_2-1 Franchises (1)

Why would some companies elect to have company-owned stores/locations versus franchises? Why would others want only franchises?  Name five companies that have both company-owned stores/locations and franchises.

When trying to determine the best business type to launch, a restaurant owner is confused about what differentiates a sole proprietorship from a partnership. Which of the following could be used to explain the difference?   a) A partnership is considered a special entity, whereas a sole proprietorship is not.   b) A sole proprietorship has a sole owner who takes on all the debt instead of sharing it.   c) A partnership has two owners while a sole proprietorship has a holding company.   d) A partnership is a very large business with smaller companies underneath.

We merged… Now What?   Earlier this month, your company, a running equipment designer and manufacturer called Runners Paradise, merged with a smaller clothing design company called Active leak. Your compant initiated the buyout because of the excellent design team at Active Leak and their brand recognition, specifically for their MP3-integrated running shorts. Runners Paradise has 35 employees and Active Leak has 10 employees. At Active leak, the owner, who often was too busy doing other tasks, handled the HRM roles. As a result, Active Leak has no strategic plan, and you are wondering if you should develop a strategic plan, given this change. Here are the things you have accomplished so far: Reviewed compensation and adjusted salaries for the sake of fairness. Communicated this to all affected employees Developed job requirements for current and new jobs Had each old and new employee fill out a skills inventory Excel document, which has been merged into database From this point, you…

1. Setting Up a Business Your friend, Olivia Graves, is going to start her own chocolate shop, called Chocolate-By-Design. Olivia is an expert candy maker and one of the city's top pastry chefs. Olivia has come to you for advice on what type of business Chocolate-By-Design should be-a sole proprietorship, partner- ship, or corporation. Create a report comparing the three different types of businesses, along with your recommendation for Chocolate-By-Design's business structure.

17- The outright purchase of a business is a) O Merger b) O 0311165 Joint venture C) Strategic allegiance d) Acquisition

What is the appropriate description for a chain-style franchise?  A. A franchisee sells a franchisor’s product in a specific geographic area. B. A franchisee makes or sells a franchisor’s product under their own business name or organization. C. A franchisee produces and sells a franchisor’s product using the franchisor’s name.

Why does a partnership require a partnership agreement? ➢ Identify some of the critical features of a partnership agreement.

Briefly describe the reasons why a company might wish to take over another company.”

11. What are some resources available to you as a prospective franchisee to identify franchise opportunities? t

1. How much is the Starting Capital/loan when doing a business plan for a coffee shop? (What are the breakdown of your capital, cost and expenses?) 2. Will partnership in business grow successfully when building a coffee shop?

1. Corporation size, Employees. When a coporation type business has about over 4,000 employees what does that mean? Does it make the firm a lot more profitable or productive than the other corporations/competitors? Explain.

What are the different types franchise fees? (Explain each one of them)

To qualify as a professional corporation what is required?

Explain the FIVE (5) disadvantages of operating a franchise business. (150 words)

1. Give THREE strength of veil business. 2. Give THREE weakness of veil business. 3. Give THREE oppurtunities of veil business. 4. Give THREE threat of veil business.

In evaluating whether or not to buy a franchise operation, the potential investor should as a series of questions. What questions should the potential investor ask about the franchisor, the franchise, the market, and the potential investor (him or herself)?

Why Buying a Franchise is in general good business, Some sources estimate that a franchise has a 90% or better chance of success. Some of the reasons ?

1. Indicate the parts that would benefit from a business plan?

A significant advantage a franchisee has over an independent business is the participation in the franchisor's largely due to the the franchise offers. * centralized buying power; economies of scale economies of scale; territorial protection centralized buying power; brand protection centralized buying power; buying insight

What are the legal forms (company forms) of private companies and what are the advantages and disadvantages of the individual company forms (do you differentiate, from your point of view, between the start-up phase and ongoing work) ?

1. What is the financial status and reputation of franchise food and drink.

Ben and Eric are opening a comic bookstore to be registered as E&B Comic Bookstore Co. There is no other competing comic bookstore in the area. Their fundamental decision is how to organize the business and they anticipate a substantial profit in the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow. They feel the corporate form of operation will be best for the long term. They seek your advice. Requirements: What is the main advantage they gain by selecting a corporate form of business now?

Given is a doctor who is forming her own medical practice. She wants her practice to be flexible , simple to run , and free from required meetings , minutes or resolutions . Her goal is to blend the best characteristics of corporations , partnerships and sole proprietorships . What form of business ownership seems most in-line with Gwen’s goals ? A)C corporation B)cooperative C)joint venture D)limited liability company E)S corporation

Task 3)   You may consider franchising your business at some point. Discuss with justification, the type and model of franchise that your business will enter into. (The selected business is a Solar Panel Company)

In the case of a franchise, there's no central ownership actively involved with all of the stores. Investors often purchase more than one franchise, but many owners/operators typically run just one location.Explain the FIVE (5) disadvantages of operating a franchise business. (150 words)

How does a regular (C)corporation differ from a not-forprofit corporation?

The most significant disadvantage of starting a business from scratch is: a. Not being a franchise O b. The risk of failure c. Having competition d. Having few employees

Define the following types of organizations and give an example of each. Also, how are profits taxed in each organization? Sole proprietorship Partnership LLC S-Corporation C-Corporation Which of the above organizations do you think would be the best for a start-up? Why?