Many franchise systems tend to be retail-based. While franchises typically have a greater success rate than new independent businesses, there are some types of retailers that seem to be more suited to franchising than others. In this activity, you need to determine whether a fast-food store/restaurant or a convenience store would be a more appropriate vehicle for franchising?
Type of Material:
Assignment/Worksheet
Recommended Uses:
In class assignment
Homework assignment.
Technical Requirements:
Chrome, Edge.
PDF reader.
Identify Major Learning Goals:
Understand some of the factors that influence franchise decisions.
Determine whether a fast-food store/restaurant or a convenience store would be a more appropriate vehicle for franchising?
Target Student Population:
Undergraduate students (upper-level) taking a marketing distribution class
Prerequisite Knowledge or Skills:
Principles of Marketing class
Content Quality
Rating:
Strengths:
Great quick activity to teach what business types franchising is best suited for.
Provides discussion questions for decisions
Concerns:
The matter is lacking in depth and breadth.
Assumes students understand franchise decisions.
Potential Effectiveness as a Teaching Tool
Rating:
Strengths:
This activity is straightforward.
Since the answer to the question posed could be either business type, the activity helps students engage in critical thinking to determine which business type is best suited using the information provided.
It may be used to stimulate dialogue but would have to be accompanied by a textbook.
Concerns:
The website is focused on fast-food and convenience store franchising. An accompanying case is about a burger restaurant in the UK that opened in the early 2000s. I found an article showing it closed in 2006. There also are cases on New Coke (1985) and Pepsi Next (2011). Given the changes in how we shop for food after COVID, the information seems dated. It is not something I would use in the classroom.
There is a link to an Entrepreneur magazine article dated 2016. Why nothing newer?
The scale to access a franchise is ordinal, making combining information very difficult.
There is a superficial conversation between two fictitious entrepreneurs who want to buy a franchise. There is little detail to aid in decision-making.
Another exercise creates simple scenarios (longest is three-and-a-half lines) for evaluation. The lack of detail hinders any learning.
Franchisees provide so much more than what is listed on the website. The franchisee offers training and guidance. Marketing research must be undertaken in other expansion areas. There are legal requirements (e.g., Federal Trade Commission), and both parties are contractually obligated. You have to establish: fees and royalties (including for marketing), territory size, training provided, evaluate the franchisee's finances, and assess an existing franchisee. Who pays for promotion and how much? If real estate is involved, will the franchisors assist in identifying the best locations? Do franchisees have to buy materials and equipment from the franchiser? What are the capital requirements for franchisors? How quickly does the franchisee want to grow? How fast can they successfully grow?
Ease of Use for Both Students and Faculty
Rating:
Strengths:
This is an incredibly simple activity.
The instructions are on the website and have been duplicated in a pdf for students to download, increasing accessibility.
Concerns:
Could provide more information on franchising
Instructor will have to cover more on franchising
Creative Commons:
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