FRANCHISING
1. Small Business Victoria,
http://www.business.vic.gov.au/
Resource Centre. Fact and
Information Sheets. Franchising.
Being a Franchisor.
- Explain what you regard as the five main benefits of forming
a franchise system.
- What disadvantages could there be in forming a franchise
system? Refer to the chapter.
- Outline the five basic elements of a successful franchise
system.
- What aspects need to be considered in a detailed financial
analysis of a franchise system.
2. Small Business Victoria,
http://www.business.vic.gov.au/
Resource Centre. Fact and
Information Sheets. Under New Management Brochures and Information Sheets.
Buying a Franchise.
- How can you check the credentials of the franchisor?
- How can you check the viability of the franchise system?
- What information would you need to determine if your
return on investment as a franchisee is likely to be achieved?
- What particular aspects of the franchising agreement
should you check?
- Who can assist you in determining whether the franchise
outlet is for you?
3. Franchise Council,
http://www.franchise.org.au/
About Franchising.
Franchising Code of Conduct.
- Explain the four elements for an agreement to be
classified as a franchising agreement and therefore subject to the Franchising
Code of Conduct.
- Explain the role of the Australian Competition and
Consumer Commission (ACCC) in relation to the Franchising Code.
- Explain the "cooling off period". Is this adequate
protection for prospective franchisees? Explain.
- Explain the role of the Mediation Adviser.
- When is a "disclosure document" required to be supplied by
a franchisor? What do you believe are the four most important disclosures
required by new franchisees?
- How does the Code seek to ensure that franchisees receive
appropriate advice from sources other than the franchisor? Who should supply
the advice? Explain.
- Under what circumstances, according to the Code, could a
franchisor reasonably withhold consent to the transfer of a franchise? Do you
agree with these circumstances? Explain.
4. Franchise Council,
http://www.franchise.org.au/
Press Room. 2004 Franchise Survey.
You have been asked to speak to a conference of CPAs
regarding franchising. Prepare your paper regarding the following
areas from the 2004 Franchise Survey.
- Franchising recruitment.
- Start up costs of new franchised units.
- Franchisee personal profile.
- Franchising disputes.
5. The Directory of Australian Franchise Opportunities,
http://www.halledit.com.au/
The Australian Franchise Opportunities Exchange.
Alphabetical Index. Focus on Gifts. Moving
Maids.
Aussie Pooch Mobile. Duster Dollies. Just Cuts.
- Compare and contrast the 5 business concepts. What
training and experience is needed for each? Which outlets could be based at
home, and why? What other personal characteristics and abilities could the
franchisor be looking for?
- Compare and contrast the financial details of the
concepts. Is the initial capital sum the only critical financial aspect?
Explain.
- Compare and contrast the franchisor support for the
concepts. What further information is needed with regard to this aspect?
6. Dymocks Booksellers,
http://www.dymocks.com.au/
The Dymocks Story.
- Dymocks began in 1879 in Sydney. How did the firm enter
the 21st century without discarding more than a century of tradition?
- Outline the advantages claimed for the Dymocks Franchise
System. Could there be any disadvantages? Explain.
- Summarise and evaluate the pre-opening and the
post-opening support of the franchise system.
- What further information would you desire before seriously
considering the purchase of a Dymocks franchise?
7. Entrepreneurship and Small Business Resource Web Site,
http://www.prenhall.com/scarbzim/
Small Business and Entrepreneurship Resources.
Franchising.
Nominate 4 sites that you feel would be valuable for a
prospective franchisee. Describe each site and evaluate its usefulness.
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