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Overview, Learning Objectives, Class Preparation

CHAPTER 5-Franchising and Other Alternatives

OVERVIEW

The third option for entry into small business, franchising, is explored in this chapter. Franchising provides some important advantages to the entrepreneur particularly during the planning and start-up phases of the enterprise. The history of franchising includes a number of spectacular successes as well as a number of unscrupulous franchisers. The abuses of the unethical operators have led to attempts to regulate the franchising practice largely by protecting the rights of franchisees and prospective franchisees.

LEARNING OBJECTIVES

    • Franchising has become an extremely popular way of going into business.
    • Being a part of a franchise chain offers many significant advantages to an entrepreneur.
    • Anyone interested in buying a franchise is provided legal protection from being rushed into a premature decision by the franchiser.
    • Despite government regulations, many individuals are cheated by unscrupulous sellers of franchises and business opportunities.
    • The failure rate of franchises, according to recently gathered data, is slightly higher than that of independent businesses, contrary to popular opinion.
 

Format for Discussion Questions: Typed, (Question in bold) followed by your answer. May be submitted in class paper copy, email, or Blackboard.

Classprep:

READ CHAPTER 5
READ Case #4

 

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