Franchise - Case Study
FRANCHISE Case Study 1: Intro to Business
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FRANCHISE Case Study Questions:
1) Discuss the benefits and drawbacks of opening a franchise. (6 marks)
The benefits of opening a franchise is that the franchisor would provide support, assistance and training; they would have a recognized name and products and; opening the franchise would be a reduced risk to the franchisee.
The drawbacks of opening a franchise is that there would be restrictions on operations as the franchisee would have to follow the franchisor’s rules and regulations; must pay franchise fees and the percentage of sales to the franchisor and; there would be a loss of management control, prices, wages or even innovation. 2) Evaluate the benefits and drawbacks of running this franchise with a partner rather than doing it on your own. (6 marks)
The benefits/advantages of running this franchise with a partner would be; It would be fairly easy to start the partnership with an agreement between two people; It would be easier to raise more capital than a sole proprietorship; We would have greater skills and expertise with two of us as partners and; flexibility to support and help each other.
The drawbacks/disadvantages of running this franchise with a partner would be; there could be conflicts or disagreements with a partner; we would be sharing the profits and; there could be difficulty in leaving or ending the partnership.
3) List 6 key characteristics that you and your partner will have to display in order to be successful in this entrepreneur endeavor. (3 marks)
The key characteristics that my partner and I would have to display to be successful in our entrepreneur endeavor would be, to be: Ambitious, committed, self-confident, energetic, passionate, creative, passionate, determined and risk takers.
4) List 6 stakeholders and discuss how they are impacted by your business. (6 marks)
1.
2.
3.
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FRANCHISE Case Study Questions:
1) Discuss the benefits and drawbacks of opening a franchise. (6 marks)
The benefits of opening a franchise is that the franchisor would provide support, assistance and training; they would have a recognized name and products and; opening the franchise would be a reduced risk to the franchisee.
The drawbacks of opening a franchise is that there would be restrictions on operations as the franchisee would have to follow the franchisor’s rules and regulations; must pay franchise fees and the percentage of sales to the franchisor and; there would be a loss of management control, prices, wages or even innovation. 2) Evaluate the benefits and drawbacks of running this franchise with a partner rather than doing it on your own. (6 marks)
The benefits/advantages of running this franchise with a partner would be; It would be fairly easy to start the partnership with an agreement between two people; It would be easier to raise more capital than a sole proprietorship; We would have greater skills and expertise with two of us as partners and; flexibility to support and help each other.
The drawbacks/disadvantages of running this franchise with a partner would be; there could be conflicts or disagreements with a partner; we would be sharing the profits and; there could be difficulty in leaving or ending the partnership.
3) List 6 key characteristics that you and your partner will have to display in order to be successful in this entrepreneur endeavor. (3 marks)
The key characteristics that my partner and I would have to display to be successful in our entrepreneur endeavor would be, to be: Ambitious, committed, self-confident, energetic, passionate, creative, passionate, determined and risk takers.
4) List 6 stakeholders and discuss how they are impacted by your business. (6 marks)
1.
2.
3.