The Chocolate Bar has grown into an international business, thanks to founder Alison Nelson's deal with Dubai entrepreneur Mary Ghorbial. Nelson chose licensing instead of franchising because she had to adapt The Chocolate Bar's products and presentation to accommodate local needs and customs- changes not allowed under franchising. "It's not a franchise. It's the same brand, but with local touches," she explains.
Advised by Ghorbial, Nelson says she "got rid of things that were too American," including peanut butter ingredients, and added new flavors to suit local tastes. She also added fancy chandeliers and other opulent touches to the café's design. Even with these changes, chocolate remains the star of the menu-a treat in any language.
1. If you were working on a business plan for The Chocolate Bar in the United States, what potential risks would you mention? How would you suggest that the company deal with these risks?
2. Would you recommend that Alison Nelson franchise The Chocolate Bar within the United States? Explain your answer.