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 partnership in 1960. J sold the business to his brother after 8 months. DN now changed into sole proprietorship and became D that created franchises with more than 13,000 stores in 80 countries on 6 different continents. 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 provides 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. Country U 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: Questions to be asked before becoming a franchise in a company like D.

Question

Want to see the full answer?

Answer 1

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 5, Problem 3VC

Summary Introduction

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 partnership in 1960. J sold the business to his brother after 8 months. DN now changed into sole proprietorship and became D that created franchises with more than 13,000 stores in 80 countries on 6 different continents.

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 provides 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.

Country U 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: Questions to be asked before becoming a franchise in a company like D.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

5. Is someone an entrepreneur if they buy into a franchise so they can follow a well-established formula for running the operation?

Starting up and managing a business requires one to act responsibly and ethically at all times. It is also imperative that one carefully considers the management team and the opportunities that franchising presents to a business to create a bigger brand name and increased market share 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 needs of the businessperson starting a new business are a major consideration when deciding the best form of business ownership. The kind of business being started is also important to consider when deciding to make your new business a sole proprietorship, partnership, or corporation. Look at the list of new businesses below. , indicate the form of ownership you think would be best for each business and give the reasoning for your selection.

Answer 2

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 5, Problem 3VC

Summary Introduction

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 partnership in 1960. J sold the business to his brother after 8 months. DN now changed into sole proprietorship and became D that created franchises with more than 13,000 stores in 80 countries on 6 different continents.

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 provides 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.

Country U 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: Questions to be asked before becoming a franchise in a company like D.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 5, Problem 3VC

Summary Introduction

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 partnership in 1960. J sold the business to his brother after 8 months. DN now changed into sole proprietorship and became D that created franchises with more than 13,000 stores in 80 countries on 6 different continents.

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 provides 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.

Country U 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: Questions to be asked before becoming a franchise in a company like D.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 5, Problem 3VC

Summary Introduction