Franchise Right of First Refusal by xio35908

VIEWS: 68 PAGES: 2

More Info
									              Start A Franchise
Franchising is seen as very lucrative way to start a business. For this
assignment you and you business partners are going to research a franchise
that you are interested in starting. You must conduct thorough research
in order to find out what you need as far as capital, franchise
agreements, and distribution contracts. There are several parts to this
assignment that are outlined below.

   1. Pick a Franchise to start in the greater Seattle area
         a. Create a chart of advantages and disadvantages for that
            franchise compared to starting an independent business in the
            same industry
   2. Research the Franchise/Interview a franchise owner
         a. Create a mock contract that includes:
              i. What are the qualifications to be an owner? Work
                 experience? Net worth? Other?
             ii. What does the initial franchise fee cover? Does it include
                 a starting inventory of supplies and products?
           iii. How are the periodic royalties calculated and when are they
                 paid?
             iv. Are all trademarks and names legally protected?
              v. Who selects the location of your business?
             vi. Are you assigned an exclusive territory?
           vii. If the territory is not exclusive, does the franchise have
                 the right of first refusal on additional franchises
                 established in nearby locations?
          viii. Is the franchisee required to purchase equipment and
                 supplies from the franchisor or other suppliers?
             ix. Under what conditions can the franchisor and/or the
                 franchisee terminate the franchise agreement?
              x. Can the franchise be assigned to heirs?
             xi. Who provides and pays for advertising and promotional
                 items?
   3. Create an opening advertising campaign
         a. Include real costs (cite sources)
   4. Prepare a presentation containing your information

Other than going to the corporate franchisor websites, here are some other
resources to use:
http://www.entrepreneur.com/franchises/index.html
http://en.wikipedia.org/wiki/Franchising
http://money.howstuffworks.com/franchising.htm
http://www.franchiseopportunities.com/
http://www.franchiseexpo.com/
www.sba.gov/idc/groups/public/documents/sba_homepage/pub_mp26.pdf
http://www.bestfranchiseopportunities.com/

Grading:
  1. Advantages/Disadvantages Chart                   20 Points
         Start A Franchise
2. Research the Franchise           40 Points
3. Create an advertising campaign        20 Points
4. Presentation                     10 Points


            90 Points Possible

								
To top