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Phil acquired the franchise rights (master franchisee/area developer) to the State of Texas for a fastgrowing automotive repair franchise (think Midas or Penzoil), and was confident that John would be agreat fit a franchisee in this system. Phil even offered to provide the funding for John and Joan to open asmany as a dozen locations in the Houston marketplace.For assignment 3, you must analyze the advantages and disadvantages of franchising. Thereafter, youmust discuss whether franchising is a viable option for John and Joan.More specifically, in your paper you will address the following:Discuss the advantages of franchisingDiscuss the disadvantages of franchisingEvaluate the franchising option and take a position as to why or why shouldn’t John and Joan franchisewith Phil. Provide strong support for your recommendation. Purpose: Based on a provided small business concept (CASE STUDY), students will evaluatethe economic potential of a company using the franchise model. Students will assess thepotential for a business owner to franchise or to select an alternative decision to expanding.Instructions:This assignment is the third of three assignments. In this paper, students will be given a scenariolocated under Week 8 content. In this assignment, a successful local business owner is interestedin expanding and wants to determine whether to franchise or to open additional locations.Students will use the knowledge and skills learned in the previous two assignments to completethis final assessment.Step 1: Read the scenario presented under Week 8Step 2: Create a Word or Rich Text Format (RTF) document that is double-spaced, 12-pointfont. The final product will be between 5-6 pages in length excluding the title page andreference page;Step 3: Create a title page with your name, the course name, the date, and the instructor’s name;Step 4: Create three sections in the paper;o Introductiono Advantages of Franchisingo Disadvantages of Franchisingo Economic AnalysisStep 5: Before writing the paper, review the grading rubric for the assignment. Step 6: In writing this paper, third person writing is required. What this means is that there areno words such as “I, me, my, we, or us” (first person writing), nor is there use of “you or your”(second person writing). If uncertain how to write in the third person, view this link:http://www.quickanddirtytips.com/education/grammar/first-second-and-third-personStep 7: In writing this assignment, students are asked to support the reasoning using in-textcitations and a reference list. A reference within a reference list cannot exist without anassociated in-text citation and vice versa. View the sample APA paper under Week 4 content.You must cite at least three references using APA format like the example below.Step 8: In writing this assignment, students are expected to paraphrase and not use directquotes. Learn to paraphrase by reviewing this link:https://writing.wisc.edu/Handbook/QPA_paraphrase2.htmlStep 9: Use the course content and any necessary outside research to develop an economicoutlook analysis. In your paper, respond to the following questions:Discuss the advantages of franchisingDiscuss the disadvantages of franchisingEvaluate the franchising option and take a position as to why or why not the businessowner should franchise. Provide strong support for your recommendation. CASE STUDY The Case: Which Way to GoJohn Phillips is ready to make a significant change in his life, but he is not surewhich way to go. As a regional operations manager in the Quizno’s Sandwich Restaurant franchise company he has moved up quickly and has been offered the VicePresident of Franchise Development position in the corporate headquarters in Denver,Colorado. His family is happy living in Houston, Texas but this is a great position, onehe has worked hard for the past twenty years to get.Growing up in Houston, Texas and working at his step-dad’s radiator repair shopafter high school seemed to be the right thing to do, especially since he could not affordto go to college. Yet, after a few years and with a new baby on the way, John started tothink about his future. Realizing that the radiator business was not interesting to himand that his step-dad did not intend for him to take it over, he began looking for anotheropportunity. His wife, Joan, was working as a bookkeeper for a small but growingfranchise company that was looking for an operations manager. She told John about itand he applied. During the interview, he explained that he was ready for a change andwould do whatever it takes to learn the business and be an asset to the company. Thefranchise was an automotive paint touch-up business and the owner felt John wouldrelate to the franchisees, which were generally “blue-collar” type individuals. John didnot know anything about franchising but thought the business model was intriguing andhe soon become proficient with the business. After a few years, John and Joan decidedthat they liked the franchise concept so much they asked if they could become franchisees and move to Colorado. The owner was willing to support the endeavor andhelped them get into the business. After several years building the business up, a localbusinessman approached John asking if he would sell the business to him. John andJoan really missed Houston, and they felt like they had done as much growing with thebusiness as possible in their territory, so they agreed to sell and move back to Texas.Once back in Texas John began looking for a job or another business to enter.Quizno’s was a fast growing and exciting business, giving Subway a run for their moneywith their “toasted” sub sandwiches. John and Joan decided that they would join thefray and they purchased a single-unit that they opened near their home. Their kidswere teenagers now and it seemed to make sense as a place for them to learn businessand work at the store. The store opened and did well enough for them to qualify for asecond unit. Shortly thereafter, an existing unit that was underperforming was put onthe market and they purchased it. Operating a three-unit franchise proved to be challenging. Especially the turn-around of the underperforming unit, which took muchlonger than they had expected. A developer in Houston was buying up Quizno’s unitsfrom franchisees and approach John and Joan about buying their units. While theywere contemplating the offer, the Quizno’s regional president contacted John aboutjoining the company to support franchisees in the Houston market. Deciding that thetiming was right, they sold their three stores and John went to work for Quizno’s.John understood the plight of the Quizno franchisees and was able to gain theirtrust and help them grow their businesses. Soon his region was outperforming all theother regions across the country. It was clear he had found his niche and the company took notice and he was quickly moved into a regional manager position to support over800 units in several southern States.After a few years, two unexpected events came along that helped John realizejust how far he had come since working in his step-dad’s radiator shop. First, a franchise-consulting firm contacted him to see if he might be interested in joining theirfirm. The company provided consultation to franchise companies, and with his operational support experience, as well as having been a franchisee, they wereconfident he could be very successful. The offer was to become a partner and hisincome would be based on a portion of the profit generated by the group of 10consultants. He would in essence be an independent contractor working for himselfunder their brand and with some administrative support. Secondly, a friend from hischurch named Phil approached John and Joan about a new business venture. Phil hadacquired the franchise rights to the State of Texas for a fast growing automotive repairfranchise, and he was confident John would be a super-star in the chain. Phil offered toprovide the funding for John and Joan to open as many as a dozen locations in theHouston marketplace.John and Joan headed to the beach for the weekend to think about their future.A prestigious position in a franchise company was certainly appealing, with a steadysalary, good benefits package and relocation reimbursement. However, they wouldhave to relocate to Denver and leave their two children in Texas, as they were both incollege. Being confident in his ability, John liked the idea of joining the consultingpractice, as it would reward him for his efforts and expertise. The sky would be the limit if he was able to build a strong base of clients, and with the firms administrative supporthe could focus his time on taking care of clients. Joan really liked Phil from their churchand respected him as a very successful Christian businessperson. She was confidentthat they could be successful with the automotive franchises because of Phil’sreputation. John liked the idea of owning enough franchises that he would not have towork in them day-to-day, but focus on the overall performance, branding and expansion.As the weekend wound down, it was time to decide on their future for the next 10-15years, but neither were sure which way to go…

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