Chapter 5, Problem 3VC

Summary Introduction

Case summary:

Company S, the largest chain of drive-in fast-food restaurant in the U.S. The company knows the value of motivated entrepreneurs as the owner started from doing a job as a milkman. After starting own business with go-getter attitude, Mr. T opened several restaurants making all major decisions. As a result, most of the Mr. T’s early ventures failed but Mr. T didn’t let those initial disappointments set him back. After analyzing, Mr. T decided to expand the area for parking for its customers as well as hired servers for bringing food directly to the customer’s cars.

This approach helped a lot in the growth of the business. A local grocer named Mr. C approached for investing in the business but both of them ended up forming partnership. Later on both decided to expand the brand by franchising as they didn’t want to take any more partners. The business continued growing at a sound speed.

Characters in the case:

The main characters in the case are Company S, Mr. T and Mr. C.

Adequate information:

Mr. T, owner of the company S after coming into the partnership with Mr. C decided not to take more partners and started expanding business by franchising.

To determine:

Questions to be asked before becoming a franchise in a company like S.