable schedule up to the date when the building will
be ready for occupancy. Also, the franchisee has paid an initial fee and
commitments to purchase equipment or hire workers. Lastly, be advised
as to how soon the franchised unit will be ready to operate, so that the
commitments can be met on time.
1.3 Service;
*The franchisor has a strong interest in ensuring that the franchisee
meets a minimum level of quality of the finished product.
*The franchisor develops a certain service which is to be rendered by
the franchisee under the terms of the franchise agreement, to his
customers.
36
Graph 1.3 shows the operated process of kiosk franchising in terms
of service that the franchisor has a strong interest in ensuring that the
franchisee meets a minimum level of quality of the finished product. The
franchisor develops a certain service which is to be rendered by the
franchisee under the terms of the franchise agreement to his customers.
2. Viability of Kiosk Franchising as a Business Model
2.1 Product
Table 1 below presents the extent of Viability of Kiosk Franchising
in terms of product. It also contains 5 Indicators, weighted mean, ranking
and the Interpretation of its Indicators.
Indicator 1 obtained the weighted mean 3.53 which falls to the
Interpretation level Very Strongly Agree. This shows that provides a
uniqueness of the product to offer to the target market and makes the
products stand out from the crowd
37
Table 1. Viability of Kiosk Franchising in terms of Product
Indicators Mean Interpretation Ra
nk
*Provides a uniqueness of the product
to offer to the target market and makes 3.53 Very Strongly 1.5
the products stand out from the crowd. Agree
*It is an advantage to own a popular or 3.67 Very Strongly 4
widely known kiosk franchising product Agree
in the market.
*Kiosk franchise already tried and 3.87 Very Strongly 5
tested the product. Agree
*Having a kiosk business is an edge 3.53 Very Strongly 1.5
among competitors because of the Agree
brand name.
*It is possible to have loyal customers 3.60 Very Strongly 3
since this is a franchised business. Agree
Composite Mean 3.64 Very Strongly
Agree
Legend:
Mean Scale Descriptive Interpretation
3.26-4.00 Very Strongly Agree
2.51-3.25 Strongly Agree
1.76-2.50 Agree
1.00-1.75 Disagree
Indicator 2 obtained the weighted mean 3.67 which falls to the
Interpretation level Very Strongly Agree. This shows that It is an advantage
to own popular or widely known kiosk franchising products in the market.
Indicator 3 obtained the weighted mean 3.87 which falls to the
Interpretation level Very Strongly Agree. This shows that the Kiosk
franchise already tried and tested the product.
38
Indicator 4 obtained the weighted mean 3.53 which falls to the
Interpretation level Very Strongly Agree. This shows that Having a kiosk
business is an edge among competitors because of the brand name.
Indicator 5 obtained the weighted mean 3.60 which falls to the
Interpretation level Very Strongly Agree. This shows that It is possible to
have loyal customers since this is a franchised business.
Overall, the weighted mean of Viability of Kiosk Franchising in terms
of product obtained the weighted mean of 3.64 which falls on the
Interpretation level Very Strongly Agree. This means that Product is one of
the key factors to sustain how viable the Kiosk Franchising.
Syed Zamberi Ahmad (2019) said that Al-Bastaki used novel coffee
goods and distribution strategies to compete in Dubai's oversaturated
coffee industry. Al-Bastaki set the first Café2Go apart by selling camel
items off of a moving van. It was the first mobile café in the UAE, and its
tagline was "wherever you are." He also talks about the difficulties the
project had in obtaining the required permits for the coffee truck and
marketing the unappealing, salty beverage camel milk.
39
2.2. pricing;
Table 2. Viability of Kiosk Franchising in terms of Pricing
Indicators Mean Interpretation Rank
*There is no hidden charge factor in 3.20 Strongly Agree 2
kiosk franchising among consumers
since price is fixed.
*Fair pricing among franchised 3.33 Very Strongly 3
businesses. Agree
*Kiosk franchising price is justified 3.67 Very Strongly 5
including all the cost. Agree
*Kiosk franchising competitive pricing 3.47 Very Strongly 4
strategy. Agree
*Flexible price depending on the 2.87 Strongly Agree 1
demand.
Composite Mean 3.31 Very Strongly
Agree
Table 2 presents the extent of Viability of Kiosk Franchising in terms
of pricing. It also contains 5 Indicators, weighted mean, ranking and the
Interpretation of its Indicators.
Indicator 1 obtained the weighted mean 3.20 which falls to the
Interpretation level Strongly Agree. This shows that There is no hidden
charges factor in kiosk franchising among consumers since price is fixed.
Indicator 2 obtained the weighted mean 3.33 which falls to the
Interpretation level Very Strongly Agree. This shows Fair pricing among
franchised businesses.
40
Indicator 3 obtained the weighted mean 3.67 which falls to the
Interpretation level Very Strongly Agree. This shows that Kiosk franchising
price is justified including all the cost.
Indicator 4 obtained the weighted mean 3.47 which falls to the
Interpretation level Very Strongly Agree. This shows Kiosk franchising
competitive pricing strategy.
Indicator 5 obtained the weighted mean 2.87 which falls to the
Interpretation level Strongly Agree. This shows a Flexible price depending
on the demand.
Overall, the weighted mean of Viability of Kiosk Franchising in terms
of pricing obtained the weighted mean of 3.31 which falls on the
Interpretation level Very Strongly Agree. This means that pricing is one of
the key factors to sustain how viable the Kiosk Franchising.
Fairbourne (2017)said that micro-franchising programs are typically
modular in that they consist of discrete, interconnected components that
can be added or subtracted to enhance or simplify functionality or
capabilities as the franchisees' businesses grow in order to achieve quality
and consistency with little involvement from the core organization.
Additionally, a microfranchise needs to be micro-scalable, or doable and
repeatable with incredibly few professional and financial resources.
41
2.3. promotion; and
Table 3. Viability of Kiosk Franchising in terms of Promotion
Indicators Mean Interpretation Rank
*Kiosk franchising marketing team can 3.53 Very Strongly 2.5
maintain brand consistency in Agree
communicating with the customers.
*The kiosk franchising business has its 3.73 Very Strongly 4
own set of brand guidelines like logo Agree
usage, type, color schema, brand
stories, attributes, and more. It helps
the economy to understand the brand
better.
*Kiosk franchising franchisees can 3.47 Very Strongly 1
customize their own marketing Agree
strategy.
*Kiosk franchising brand consistency 3.53 Very Strongly 2.5
is one of the factors that directly Agree
impact a franchise’s marketing efforts.
It also helps build recognition,
authority, and ultimately, sales.
*The kiosk franchising brand name 3.80 Very Strongly 5
Agree
itself can be used as promotion.
Composite Mean 3.61 Very Strongly
Agree
Table 3 presents the extent of Viability of Kiosk Franchising in terms
of promotion. It also contains 5 Indicators, weighted mean, ranking and the
Interpretation of its Indicators.
Indicator 1 obtained the weighted mean 3.53 which falls to the
Interpretation level Very Strongly Agree. This shows that the Kiosk
42
franchising marketing team can maintain brand consistency in
communicating with the customers.
Indicator 2 obtained the weighted mean 3.73 which falls to the
Interpretation level Very Strongly Agree. This shows that The kiosk
franchising business has its own set of brand guidelines like logo usage,
type, color schema, brand stories, attributes, and more. It helps the
economy to understand the brand better.
Indicator 3 obtained the weighted mean 3.47 which falls to the
Interpretation level Very Strongly Agree. This shows that Kiosk franchising
franchisees can customize their own marketing strategy.
Indicator 4 obtained the weighted mean 3.53 which falls to the
Interpretation level Very Strongly Agree. This shows that Kiosk franchising
brand consistency is one of the factors that directly impact a franchise’s
marketing efforts. It also helps build recognition, authority, and ultimately,
sales.
Indicator 5 obtained the weighted mean 3.80 which falls to the
Interpretation level Very Strongly Agree. This shows that The kiosk
franchising brand name itself can be used as promotion.
Overall, the weighted mean of Viability of Kiosk Franchising in terms
of promotion obtained the weighted mean of 3.61 which falls on the
43
Interpretation level Very Strongly Agree. This means that promotion is one
of the key factors to sustain how viable the Kiosk Franchising.
Alessandro (2018) points out that its market since starting as a
single little booth in San Bernardino by offering new goods and
technologies that altered how people eat. Perheravintolat Oy's current
condition is analyzed, and distinctions with its primary Finnish rivals are
outlined in an examination of those differences. The goal was to come up
with fresh concepts for a fictitious periodic marketing campaign and a
potential new product that may persuade more potential customers to eat
at McDonald's rather than a rival restaurant.
2.4 place;
Table 4. Viability of Kiosk Franchising in terms of Place
Table 4 below presents the extent of Viability of Kiosk Franchising
in terms of place. It also contains 5 Indicators, weighted mean, ranking and
the Interpretation of its Indicators.
Indicator 1 obtained the weighted mean 3.80 which falls to the
Interpretation level Very Strongly Agree. This shows that It is important to
place kiosk franchising in a crowded place to reach a wide range of
customers.
44
Indicators Mean Interpretation Rank
*It is important to place kiosk franchising in 3.80 Very Strongly 5
a crowded place to reach a wide range of Agree
customers.
*Awareness of the competitive 3.73 Very Strongly 3.5
environment and cultural trends to assess Agree
the business place in the market.
*It is important to place kiosk franchising in 3.67 Very Strongly 2
a place that has a delivery offer. Agree
*It is important for places with a lot of foot 3.73 Very Strongly 3.5
traffic to communicate with their clients Agree
more straightforwardly and casually.
*The kiosk franchising business can Very Strongly 1
determine the location first to understand 3.60 Agree
the local laws and standard business
practices of the area.
Composite Mean 3.71 Very Strongly
Agree
Indicator 2 obtained the weighted mean 3.73 which falls to the
Interpretation level Very Strongly Agree. This shows that Awareness of the
competitive environment and cultural trends to assess the business place
in the market.
Indicator 3 obtained the weighted mean 3.67 which falls to the
Interpretation level Very Strongly Agree. This shows that It is important to
place kiosk franchising in a place that has a delivery offer.
Indicator 4 obtained the weighted mean 3.73 which falls to the
Interpretation level Very Strongly Agree. This shows that It is important to
places with a lot of foot traffic use to communicate with their clients more
straightforwardly and casually
45
Indicator 5 obtained the weighted mean 3.60 which falls to the
Interpretation level Very Strongly Agree. This shows that The kiosk
franchising business can determine the location first to understand the local
laws and standard business practices of the area.
Overall, the weighted mean of Viability of Kiosk Franchising in terms
of product obtained the weighted mean of 3.71 which falls on the
Interpretation level Very Strongly Agree. This means that Place is one of
the key factors to sustain how viable the Kiosk Franchising.
Wilson (2021) said that Social sector franchising is developing as a
potential way of expanding the impacts of social entrepreneurs, while being
under-resourced and young. Commercial franchising has a track record of
accelerating business growth. Socially conscious entrepreneurs have
begun to turn to this strategy in the hopes of achieving similarly large-scale
growth and therefore exponentially increasing their social impact.
46
Table 5. Summary Table on the Viability of kiosk Franchising.
Variables Composite Mean Interpretation Rank
Product 3.64 Very Strongly 3
Agree
Pricing 3.31 Very Strongly 1
Agree
Promotion 3.61 Very Strongly 2
Agree
place 3.71 Very Strongly 4
Agree
Overall Mean
Table 5 presents the summary of Viability of Kiosk Franchising. It
also contains 4 variables, composite mean, ranking and the Interpretation
of its variables.
The product's composite mean was 3.64, and its rank 3 corresponds
to an interpretation level of Very Strongly Agree. Pricing received a
composite mean of 3.31 and ranked 1, falling under the interpretation
category of "Very Strongly Agree." Promotion received a composite mean
of 3.61 and ranked 2, again falling under the category of "Very Strongly
Agree." Place received a composite mean of 3.71 and a rating of 4, which
is Very Strongly Agree in terms of interpretation.
Bovee and Thill (2008) titled “The Impact of Indomaret Operated on
Traditional Small Kiosk Sales in Manado City” explains that a franchise is
a type of commercial relationship in which one business has the right to
resell the goods or services of the provider (franchisor). Franchises are
47
agreements that allow the creator of a business product or operating
system to delegate the sale of the goods and/or the usage of the business
operating system to another business owner. A franchise is a company or
individual that has been given legal license to operate a business franchise
system or sell a product by the original owner of a system or product. The
process of planning and carrying out the conception, pricing, promotion,
and distribution of concepts, products, and services in order to establish
and maintain relationships is known as marketing.
2.3 Possible Problems Encountered in Adopted Kiosk
franchising.
Table 6. Possible Problems Encountered of Adopting Kiosk
franchising
Table 1 below shows the respondents possible problems may be
encountered of adopted kiosk franchising. High operating cost compared
to traditional business model since there is a fixed amount that you need
to pay to have the business got 7 or (12%) as the 1st rank, There are rules
and regulations need to follow got 10 or (19%) as the 2nd rank, Possible
brand dilution since this is a kiosk franchising there is a high possibility that
you will have a lot of competitors has 11 or (20%) as the 3rd rank, Less
control over the business. You are not allowed to make changes without
consulting the franchisor which has 12 or (22%) as the 4th rank, Not as
48
much decision-making power since everything in a kiosk franchising is
planned. Even though it is your business you still need to consult the
franchisor for possible changes as 14 or (26%) as the 5th rank.
Problems Encountered f % Rank
*There are rules and regulations that need to be 10 19 2
followed.
*Possible brand dilution since this is a kiosk 11 20 3
franchising there is a high possibility that you will
have a lot of competitors.
*High operating cost compared to traditional 7 12 1
business models since there is a fixed amount
that you need to pay to have the business.
*Less control over the business. You are not 12 22 4
allowed to make changes without consulting the
franchisor.
*Not as much decision-making power since 14 26 5
everything in a kiosk franchising is planned. Even
though it is your business you still need to consult
the franchisor for possible changes.
*Multiple Responses
Praetorius (2021), the four key contributions to the knowledge of the
scaling up process. First, we show that whether social enterprises prioritize
easing internal restrictions or those imposed by customers influences
entrepreneurial changes. Second, we show how dynamic constraint
prioritizing affects how businesses mobilize resources and apply operating
procedures from inception to market establishment. Third, we show how
enterprises can have a 'deep' impact by extending the number and variety
of their activities, or a 'wide' impact by expanding their membership base
49
and/or geographic region by adopting resource mobilization strategies and
operating routines. Finally, our findings reveal that companies build
alternative sequences of moral, regulatory, and cognitive elements of
institutional legitimacy when they prioritize internal or consumer
constraints.
4. Proposed Improvements to the Kiosk Franchising Business Model
This is what the researchers proposed the improvements of kiosk
franchising business model:
1. Choosing a franchise location for ideal success.
2. Building a strong franchise brand
3. Advertising strategy that reproduce with the main brand & local
audience in different location
4. Providing a delivery offer to the nearby customer
5. Online platform that consumers can purchase goods or services
through the franchisee’s physical store.
6. Ensure customer satisfaction that gives an unbeatable competitive
advantage.
50
Chapter 4
DISCUSSIONS
The purpose of this chapter is to summarize the findings that
emerged from the study; what the study suggested, revealed or indicated.
This usually refers to the totality of outcomes, rather than the conclusions
or recommendations drawn from them.
Summary of Findings
From the foregoing analysis and interpretation made, the following
findings drawn presented:
1. Kiosk Franchising operated.
1.1 Planning. The franchisor will grant the franchisee permission to
manufacture and sell products bearing the franchisor's
trademarks. The franchisor manufactures the product and sells
it to the franchisees. The franchisees sell the products to
customers using the franchisor's trademark.
1.2 Process. The franchisor is responsible for selecting or
approving the franchised unit's location, constructing a building
on the site, and setting up. Stocking the building and eventually
opening the franchised unit. Provide a reasonable timeline until
the building is ready for occupancy. The franchisee has paid an
initial fee and made commitments to purchase equipment or hire
51
workers. Be informed of when the franchised unit will be ready
to operate so that commitments can be met on time.
1.3 Service. The franchisor has an interest in making sure that the
franchisee meets a minimum level of finished product quality.
The franchisor creates a specific service that the franchisee
must provide to his customers in accordance with the terms of
the franchise agreement.
2. The Viability of kiosk franchising as a business model.
1.4 Product. The assessment to product drawn by respondents on
Kiosk franchise already tried and tested product is Very strongly
agree (3.87), It is an advantage to own popular or widely known
kiosk franchising product in the market is Very strongly agree
(3.67), and lastly the possible to have loyal customers since this
is a franchised business is Very strongly agree (3.60)
1.5 Pricing. The assessment of product drawn by respondents on
Kiosk franchising price is justified including all the cost is very
strongly agreed (3.67), Kiosk franchising competitive pricing
strategy is very strongly agreed (3.47), Fair pricing among
franchised businesses is very strongly agreed (3.33).
1.6 Promotion. The assessment of products drawn by respondents
on The kiosk franchising brand name itself can be used as
promotion is very strongly agreed (3.80), The kiosk franchising
52
business has its own set of brand guidelines like logo usage,
type, color schema, brand stories, attributes, and more. It helps
the economy to understand the brand better and is very strongly
agreed (3.73), Kiosk franchising marketing team can maintain
brand consistency in communicating with the customers and
Kiosk franchising brand consistency is one of the factors that
directly impact a franchise’s marketing efforts. It also helps build
recognition, authority, and ultimately, sales is very strongly
agree (3.53)
1.7 Place. The assessment to product drawn by respondents on It
is important to place kiosk franchising in a crowded place to
reach a wide range of customers is very strongly agree (3.80),
Awareness of the competitive environment and cultural trends
to assess the business place in the market and It is important to
places with a lot of foot traffic use to communicate with their
clients more straightforwardly and casually is very strongly
agree (3.73)
3. Possible Problem may be encountered to adopt kiosk franchising.
Indicates that 14 or 90% respondents agree that not as much decision-
making power since everything in a kiosk franchising is planned. Even
though it is your business you still need to consult the franchisor for
53
possible changes. Likewise, 12 or 75% respondents answered Less control
over the business. You are not allowed to make changes without consulting
the franchisor, and lastly 11 or 73% respondents chose Possible brand
dilution since this is a kiosk franchising there is a high possibility that you
will have a lot of competitors.
4. Proposed Improvements to the Kiosk Franchising Business Model
Indicates Choosing a franchise location for ideal success, Building a strong
franchise brand, Advertising strategy that reproduce with the main brand &
local audience in different location, Providing a delivery offer to the nearby
customer, Online platform that consumers can purchase goods or services
through the franchisee’s physical store, Ensure the customer satisfaction
that gives an unbeatable competitive advantage.
Conclusions
This study tested the viability of kiosk franchising of Siomai King in
Quezon City. At the end of the this study we therefore conclude that:
1. The kiosk franchising will become successful when Planning,
Process and Service is well established and constructed properly.
2. Product, Pricing, Promotion and Place are the key factors that can
trigger the success of the kiosk franchising if these variables are
implemented accordingly.
54
3. Since the outcome of our survey is already a given situation, we
conclude that regardless of this being on top of the list, kiosk
franchising is still viable and franchisees still consider this as a good
business model.
4. The proposed improvements to the kiosk franchising business
model such as Choosing a franchise location for ideal success,
Building a strong franchise brand, Advertising strategy that
reproduce with the main brand & local audience in different location,
Providing a delivery offer to the nearby customer, Online platform
that consumers can purchase goods or services through the
franchisee’s physical store, Ensure the customer satisfaction that
gives an unbeatable competitive advantage.
Recommendations
After all the analyses on this study about the success of kiosk
franchising we recommend the following:
1. Continued operation on kiosk franchising to sustain the viability of
Siomai king franchise as a business model.
2. Proper business placement is very important. It must be accessible
to the market to reach a wide range of consumers.
3. Creating a decent amount of promotion is enough especially if the
product is already well known.
55
4. Stable pricing should be established to avoid confusion among other
kiosk franchised businesses.
5. Uniqueness of the product is an important factor especially now that
there is a lot of competition in the market.
6. The researchers recommend this study to all aspiring franchisees,
because this is focused on testing the viability of kiosk franchising
when placed in the market. All factors have been stated and tested.
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57
Appendix A
Letter Permit to Conduct the Study
58
Appendix B
Instrument
59
60
61
62
Appendix C
Documentation
1. Pilot Testing
Pilot testing at Siomai House, SM North Quezon City
2. Actual Survey
63
November 02, 2022, the day we conducted our survey questionnaire
at Siomai King around Quezon City.
3. Physical Store of Siomai King
This is one of the sample of Siomai King product
64
4. Computation Result
65
66
Appendix D
Certificate of Originality
67
Appendix E
CERTIFICATE OF ENGLISH EDITING
This is to certify that the Undergraduate Thesis entitled VIABILITY OF
KIOSK FRANCHISING AS A BUSINESS MODEL OF SIOMAI KING IN
QUEZON CITY
Submitted by its authors
MARY ANGEL D. CLOSA
MARLYN JOY OCHAVEZ
APOL PILAN
MARK JOSEPH A. TOLENTINO
has been edited for language, grammar, punctuation, spelling, and
overall style. Neither the research contents nor the author’s ideas were
altered during the editing process.
JENNYLENE A. ABALOS, SMRIEdr.
Editor
Date: November 22, 2022
68
Appendix F
CERTIFICATE OF STATISTICIAN
This is to certify that the Undergraduate Thesis entitled VIABILITY OF
KIOSK FRANCHISING AS A BUSINESS MODEL OF SIOMAI KING IN
QUEZON CITY
Submitted by its authors
MARY ANGEL D. CLOSA
MARLYN JOY OCHAVEZ
APOL PILAN
MARK JOSEPH A. TOLENTINO
has been computed and checked for the proper statistical tools
used, tabulation, presentation, analysis, and interpretation of data.
JEREMIAH P. PALMIANO, MBA
Statistician
Date: November 22, 2022
69
Appendix G
Grammarian Curriculum Vitae
70
71
72
Appendix H
Statisticians Curriculum Vitae
73
74
75
76
Appendix I
Research Adviser Curriculum Vitae
77
78
79
80
Appendix J
Researchers Curriculum Vitae
81
82
83