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The opportunity of a lifetime…

Our Group Name Is:

Name ID Intake

Kazi Muhitul Islam 14152101113 36

Sirin Akter 14152101525 36

Md. Mizanur Rahman 14151101034 35

Md. Mustafijur
Rahman 14152101529 36

Kazi Md. Asfaq Hossain 14151101030 35

Case in Brief
Joe Willingham said to his wife Allie that he found the opportunity of
lifetime. He get the idea of setting up his own independent business from
scratch and that is investment in franchise for future benefits. The main
thing is the profit potential this business has a franchiser can give him
the support he need.
American speedy print is just a small franchise at the business Expo.
There were all kinds of franchise represented. The company is growing
so fast that they have temporarily run out of their normal literature.

He could pay the $10,000 franchise fee and lease most of the equipment
he need to get started. He can lease all the equipment from the
franchiser. The company would help him with his grand opening and
would help him compiled a list of potential customers.

He would print anything like fliers, posters, booklets, newsletters,

advertising pieces and so on.
Question to be Answered

What advice would you offer Joe about investing in

this franchise? Explain.

Map out a plan for Joe to use in finding the right

franchise for him. what can Joe do to protect him-self
from making a bad franchise investment?

Summarize the advantages and disadvantages Joe can

expect if he buys a franchise.
Question to be Answered
Answered to the Questions 1:-
Q. No. 1:- What advice would you offer Joe about investing in this franchise? Explain.
At first I would offer Joe for some Advice:-

1. Choose his business sector carefully.

2. Research about market of this business.
3. Select his franchises or carefully.
4. Consider his franchise options.
5. Develop a very detailed business plan.
6. Create a great selling process.
7. Talk to existing franchises.
8. Evaluate the different business model or offer.
9. Gain knowledge and preparation about this business.
10. Ask the franchiser some tough questions.
Answered to the Questions 1. Continue…

After that I would advice to Joe Willingham has to invest in

this Franchise because:-

1. Life time opportunity and give him support.

2. Own independent business.
3. Much profitable business.
4. He can lease all the equipment from the franchiser.
5. The company would help him with his grand opening.
6. The company would help him compile a list of potential
Answered to the Questions 2:-
Q. No: 2:- Map out a plan for Joe to use in finding the right franchise for him. What
can Joe do to protect him-self from making a bad franchise investment?

Joe can find the right franchise for the following steps:-

Step-1:- Ask the company for a copy of their uniform franchise offering circular (UFOC) and
study about it.

Step-2:- Set about investigating the authenticity of the information provided in the

Step-3:- Talk to other franchises of the company to learn about the support provided by the
company in terms of training, advertising, promotions and the profitability. The
information obtained from other franchises.

Step-4:- Be cross checked with the company and all types of information should be
sought from the company. such as the philosophy towards franchises the
company culture, what are the future expansion plans, how would they affect etc.
Answered to the Questions 2. Continue…

Step-5:- finds the propositions feasible.

Step-6:- Looking for location options.

Step-7:- Evaluate the market and revenue.

Step-8:- What would be fixed costs, what be the variable cost, what would
be the profit, what they be sufficient?

And then based on all the above Joe should make his decision.
Answered to the Questions 2. continue….
Joe can protect him-self from making a bad franchise investment for the follow:-

1. Insurances:- All of the damages will be coverage by insurance.

2. Franchisor Pressure:- Avoiding the franchisor investment pressure.

3. Strong Brand:- Reputation of strong brand can be protect bad investment.

4. Proper Strategy:- It does help to protect investment.

5. Training and support:- Franchisor support and training help to protect bad investment.

6. Conflicting FDD information:- The franchise disclosure document contains pertinent

information to help him decide whether to invest in a franchise.

7. Franchisor financial Instability:- Some franchisors rely on investors to help stay in

business, even promising financial support that are not afforded
Answered to the Questions 3:-

Q. No: 3:- Summarize the advantages and disadvantages Joe can

expect if he buys a franchise.
The Advantage to buying franchise:- Some of the advantages - provided that
right franchise- of buying a franchise, include:

Established brand:- Compared to establishing a new business, it will process

an established brand recognized by consumers.

Established business systems:- it will benefit from established business

system and produced that have been tested and proven in the marketplace.

Training & Support:- This includes in initial training and support that should
be ongoing and extend to the business operations.
Answered to the Questions 3. continue….

The Disadvantages of buying franchise:- some of the disadvantages to

buying a franchise, include:

Benefits could prove illusory:- If Joe choose the wrong franchisor and fail
to thoroughly evaluate the franchise agreement, training, and brand
recognition may be non-existent.

Potential for Reduced Margins:- This is will impact his profit margin. so he
should make sure that the franchise opportunity and the value of the
franchise system.
Our study findings suggest that potential franchisees should carefully
investigate new franchisors before investing. The average new franchise
system at the beginning will fail. Fortunately, our study provides criteria for
selecting a new franchise system that is more likely to succeed than the
average system:
• First, the franchisee should seek franchisors that are expanding rapidly. Since
system growth is important to the establishment of the new franchisors’ brand
name, a slowly growing franchise system may not be able to promote its brand
names cost-competitively.

• Second, the franchisee should not seek a franchise system that promises a lot of
field support. Such support

• Third, the franchisee should not be dismayed by the learn headquarters of a new
franchise system.
In our research, we have developed a model to help identify successful new
franchisors. By understanding the model, potential franchisees can find the
franchises that are likely to survive and build valuable brand names. No
matter the industry a franchise system starts in or where it’s located, these
interrelated factors determine the new system’s probability of survival:

•Rapid growth means that the new franchise system reaches minimum
efficient scale to promote the brand name competitively with established

•Allocation of local managerial activity to franchisees and minimized

support services speeds the rate of growth.

•Demonstration of trustworthiness and high quality of operating systems

and other intangible assets through credible commitments attracts
potential franchisees despite low support.
Thank you so much for your time & attention
Keep smiling