Franchise Business Ownership Essay Example

Franchise Business Ownership Essay Example Franchise Business Ownership Essay Franchise Business Ownership Essay Franchise Business Ownership Name: Course: Institution: : Instructor: Date: Executive Summary Franchise is a business method that incorporates marketing strategies for the sake of rapid expansion of various business ventures. Business franchisors are independent entities in the market that develop outlets, or franchisees and offer to brand them with their id entity and give them a trademark logo. In return, the franchisees are supposed to sign the franchise agreement that stipulates the way they will run their businesses, and this should be done in the presence of the lawyer of the franchisee. Therefore, they must adhere to the business practices of the franchisors to sustain their legal relationship. In most cases, the business practices are accordant to the success of the business. The franchisors also give the outlet businesses the right to sell their goods or services. They are well organized, and they monitor the sales of the goods or service to realize the weaknesses and improve on them. The franchisees enjoy the profits of the businesses if they follow the rules as st ipulated in the franchise contract. However, upon breach of contract, there is a threat of franchise termination where the two franchise parties cease to be partners. Although it is usually advisable for established businesses to get into a franchise contract rather than small and new ones, new business are also at a great advantage to become franchisees. However, they must make a good choice. If the franchisor has assessed the business venture and has seen potential growth, it will offer a franchise deal to the business. In addition, franchisors often have training opportunities for the owners of the new businesses that give them comprehensive insight on management and operation strategies. They also provide them with manuals that will act as references in the future. This puts the potential entrepreneurs at an advantage of knowing their competitors and assessing the risks to avoid or mitigate them in the future. In as much as franchising is feasible, there are still other alternat ives that businesses can choose for their establishment and operations, though the pros of franchising are weighty as compared to the rest. Background The Hatches Coffee Shop is a small business, which two couples, Ken and Mary Hatch want to start up and establish. Both have previously served as employees with Ken having been a caretaker for a local school in Markham for 20 years and Mary, a coffee shop attendant for 8 years. However, they do not have tangible experience in the field of management of restaurants. Ken has vague management skills on supervision considering his promotion to supervisor in the local school, in Markham, while Mary has been an employee in a coffee shop for as long as 8 years. They are very optimistic about the business venture because they need emancipation from the bondage of obtaining orders from the bosses having been employed for such a long time. The Hatches need to commence the coffee shop with minimal risks hoping to reap better benefits. They are pondering on sealing a contract with a successful Canadian Franchise nationally known as Second Cup, which was formed in 1975, Toronto. The Canadian Fra nchise has shown remarkable development with its extension of 400 outlets countrywide. It operates on a franchise fee of $ 20,000 and a promotional fee of 9% of gross sales. It is based on additional cost of $ 200,000 for equipment and other start-up costs as the total investment for an outlet in Markham. Second Cup also takes the responsibility of constructing the business building of the franchisers and rents it to them. The company offers an extensional service to the franchiser with the help of their bank if the franchiser is unable to begin with $200,000 but is dedicated to seal the deal. Here, the bank finances the remainder of what the franchiser can offer at a levied 5% upon the signing of the contract. Second Cup has a Coffee College at which it offers a three-week comprehensive course pertaining to the training of franchisers on the fundamentals of the coffee and retail business. Presently, Second Cup thrives with five Markham outlets. Problem Statement The Hatches want to be self-employed by establishing their own coffee shop with minimal risks through a franchise contract with Second Cup. They have a vague idea of management, though not substantial enough to confidently manage the coffee shop since have limited ideas in managing a restaurant. The well organized operating and monitoring system, growing coffee sales and parent company, offer opportunities for success although the Hatches are faced with many experienced future competitors in contract with Second Cup. Analysis of Firm and Industry Market Structure There are competitive coffee houses and shops and fast foods outlets that sell coffee in Markham. The form is perfect competition since there are many shops, outlets and coffee houses selling the same product. This type of form has no barriers to entry of another business involved with selling or serving coffee and it consists of many sellers and buyers while coffee remains the undifferentiated commodity. There are three Starbuck coffee houses in the region, many other independent coffee shops and other fast-food outlets selling coffee. This market form allows the Hatches to venture into the industry smoothly and share the same market as the rest. They have a stiff competitor, Starbucks, who have three coffee houses and are already franchisers with Second Cup. Key participants The key participants in the establishment of the small business are the Hatches and the Second Cup, a Canadian franchise. The Hatches are ordinary employees who are in dire need of being their own bosses by starting up the coffee shop. Despite their lack of proficiency in restaurant management, they have expressed their enthusiasm by conducting a survey on the Canadian Franchise to enable to reach a decision. The decision is based on whether to sign the franchise contract or not. Mary Hatch went a notch higher by gathering information on the Franchise Company and its need of franchisees from her boss in the coffee shop where she has been working. Second Cup has an attractive offer to his clients since it deals with promotion for the product of the small business and it takes charge of the premise of the business by building it and renting it back to the business owners. This pushes the business plan of the Hatches forward and gives them a chance to maximize all the opportunities in the area. As a franchisee, it will work to ensure that the Hatches get all the business information they need. Since Second Cup has partnerships with other coffee houses as well, it is better placed to advise the Hatches on the type of promotion strategies to apply to have a competitive advantage. The Hatches will be able to jumpstart their business growth. However, there is still a probability that Second Cup can be bought off by the Starbucks coffee houses to bend its favor towards them and, therefore, conceal necessary information from the Hatches. If the Hatches do not make the right choice concerning the contract, they will be faced with myriads of challenges that will see to it that their small business crumbles and their capital will go down the drain. Nevertheless, second cup have proven to be more promising by providing them with a financial statement sample that would give the couple a framework for a business plan. Important Trends There are important trends that the Hatches should consider before getting into the franchise agreement with Second Cup. The franchise agreement will be a bond between the Hatches and Second Cup for a successful future. It will determine the direction of the coffee shop as a small business and its beneficial outcomes. The three-week course Second Cup is offering the Hatches will enable them to go through the training process, to get insight on major business operations. There are legal implications in case of breach of contract. S.W.O.T Strength The strength of the Hatches coffee shop becoming a franchisee is the fact that they already have a clear starting point. Second Cup will ensure that they have sufficient business training and will organize a premise for them. Upon that, the Hatches Coffee Shop will run on the grounds of the franchise policies, which work to make the small business successful. Second Cup will also ensure that the hatches stick to what is best for their coffee shop when they finally start it. Therefore, the Hatches coffee shop will be treading on the right path. In addition, as a franchisee of Second Cup, the Hatches will have a business privilege of legitimately having a trademarked logo and name for the coffee shop as part of their business plan and marketing expertise. Second Cup has already considered promotion campaigns for the Hatches coffee shop. Another advantage of a franchise agreement is that the franchise company has already established the same contract with other related business like Se cond Up has with Starbucks. In case of a breach of contract, in the future the Hatches coffee shop together with Starbucks can launch complaints until there are rectifications. Weakness The weakness of this franchise contract would be unexpected investments incurred on Hatches coffee shop. In the event that Second Cup adjusts the conditions of the franchise agreement, for instance the coffee shop’s outlook and withdraws its financial assistance, the Hatches will have to meet up with the costs. This might derail their business strategies making them have a financial hiccup for utilizing a lot of money. In addition, in case of a hike in price of coffee in the future by the supplier recommended by Second Cup as per the contract, the Hatches will not be able to find a new supplier because the contract has no opening for that freedom. Hence, they will not enjoy the profits. Opportunities The franchise contract will give the Hatches an opportunity to equip themselves with business knowledge especially since they do not have adequate background on management. They will have an opportunity to assess some of the risks related to their business and conclude on how to mitigate such risks. Second Cup is offering the Hatches a three-week course at their coffee college to enlighten the couple on the fundamentals of coffee and retail business. This will keep the couple on toes concerning the competitive business environment. Threats The threat the Hatches have upon signing the franchise contract with Second Cup is franchise termination, which would happen if the Hatches do not pay royalties such as the promotion royalties as stipulated in the contract and other unpaid fees. This can be through frivolous litigation or legal release. Alternatives There are three alternatives to franchising the coffee shop. Licensing This is a situation where an entity will allow the Hatches to start up a version of its coffee shop under the Hatches name. The first advantage of this method is that the sales process and legal documentation are simple as compared to a franchise agreement. The second advantage is that in licensing, the Hatches will be able to act as an autonomous company making changes and decisions for themselves. Every operation will in line their interest, as opposed to the inflexibility that is in a franchise agreement. The other advantage is that the cost will not be as hefty as in franchising. One disadvantage is that the couple will not have the opportunity to build a brand name and establish themselves in the market through adequate advertisement as franchisees would. This will be detrimental to them because it will be their first ownership venture with inadequate experience. The second disadvantage is that with such limited experience, licensing does not give them the opportunity to go thr ough training as Second Cup does. Hence, the couple will be operating blindly without enlightenment. For lack of knowledge and direction, the coffee shop might crumble. Thirdly, the new business might develop impractical business practices. No â€Å"Fee† Route The Hatches in this case will have to look for an entity that offers no fee. The entity does not compromise profits fully but develops a transaction structure that does not resemble a franchise agreement. Therefore, the Hatches will choose either to share ownership of the coffee shop with the entity or start a dealership where the entity supplies coffee to the shop as a wholesale while the Hatches become the retailers. The advantage here is that the Hatches will be free from hefty investments like the advertising fees, royalties, training, and initial or equipment fee. The second advantage is that the Hatches will also be in a position to make business decisions autonomously. However, it also has three advantages. The first one is that the entity is not accountable for any training leaving the Hatches on the losing side because of lack of adequate skills. The second advantage is that the hatches will not have a trademarked logo and thirdly the Hatches will not have a good idea of be tter suppliers in the market. In case they do, they will have already killed their profits. Trademark License This method is almost like franchise since the entity also licenses its trademark. However, the trademark licensor does not undertake operational support or control. The advantage is that the Hatches can get the trademark and still operate autonomously. This would earn them publicity and their market would increase. Another advantage is that they will also have a relief on the cost since it does not incur royalties or training costs. Consequently, the Hatches will not be tied to only one supplier of coffee in case of rise in price by their supplier. The disadvantage of this alternative is that the Hatches will not undergo a training program, limiting their capacity to run the business. In addition, since they are incapable of making a good start, they might spoil the brand of the trademark licensor. They might not be able to control how they use the brand name. The third disadvantage is that due to lack of training, the hatches will not assess the risks in the industry and therefore lack competit5ive advantage. Recommendation For Ken and Mary Hatch, the best means to use to start up their coffee shop is to accept the franchise contract that Second Cup offers. They are in dire need of becoming entrepreneurs and on that note, franchising will be best because it offers business training, promotion through a trademark logo and premise building. They should sign the contract in the presence of a lawyer to vet the jurisdiction and confirm that the conditions are feasible. Implementation Long-term After making a choice of being a franchisee, the first step will be to sign the franchise contract in the presence of a lawyer. The franchise contract courtesy of Second Cup contains rules and regulations that will govern the partnership. It will clearly define the requirement of the coffee shop as a franchisee and the code of conduct to be adopted by the coffee shop. This will be a binding agreement between the Hatches and Second Cup that will serve as a long-term reminder for the business relationship. Since the Hatches are unable to raise the total investment cost, which is $200,000, Second Cup through its bank will accept their savings of $ 20,000 and finance the remainder at 5%. The building of the coffee shop premise by Second Cup will be another long-term venture because it will establish the location and the market. Once the building is done and the outlook is complete, the Hatches will then venture into the business. Second Cup will in turn rent the building to the Hatches The training will be vital and it is a long-term investment because the Hatches will undertake a three-week course on the fundamentals of coffee and this will give them insight. They will also develop expertise in the field of management to assess business risks and they will be positioned on the same radar as the other competitors. The training will involve business plan manuals that will give them better ideas on entrepreneurship. These ideas will be used for a long-term in the business enabling it to grow. Another long-term implementation plan will be the franchisor’s responsibility to give the coffee shop a brand or a trademark logo that will establish it among other franchisees in the same field. This will give the coffee shop permanent recognition in the market because the clients will associate it with the big brand. It might even result to a bigger business in the future. Since clients have already familiarized with the franchisor in the wide market, the Hatches will attain a reputable personality. Second Cup will also need to establish a relationship between the supplier and the Hatches. They will have to comply with the supplier chosen since Second Cup is in charge and makes the ultimate decision. Since the coffee sales are growing, the Hatches will be sure to have a successful business. They will have good savings by purchasing supplies from Second Cup. Short-term Second Cup will produce marketing expertise who will market the coffee shop in Markham. The expertise will derive unique ways of promoting the business so that the clients are aware of it as a new outlet of Second Cup. This will involve promotional campaigns and advertisements, which the Hatches will have to pay royalties according to the franchise agreement. This will be short-term since it will serve to entice the interest of the consumer and after achieving this goal, the promotion will be toned down.

All Types of Retirement Home Services India

All Types of Retirement Home Services India The largely ignored ideas of retirement homes in India has been slowly witnessing the increased among consumer across India. The senior citizens are becoming independent and financially stronger than the past. The old-aged persons are now in the search of luxurious facilities for various retirement home projects. Below are the all types of retirement homes in India: Independent Living Home: This type of homes is the oldest concept which was famous in the Indian society. Most of the persons save money in their working day for purchase of a plot and build a small to live in after retirement. With the ample of increase in real estate in India, the rising construction costs increases. But, supervising the daily construction activity was a tough task. Senior Citizen Communities: Senior citizen communities of the destinations have been now replacing the old traditional ways of living homes. Recently, most builders are dedicating senior citizen communities with a host of amenities consisting easy access to the transport, hospital, banks, and other daily necessities. Senior citizen communities are also giving adequate security and hospital services for 24-hours. They are the emotional support for the old citizens after retirement. Assisted Living Homes: With the increase of age, senior citizens need constant medical attention as well as aid. These houses are the ideas which allows elderly to live with an assistant including family member. It can be a nurse or helper. The assisted living houses are a newer concept in India but are likely to pick up in the near future. The benefit of having a medical help also decreases the traveling time to hospitals. They are very useful for people for the people who have some disabilities or health problems. Old Age Homes: Old age homes or skilled nursing care communities are usually built at a near proximity to hospitals. The old age homes have an in-house medical team checking and monitoring the health issues of the old-aged people. They are prone to infections so these old age homes. The old body is very sensitive to diseases and these old age homes act like a nursing care center. Nowadays, the convalescent home services are in joint collaboration between hospital management teams and builders. All these retirement homes in India are offering shelter to the old-aged people after retirement. India has diverse demographic conditions with different financial conditions so now retirement homes are the boom for the old-aged people.

Somalia Essay Example | Topics and Well Written Essays - 500 words

Somalia - Essay Example The international community has on many occasions tried to establish a democratic Somali, the most recent being the Transition Federal Government(TFG) that was overrun by the Union of Islamic Courts(UIC) in 2006. Just as in the previous administration, TFG was plagued by intense power struggles among the different factions and clans that eventually undermined its objectives of democratizing the country. Since then, Somali remains a failed state characterized by unstructured rules by Islamic factions and more piracy in the high seas (Samatar, 1991, p9). In order to transform the country from the current state to a democratic country, high sense of patriotism and nationalism among all Somali clans should be established so that they can tolerate each other and respect the rule of law. According to Laitin (1977, pp26-29), establishing a constitution that has the support of the majority people is a fundamental requirement for establishing democracy in a country. Equally important, the con stitution should be enforced by independent and strong institutional framework where rule of the land reigns over personal or specific groups.

How to find answers within your company Case Study

How to find answers within your company - Case Study Example The higher end of this tail is composed of the expert contents and lower end of the tail is composed of peer-assisted contents. The company is required to subsidize content writers through an absolute or relative reward system. The segregation of contents based on their quality is essential for improving the quality of information provided by an internal knowledge market. The quality of content improves gradually when peer comments, criticize and reorganize contents on a question. Most of the companies award points on a specific scale for the improving the quality of contents. Respect of individual’s privacy plays a significant role in the success of an internal knowledge market. The platform should allow the knowledge seeker and provide to remain anonymous. This anonymity will protect the ego of knowledge seeker and will increase the freedom of providing answers to controversial contents. There internal knowledge market can cause accumulation of knowledge for personal gains if relative performances are use to decide about the awardees. Relative incentives are given to best performers only, this can discourages knowledge sharing because peers can save best trick for competitive advantage. This can be avoided by absolute rewards where there is no loser but peers can support each other to improve personal shortcomings. The concept of internal knowledge markets is quite new and the designs of internal markets are still evolving. Different companies are migrating from traditional hierarchical knowledge market to internal knowledge markets. In the first phase of market development various implementation of the market can be studied to develop a prototype of internal knowledge market. In the second phase companies needs to design policies that can encourage knowledge sharing. It must not only be vertical or a top down knowledge flow but horizontal

Comparing John Stuart Mills The Subjection of Women and Florence Night

Comparing John Stuart Mill's The Subjection of Women and Florence Nightingale's Cassandra For thousands of years, women have struggled under the domination of men. In a great many societies around the world, men hold the power and women have to fight for their roles as equals in these patriarchal societies. Florence Nightingale wrote about such a society in her piece, Cassandra, and John Stuart Mill wrote further on the subject in his essay The Subjection of Women. These two pieces explore the same basic idea, but there are differences as well. While they both recognize its presence, Mill blames the subjection of women on custom, and Nightingale blames it on society. These appear to be different arguments, but they may be more similar than they seem. Mill’s and Nightingale’s work both have the main theme of men dominating over women. Mill introduces his work with, â€Å"the principle which regulates the existing social relations between the two sexes — the legal subordination of one sex to the other — is wrong in itself†¦and it ought to be replaced by a principle of perfect equality† (Mill 1156), letting the reader know his stance on the issue right away. Nightingale’s article also starts off with a strong statement in the form of a question. She wonders why women are given such useful gifts if utilizing them is socially unacceptable: â€Å"Why have women passion, intellect, moral activity...and a place in society where no one of the three can be exercised?† (Nightingale 1734). Although these works both have the same thread running through them, they place the blame for the occurrence in different places. In Mill’s essay, he places the blame for the suffrage of woman on custom. He says, â€Å"custom...affords i... ... sound like completely different arguments; however, they are both placing the blame on one relationship. Custom and society exist together in a dependent relationship. One cannot be without the other. Custom defines what society does, and society does what custom defines; therefore, this relationship is blamed for the subjection of women in these two pieces. They may appear to have different arguments, but they are really arguing the same thing. This enforces the ideas Mill and Nightingale convey in their work: two different things seemed to have been blamed, and yet, after further analysis, the blame ended up resting in the same place. We can conclude that the subjection of women is likely to rest on this particular relationship because both of their arguments boil down to it, and Mill’s and Nightingale’s essays are more similar than at first believed to be.

Indigo Book and Music Essay

Q1 When two organizations merge what type of structure issues doyou think might need to addressed?When Reisman was made a task to merging two organizations intoone, Indigo and Chapter both had similar organizational structure -afunctional based design.Indigo’s corporate structure, for instance consisted of departmentssuch as marketing, human resources, and retail. However, the neworganization suddenly had 90 big- box stores and close to 7,000employees. Moreover, with the take over, Indigo gained control of thenation wide.So when these two types’ organizations merge they can chose therecustomers and product mix and the assets which they have combined,the resources and the common functions which they have. They alsoset staffing numbers and decide salary levels. All customers, privateand corporate, no matter what size, are the responsibility of a localbranch. That means that even a large global customer such as Volvo ismanaged by a branch office. However, a branch office â€Å"buy in† specialist services it may need in servicing important customers likeVolvo. Each branch manger is also responsible for branch performance,which is measured by ratio of costs divided by revenues, and all thebanks branches are benchmarked against each other. if a branch startsunderperforming the regional office will offer advice and examples of what other branches have done. And to stop predatory competitionbetween its own branches, the company has set strict geographicalboundaries. Q2 What role do you think organizational structure plays in anorganization’s efficiency and effectiveness?Organizational structure is the formal arrangements of jobs within anorganization. When mangers develop or change the structure they’reengaged in organizational design. The challenge for managers is todesign an organizational structure that allows employees to effectivelyand efficiently do their work.

Pros And Cons Of Vaccination - 750 Words

The Benefits and Dangers of Vaccinations There are many types of vaccinations used for many types of illnesses. They can vary from some small illness to a deadly illness that is very contagious. Some vaccinations are used for DPT (Diptheria, Pertussis, Tetanus), Diptheria, Pertussis, Tetanus, Poliomyelitis and MMR (Measles, Mumps, Rubella). There are many pros of vaccinations. One of them is most healthcare professionals believe ion their effectiveness. It is believed that vaccinations are the cause of a decline in childhood diseases. They also can prevent life threatening illnesses. Many illnesses no longer exist because of certain vaccinations. Thousands of people are killed by illnesses every year. They also protect you in travel. That†¦show more content†¦Saying that vaccinations help 100% would also be giving parents false information which will lead to them deciding not to do that to their kids. Some people get more diseases than others. A child whose mom has been thro ugh drug abuse is genetically more likely to contract many illnesses and diseases. This may make the use of vaccinations a little less useful than it normally would be. Also, it is not possible tom get rid of all of the diseases in the world. Diseases and illnesses are constantly changing. With this that means they are evolving to fight back against vaccinations too. It is said that vaccinations are now only creating new diseases and illnesses that are more powerful than the ones now. Also, vaccinations could be against people’s moral beliefs. Some people religions believe that vaccinations are wrong to do. However, some school systems now require students to be caught up to a certain vaccination date. This is to keep the kids healthy and to prevent them from getting illnesses and diseases. This leaves some of society in unrest due to schooling systems requiring this. Also, immunity lasts longer if it is created by natural circumstances. 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