Explore BrainMass
Share

Franchisee Pros and Cons

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Would you help me to answer the following questions?

1. Being a franchiser seems to be a mechanism for growth, but what are the growth prospects for entrepreneurs who are franchisees?

2. Discuss whether or not the entrepreneur is limited in his or her ability to pursue all the different types of growth strategies.

3. Is being a franchisee simply substituting one type of employment for another type of employment?

4. How can a franchisee grow his or her business?

5. What are the legal or concerns related to being a franchisee?

© BrainMass Inc. brainmass.com October 17, 2018, 1:47 am ad1c9bdddf
https://brainmass.com/business/entrepreneurial-issues/franchisee-pros-cons-352180

Solution Preview

1. Being a franchiser seems to be a mechanism for growth, but what are the growth prospects for entrepreneurs who are franchisees?

The entrepreneur needs to do his or homework, as some franchises are more lucrative than others. (http://www.globalbx.com/f1_prosandconsoffranchises.asp). Tough economic times means that finding the right franchises for a business that has good growth potential, like Tim Horton's, is essential to success and growth. However, in terms of goods and prices, they are most often fixed by the franchise. (www.allbusiness.com/company-activities-management/financial-performance/11793689-1.html) However, there are some growth strategies such as building a loyal customer base of repeat customers by being friendly and an effective communicator, hiring employees that are efficient and friendly and customer focused, creating a customer-focused culture for the organization, clean walks and parking area, etc.

2. Discuss whether or not the entrepreneur is limited in his or her ability to pursue all the different types of growth strategies.

Entrepreneurs are somewhat limited to pursue different growth strategies in most franchises, even the most hands-off franchise (and even these rarities) may limit the control the franchisee has to pursue growth strategies. Typically, she or he will have no control over the goods they use and the cost of these goods or the suppliers. If the franchisee is involved in a trade/craft-oriented franchise, such as plumbing or painting, she or he may have little say over the jobs you can take or turn down. Bad press created by another franchisee can ...

Solution Summary

The solution discusses franchisee pros and cons.

$2.19
Similar Posting

Types of Business (Used Car Dealership Case Study)

Duke has been a successful used-car dealer for 25 years in the same location, operating as a proprietorship. In those 25 years, he has expanded his operation and become the largest independent car dealer in a city of 85,000 people. The few people in town can boast of a business reputation better than Duke's. As he says "I've always done business in a fair and honest fashion, and I've always tried to give my customers an honest deal. The public has responded well and last year the business revenue increased to an all-time high of $830,000."

As the business has grown, so have Dukes liabilities. On a given day, Duke will have cars worth from $350,000-$450,000 as inventory on the lot. "Twenty years ago, if I asked the bank for a line of credit of $200,000, they have tossed me out the front door. There is no question today's business is different."

Dukeâ??s only daughter recently married a garage mechanic who has worked in the area for the past three years. Though Duke thinks the boy is certainly nice enough, he does not believe he is very smart. "The kid sure knows how to fix a car, but that's as far as it goes," says Duke. "My last visit to the accountant, he suggested I consider incorporating. I guess he knows what he's talking about. That's all you hear today -- be a corporation. I guess he's right. But, to tell you the truth, I don't know."

Please post your references.

1.Should Duke incorporate or should he remain a proprietorship? Explain your answer.
2.Discuss five of the essential components of a business plan.
3.Explain the differences between an S. Corporation and a limited liability corporation.
4.Discuss the positive and negative aspects of purchasing a franchise.
5.Discuss the pros and cons of buying an existing business.
6.Would you recommend an S. Corporation or limited liability corporation for Duke? Explain your answer.
7.Define and discuss four of the eight archetypes for new business ventures.

View Full Posting Details