Author Question: When is franchising appropriate (from the business owner's point of view)? Provide an example of ... (Read 142 times)

nmorano1 · **on:** Jul 6, 2018

When is franchising appropriate (from the business owner's point of view)? Provide an example of when franchising is appropriate and when it is inappropriate.

What will be an ideal response?

Question 2

Standard business models depict existing plans or recipes firms can use to determine how they will create, deliver, and capture value for their stakeholders.

Indicate whether the statement is true or false

katkat_flores · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

Franchising is appropriate when a firm has a strong or a potentially strong trademark, a well-designed business method, and a desire to grow. An example is Panera Bread. The company has a strong trademark (in the fast-casual dining segment), a well-designed business method, and a desire to grow. In some instances, franchising is not appropriate. For example, franchising would not work for Wal-Mart. While Panera Bread has a large number of franchised outlets, each individual outlet is relatively small and has a limited menu, and policies and procedures can be written to cover almost any contingency. In contrast, although Wal-Mart is similar to Burger King in that it too has a strong trademark and thousands of outlets, Wal-Mart stores are much larger, more expensive to build, and more complex to run than Panera Bread restaurants. It would also be nearly impossible for Wal-Mart to find an adequate number of qualified people who would have the financial capital and expertise to open Wal-Mart stores on their own.

Answer to Question 2

TRUE