Entrepreneurial Case Study
ORGANIZATIONAL MANAGEMENT
Entrepreneurial Case Study
Question 1: You are interested in being your own boss and have the chance to buy a franchise office-supply store that is for sale in your city. You will need outside investors to help pay the franchise fees and other start-up costs. How will you determine if this is a good entrepreneurial opportunity and make your decision about buying the store?
Before making any decisions, we will have to evaluate all the parameters of the franchisor`s Uniform Franchise Offering Circular (UFOC) and of the franchise agreement. Every requirement, every cost and all resources engaged must be meticulously screened in order to establish a risk to reward ratio. In addition, since we are soliciting the help of outside investors in the realization of this project, we want to insure their return on investment will at least cover their initial deposit. Last but not least, we want to ensure that the enterprise we are embarking on matches our business plan: is this location ideal; is there a market for office supplies in that area?
After we have expressed the desire to evaluate a franchise opportunity; the franchisor, by law has to provide us with the UFOC and franchise agreement at least 10 days before receiving our deposit as specified by the Law. (Entrepreneur Media, Inc.) The first step after receiving these documents is to review them for legal purposes. We will need to ensure that these documents comply with FTC regulations. In this process, we might consult a lawyer to ensure the validity of all documents.
The UFCO contains 23 items of information about the franchise. (Entrepreneur Media, Inc.) Among those items are sections on the history of the franchise (its founders, the number of years it has been in business…), sections on the financial terms (approximation of initial costs, major criminal or bankruptcy actions...) and many more. Two sections are crucial for us in our analysis of the UFCO: the section on
Entrepreneurial Case Study
Question 1: You are interested in being your own boss and have the chance to buy a franchise office-supply store that is for sale in your city. You will need outside investors to help pay the franchise fees and other start-up costs. How will you determine if this is a good entrepreneurial opportunity and make your decision about buying the store?
Before making any decisions, we will have to evaluate all the parameters of the franchisor`s Uniform Franchise Offering Circular (UFOC) and of the franchise agreement. Every requirement, every cost and all resources engaged must be meticulously screened in order to establish a risk to reward ratio. In addition, since we are soliciting the help of outside investors in the realization of this project, we want to insure their return on investment will at least cover their initial deposit. Last but not least, we want to ensure that the enterprise we are embarking on matches our business plan: is this location ideal; is there a market for office supplies in that area?
After we have expressed the desire to evaluate a franchise opportunity; the franchisor, by law has to provide us with the UFOC and franchise agreement at least 10 days before receiving our deposit as specified by the Law. (Entrepreneur Media, Inc.) The first step after receiving these documents is to review them for legal purposes. We will need to ensure that these documents comply with FTC regulations. In this process, we might consult a lawyer to ensure the validity of all documents.
The UFCO contains 23 items of information about the franchise. (Entrepreneur Media, Inc.) Among those items are sections on the history of the franchise (its founders, the number of years it has been in business…), sections on the financial terms (approximation of initial costs, major criminal or bankruptcy actions...) and many more. Two sections are crucial for us in our analysis of the UFCO: the section on
Cited: Daft, R., & Marcic, D. (2011). Understanding Management. Mason, OH: South-Western Cengagr Learning. Davison, Ellis. (2014, Feb. 17). The Houston Chronicle. Retrieved Mar. 16, 2014, from Chron.com: http://smallbusiness.chron.com/average-time-reach-profitability-start-up-company-2318.html Engle, P. (2013, Jun. 5). Business Insider. Retrieved Mar. 17, 2014, from Business Insider: http://www.businessinsider.com/small-business-owners-are-optimistic-2013-6 Entrepreneur Media, Inc. (n.d.). Uniform Franchise Offering Circular (UFOC). Retrieved Mar. 18, 2014, from Entrepreneur: http://www.entrepreneur.com/encyclopedia/uniform-franchise-offering-circular-ufoc Gappa, B. (n.d.). What is Franchising. Retrieved Mar. 18, 2014, from franchise Update Media Group: http://www.franchising.com/articles/what_is_franchising.html Joel, M. (2011, Feb. 11). Six Pixels of Sepreation. Retrieved Mar. 17, 2014, from Twist Image: http://www.twistimage.com/blog/archives/are-you-an-entrepreneur-or-a-business-owner/ Sturges, J. (1999). What it Means to Succeed: Personal Conceptions of Career Success Held by Male and Female Managers at Different Ages. London: British Journal of Management.