Business Level I
Monday, April 27, 2020
Hello Level I students. Your assignments last week looked good. It seems like most of you have a good basic knowledge of business ownership. Keep in mind that those of you moving on to Level II next year will get a good review of those ownership concepts. Let’s move on to franchising!!!!! I am sure that you are already familiar with MANY franchises – McDonald’s, Taco Bell, Marriott Hotels, H&R Block to name a few. These are considered business format franchises. There are also product distribution franchises that simply sell the franchiser’s products. Some well known product distribution franchises are Pepsi and Ford Motor Company. There are a lot of pros and cons to owning a franchise. But, if you are interested in entrepreneurship and have some capital to invest, franchising is a great way to “own” your own business.
Franchising is defined by state and federal laws as a business relationship between two parties that gives: 1. a person or group of people (the franchisee) the right to sell a product or service using a trademark or trade name of another business (the franchiser) 2. The franchisee the right to market a product or service using the operating methods of the franchiser and 3. The franchisee the obligation to pay the franchiser fees for these rights.
So basically, you can contact Subway corporate offices, let them know you want to buy a Subway location. You pay them a franchise fee, they provide you with training and the “ok” to use their name, their product distributors, their marketing ideas. When you make a profit, you OWE them some of the money (called a royalty fee). But basically you are your own boss and you can make money. Now, it is MUCH MORE COMPLICATED than this, but at the heart of franchising, this is basically what happens. 🙂
Assignment #1: Handout link below. I am providing you with a couple of articles I would like for you to read. Drawing from the information in the articles, you will answer some questions on the pros and cons of owning a franchise.
The assignment has three parts – They are all based on the articles that are on the worksheet. Please do not try and complete the three parts until you have read both articles. You may also research the internet for additional information to help you with the three parts of this assignment.
Also, I am providing a copy of a VENN diagram below. You should use this as a guide to create your own VENN diagram for Part three of your assignment above. You will use the diagram to note how franchising and business opportunity ownership are the same (middle section of diagram) and how they are different (outer sections of diagram). I’m sure that you have used a VENN diagram before, and should have no problem completing the assignment.
SO, you will send me two documents this week: The first document will contain parts one and two of the handout. The second document will be a VENN diagram which will be created by you and completed with information on franchising and business opportunities.
Assignments are due by Friday, May 1st at 3:30 – Let me know if you have questions. Stay safe!