WSJ2 - Tough Times for Franchising 1. Franchising is the...

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Tough Times for Franchising 1. Franchising is the practice of using another firm’s successful business model. Building a franchise can be an alternative to building a chain store because it can help avoid the investments and possible liabilities that tend to come with chain stores. A plus to franchising is that it can show brand recognition and offer specialty training programs. Chain stores are similar to franchises when it comes to offering brand recognition but chains also have standardized business methods and practices with a central management system, whereas franchises are usually given business strategies that they might follow. 2. Before an entrepreneur should answer the question, “Is franchising a good choice for me?” he should first answer a few other questions before. The first question to ask yourself would be, “Do I have the money to hand over?” It takes a lot of money to franchise your business. It is typical to take a loan out from the bank to fund your franchise, and pay it back when you earn the revenue. Another question to ask yourself
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This note was uploaded on 03/07/2012 for the course MGMT 301 taught by Professor Jean during the Spring '08 term at Boise State.

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WSJ2 - Tough Times for Franchising 1. Franchising is the...

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