Starting a Franchise

Written Assignment WRITTEN ASSIGNMENT 1

Running head title must be in all CAPS in accordance with APA format

Starting a Franchise

Ja’Niya Ladson

Department of Business and Entrepreneurship

BA130OL- Introduction to Business

Dr. Wilton Stewart

March 21, 2021

Grade Breakdown

>Communication: 17.00 points out of 20 points

>Analysis: 16.00 points out of 20 points

>Application: 17.50 points out of 20 points

>Effective Use: 17.50 points out of 20 possible points (error in APA format)

>Style: 17.00 points out of 20 possible points.

Remarks:

• Running must be in all CAPS.

• Errors noted with Source entries in reference list. See professor’s comments.

• Excess space noted on page 2, 3, and 7. See professor’s comments in document.

Commented [WS1]: Excess space at top of page. Entire document must be double spaced in accordance with APA format. See article 2.21 on page 45 of APA Manual 7th ed.

Written Assignment WRITTEN ASSIGNMENT 2

Franchise opportunity

The selected franchise opportunity is the Yorgurtini franchise opportunity. The Tempe

which is an Arizona-based chain decided to announce its plan to franchise the concept. The

franchisor was looking forward to establishing a franchise system after the interest that the

customers expressed. The franchisor has established a strong following in Arizona and

recognition all over the United States. With more than 65 Toppings, this would be a very good

franchise opportunity. The franchisor will sell the right to open stores and sell products using its

expertise, intellectual property, and brand. The original or existing business will sell the right to

do business and use the name to the starting companies.

Questions

One of the questions to evaluate a prospective franchise is whether the franchisor can

help in finding a suitable location for the business. Depending on the place where the business

will be opened, the franchisor should have basic knowledge concerning the best site in that area.

The franchisor should assist in finding the best site for the franchise and help with lease

negotiations (Gitman, 2018).

Another question that can be asked while evaluating the franchise opportunity is whether

the franchisor can provide financial assistance. A good franchisor should be able to assist the

franchisee with financial help or provide lender recommendations through the Small Business

Administration (Kuratko, 2016).

Written Assignment WRITTEN ASSIGNMENT 3

The third question should focus on the way disagreements are resolved. Even though

there is not franchisee that would want to be in conflict with the franchisor, it is important to

know the way in which conflicts will be resolved. It is also important to know whether the

franchisor has pending law suits or disagreements with other franchisees.

The fourth question is whether the franchisor has a training program and what the

program involves. Besides the operation of the business, it is important to find out whether the

franchisor has a training program. It is also important to know the support provided during the

training (Kuratko, 2016).

The fifth question is whether the franchisor is forecasting to make profits. The franchisee

should consider the profit forecasts and cash flow of the business. This can help to determine

whether the business will do well in the market.

Franchise financial obligation

Franchise financial obligation is an agreement and disclosure document that should set

the payments needed in order to enter and exit the franchise. This document should also set the

recurring payments that needed in the entire period of business (Gitman, 2018). Such payments

include marketing fee and royalty fee. All these fees increase the cost of starting and running the

business and must be discussed at the beginning. Many franchisors do not provide financial data

on the expected turnover of the franchise. This means that the franchisee has to prepare their

budget and expected cash flow.

Commented [WS2]: Incomplete response. This response did not describe what the specific franchise financial obligation would be to the franchisor?

•What is the initial deposit to acquire the franchise?

•How much can be financed over a period of time?

•What is the maximum amount that can be financed?

Commented [WS3]: Excess space at bottom of page; entire document must be double spaced.

Written Assignment WRITTEN ASSIGNMENT 4

Readiness

In case I had the necessary financial resources to acquire the franchise, I would acquire it

because I am ready to be a franchisee. I have learnt about franchise and I have the knowledge

and skills needed to run a franchise. I also know how to evaluate a franchise and know whether it

is a good opportunity. I am also ready to be a franchisee because I have the zeal and

determination to start and business and run it. From the few businesses I have been running, I

have acquired a lot of knowledge on business and I can apply it to make the best out of the

franchise opportunity.

Commented [WS4]: How can you be ready if the above question was not answered ➔ Describe the franchise financial obligation?

Commented [WS5]: Excess space at top of page. Header should be located at the top of the page and not after one line space.

Written Assignment WRITTEN ASSIGNMENT 5

References

Gitman, L. J., McDaniel, C., Shah, A. J., Reece, M., Koffel, L., Talsma, B., Hyatt, J. C., ...

OpenStax College,. (2018). Introduction to business. Houston, Texas : OpenStax College,

Rice University.

Kuratko, D. F. (2016). Entrepreneurship: Theory, process, and practice. Nelson Education.

Commented [WS6]: Improper format. ➔ information added that is not part of the format.