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Franchise Profile & Presentation

Franchise Profile & Presentation
OBJECTIVE: Give students an opportunity to understand the role of franchising in the small business sector of the American economy. Expose students to business research resources.
FORMAT:  Written report (1250 word minimum, typed, double-spaced) with accompanying Powerpoint presentation – to be presented in-class.
Entrepreneurship:
GOAL:  Provide a basic understanding of the benefits of franchising business operations.
*What product/service is being provided?
*How was the business created? (whose idea,  history of the company).
*Explain the advantages and disadvantages of a parent business (the franchisor) franchising its operations.
Market/Competition:
GOAL:  Provide a basic understanding of the market dynamics.
*Who is the target market? How big is it?
*Who/what is the competition? What impact could they have on your franchise?
*What is the franchisor’s competitive advantage?
Marketing/Promotion:
GOAL:  Provide a basic understanding of the role of marketing in franchising
*Discuss the marketing strategies used for this company – i.e., the 4 P’s.
*Why is this strategy the best choice for this particular business?
*Determine the advertising fee arrangements for the franchisees.
Operations Management:
GOAL:  Provide a basic understanding of the supply chain and procurement strategies
*Identify the procurement process for the parent and its franchisees (e.g.:              central procurement of supplies and/or raw materials?)
*Explain the advantages and disadvantages of the procurement process this             company uses.
Franchise Costs / Term & Conditions:
GOAL:  Provide a basic understanding of the costs associated with opening/operating a franchise
*Determine start up costs and financial requirements for approval.
*Determine if the parent assists in financing the new franchise.
*Identify royalty fees owed to the parent, as well as the payment schedule.
*Determine an estimated break even point from sales:  Determine the amount of time it would take to break even – i.e., for cumulative Revenue to exceed Startup Costs + on going Fixed Costs + Variable Costs.
*What is the term of the franchise agreement? How can you exit?
Human Resource Management
GOAL:  Provide a basic understanding of the staffing and training requirements.
*What are the staffing requirements? Does this company provide corporate training for its franchisees?  If so, what skills are they trying to develop in their franchise owners and their employees?
*Identify advantages and disadvantages of corporate training to both the franchisors and the franchisees.
Investment Pitch
GOAL:  Having analyzed available information on your franchise, make a pitch to potential investors for funding.
References
GOAL:  Cite all research sources appropriately in a bibliography.
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