Question

You are an experienced small business owner who would like to become a franchisee of Quick Burger, a nationwide franchise of fast food restaurants. There are some Quick Burger restaurants in your area, but not so many that another franchise would be unprofitable. You are interested in maintaining as much day-to-day control in your potential franchise operations as possible. Before joining a franchise, you want to make sure that the essential terms are clear to both parties. Explain what issues you would need to resolve before entering into a franchise contract with Quick Burger.

Answer 1

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Step-by-step explanation:

In the given case, there are different issues, need to be sorted out before going for the franchise agreement. The first issue is the clarity upon the geographical are for the operation as different franchises of the same chain are operating and it can cause conflict. The second issue is the scope, language and mode of promotional campaigns for a franchise as aggressive promotions, can harm the customers of each other franchises and overall harm to the brand. The third issue is the sharing of data with the franchise on the basis of locality. Whether it is decided by the centralized company center or by the consumers. Not taking it into the consideration, may harm the new franchisee. The fourth issue is the sharing of business data or data of my existing consumer base with the other franchises to help them. It should not happen. The fifth issue is the support in terms of promotion, operation, documentation and other areas of franchisee management for a particular period of time. It should be clear before entering into the franchise agreement.

Besides, the other issues are related to taxation, profit sharing, number of calls committed on a daily basis, treatment of unfair trade practices and ownership of tort of negligence in the restaurant and legal support extended by the company, should be considered before entering into a franchise agreement.