Franchising Business, Case Study Example

Franchising Business Case Study

According to the case study, John is faced with two major decisions to make. His wife and he have differing preferences on which choice he should take. John, based on his past performance feels that joining the franchise-consulting firm would be a viable option, which will properly reward him for the great efforts he invests in his work. His wife Joan on a differing pinion feels that accepting the option from their church friend Phil would be an excellent opportunity for John to practice in an area he began with and he understands well given that it forms a major part of his past.

In a perspective approach, the two can consider the various options available for them joining these jobs. These can be best analyzed through a detailed analysis of the consequences relating to each of these jobs. Through this a substantive solution will be found that will benefit both the parties, especially given the far that they have come professionally. The options and consequences are as presented below.

Franchise consulting firm

Franchise consulting firm has a number of advantages and these would benefit him professionally in a number of ways. The following are some of the advantages accrued to this job. First, while performing this business, John will have a number of times to perform other tasks that relate to his career. He can run and manage other businesses as well as engage in the consultancy business (Sherman, 2011, p.112). This would be a good way of generating income from both sides hence opening more financial avenues for him.

Secondly, the franchise business has an advantage of less work at job. The job of consultancy entails giving advice to people willing to venture into the franchise business. Taking up this option will give him an advantage of just advising people. The input here is low and he will have a lot of relief and time to relax after many years of practice in the job. This can give him more time to focus on other things like their family issues as well as their other business ventures (Kaufman, 2009, p.73).

As an advantage on his side, the franchise consultation business will help him improve his knowledge and skills regarding the franchising business. Being a consultant will give him an advantage of advising people with various needs on ways to make their franchise businesses successful. This in turn will give him sufficient exposure to various things related to the franchising business. Similarly, he will develop an inner understanding of venturing into various franchising businesses and the salient ways to make them prosper.

As a franchiser, he will have an advantage of carefully studying the market and gaining an understanding of the market trends that are good. In this way, he can choose to invest on a venture that will make him more successful. Market knowledge is very important in business and being in a position to tell which the best franchise venture is in the market can make one in a very successful position (Sherman, 2011, p.120).

On the other hand, despite the various advantages attached to the franchising business, there are a myriad of disadvantages to it. For instance, the franchising consultancy job may limit him to only offering consultancy functions hence make him abandon other sectors to which he is qualified to work. At his level, John has developed multi skills in the franchising business hence he needs to implement them fully. Getting absorbed into the consultancy job would limit him from performing other functions especially in situations where there are many people doing consultation.

In addition, though the consultancy job may be a viable option, John may not be assured of getting a consistent income especially from the fact that he will be paid by a portion of profits got from the other consultants. This has an implication that his income will come majorly from the profits made out of consultation. One thing about the consultation job is that it is not consistent and it can perform well at one time and change at a different time. This can affect his income despite the company being a big one.

Relatively, if John chooses to accept the appointment, he will be forced to move out of Texas, a place he had longed to live in after getting his second job and relocate to Denver (Shook, C & Shook, R, 2009). This would be a disadvantage to the family since they would be forced to leave their children in Texas who are still in college. This would not be an idea that the children would appreciate especially given the fact that they have been living with their parents since their childhood.

Phil business venture

In this case, a church friend, Phil approached John to involve in a franchise investment. Phil had acquired franchise rights in that state and offered to support John and the family in setting up and running successful franchise for an automotive repair. The following are some of the advantages attached to this.

John has a background of automotive repairs and placing him in an automotive franchise business would help him deliver the best of his abilities. Having worked at his stepfather’s garage for some time after high school, John acquired knowledge and skills relating to maintenance of such. This would place him in the right position to form and manage other new upcoming franchises within the region. A combination of this knowledge with the excellent franchising skills acquired over time would make him get excellent results in the business.

At the same time, John has excellent skills in managing and running franchising businesses, placing him in such a position would make him offer the best of his knowledge. From his experiences in handling franchise businesses, he probably developed the salient skills that would enable him deliver exemplary results.

Given his operations and existence in the franchising market within Texas, John is adequately conversant with the market trends regarding this business. Similarly, he is aware of various potential competitors and their subsequent weakness (Kaufman, 2009). This places him in a position to institute market strategies that would help him out do the competitors.

In addition, Phil promised to offer them full support while venturing on the franchise business. They will therefore incur little cost in terms of setting up and running the business. This is good since their input would only be professional rather than financial as a result they will encounter little challenges in running the business (Shook & Shook, 2009).

Phil has a good reputation of being an excellent businessperson hence forming partnership with him would open John and the wife new avenues and opportunities to venture. As a result, they would reach their points of actualization faster than when they work in other places.

Despite these advantages, there are other few disadvantages that may be accrued to accepting Phil’s proposal, some of these would include lack of total ownership of the business; the business and all the rights have been registered under Phil’s name hence giving him all the rights to dictate how the business is managed (Siegel, 2010). In cases of controversy in opinions, management of the business may not be easy since one is a professionals and the other is an employer.

Picking either of the above-mentioned options may be an advantage to John’s family, however, they need to pick an offer that is promising and will benefit the family equally. Joining the consultancy firm may be a good idea, but it has many disadvantages hence the entire John’s family may not adopt it willingly. At the same time, the job pay would do not appear consistent especially in the low job season since it is based on profits. The Phil’s option is a good one since it has a professional forward mobility (Kaufman, 2009, p.77). John and the family can join it and be sure to excel in their professional life. In addition, they are to begin at no expense since Phil would cater for all the expenses. This would not only give them an easy way but also a better continuity of their professional career given that their pasts have been full of franchising professionalism. Moreover, he would be placed in an area that he initially had many interests for, automotive. Therefore, in my opinion, the way forward for this couple is to choose the Phil’s option.

References

Kaufman, D. J. (2009). Understanding franchising: business & legal issues. New York: Practising Law Institute.

Sherman, A. J. (2011). Franchising & licensing two powerful ways to grow your business in any economy (3rd ed.). New York: AMACOM.

Shook, C., & Shook, R. L. (2009). Franchising: the business strategy that changed the world. Englewood Cliffs, N.J.: Prentice Hall.

Siegel, W. L. (2010). Franchising. New York: Wiley.