Case Study : Open For Business

1694 Words7 Pages
Open for Business Shania is a Christian who is considering opening a new business. She is contemplating who she will potential involve in the business as well as the manner in which she will establish the new business. The following is an analysis of the options in which Shania might choose, given the perceived goals and legal implications that will assist her in achieving those goals. Reviewing the Facts Shania Jackson is a married woman, living in Denver, Colorado, who has aspirations of opening a Christian coffeehouse. Her husband, while willing to contribute capital to the business, has no intentions in operating or managing the business. There are a few people that have communicated to Shania that they might be interested in…show more content…
Franchising is defined as “a commercial agreement between a party that owns a trade name or trademark (the franchisor) and party that sells or distributes goods or services using that trade name or trademark (the franchisee) (Kubasek et al., 2015, p. 431). There are key advantages for choosing a franchise when starting a new business. First, there is many times instant brand awareness that is identifiable by potential customers, which you as a new owner do not have to concentrate on building. Secondly, on-going marketing of your business is backed by the power of the established brand, and could be as simple as contributing a fee to a advertising fund that is driven by the franchisor. Thirdly, the Return on Investment (ROI) will most likely be faster as the customers are “ready-made” and eager to buy your product or service. Fourthly, the franchise model provides a built-in support model, both from the franchisor and from other franchisees throughout the region and nation. Lastly, the franchise will provide consistent and extensive training in every aspect of the business (Goldberg, 2015). There are also cons against choosing the franchise. First, the amount of control and autonomy that the business owner will be significantly less than the independent business owner. As a franchisee, you do not “own” the business, but are licensed to operate the franchise store. Secondly, the upfront financial
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