Assignement 1: Short Paper (Two-page paper answering the following questions (APA style):
If you were to start a franchise company, who would you ask to serve on your corporate board? The key to a successful board is to include people who think differently than you do, and who bring some additional expertise to the table. For this assignment, assume you are the founder/CEO of a new franchise company. Describe the type of business you will franchise (i.e., fast food restaurant, printing company, coaching business, etc.). Then develop a list of people (specific names are optional) and the expertise they will bring to the board. The emphasis in this assignment is on the expertise. What expertise will you need to advise you and help you build a successful franchise business?
Assignement 2: Discussion
Why would a business owner want to franchise his/her business? Is it worth the work involved? Explain your answer. (Also, make a comment on each example I have provided too)
Example 1
In researching different benefits to franchising your company I found a website that defines 10 very clear and apparent reasons why Franchising may be a good choice. Some of these include: Franchising is the most successful way to grow a business and release much of the capital costs and liability of expansion onto the franchisee. Franchise Fees and Royalties are charged and paid to the company for each franchisee. This gives the additional capital needs over to the franchisee in setting up the store/business/etc like lease and personnel (payroll taxes). The franchisor has no direct liability for the franchisee actions, although the franchisor is very much affected by reputation and public view due to the wrong doing of franchisees. Franchising allows for quick market penetration and when there is a loss of a store the loss is less significant with franchisees then owning the store outright.
Considering the change in liability in expansion I do think it is worth the work to franchise my own business. It allows for quick expansion much more successfully then trying to own every location outright.
https://www.frandocs.com/10-reasons-to-franchise.htm
Example 2
A business owner would want to franchise its business for a few reasons. Franchising offers a lower cost alternative to growing a company as it provides the benefit of increased revenue with minimal overhead required. The company does not need to open up a new location for every area they feel that the company would succeed in. By franchising they are able to create that growth without the capital investment. For the most part franchising is worth the work involved as long as the company selects the right locations and franchisees. Without the location or the right person the franchise could do more harm than good to the overall image and reputation of the company.
Example 3
There are numerous reasons for a business owner to franchise their business. For myself being a business owner I would want to franchise my business to expand. Expanding a business can be beneficial through franchising. I think it would be easier to expand and become well know through franchising. Franchising allows for expanding for the business owner without having to use their own capital. It also allows for the business owner to receive profit from the franchise and other rewards through the franchise agreement. I think the task of franchising is an arduous task. I also believe that at the end of the hard work the benefits are well worth the temporary inconvenience