Case summary: More than one half million businesses are launched in United States. Every one out of ten aspiring businesses is franchise based. T and J opened a pizza store in
It is very risky, difficult and time consuming to start a business from scratch. D has built the reputation and brand name in market with over 50 years of experience. That is why many aspiring business men want to open D franchise rather than a new restaurant.
D provide market and management assistance and training. D believe that for the success of the company, success of franchises is very important. Valuable promotions by the company itself let the franchise focus on their work rather than on promotional activities. D assists the franchise to get proper location for their business.
United States remains the largest market for the company with over 5,000 stores. Menu might be different in some stores and the toppings are also unique in some stores of D. Every aspect of the D like uniform, store layout or training program remains same.
With the advancement of technology D also has provided various innovative platforms to order. The franchise business has been considered to be the most developed business model ever.
Characters in the case: Mr. J and Mr. T.
Adequate information: Mr. J and Mr. T started a pizza store with name DN in1960 but Mr. J sold his share to Mr. T and Mr. T continued the business as sole proprietor with the name D. Mr. T then started to franchise D and now D has over 18,000 franchises across the world.
To determine: The difference between franchise and partnership.
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Chapter 5 Solutions
UNDERSTANDING BUSINESS (LL)
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