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Unformatted text preview: Running Header: CASE STUDY Case Study Michele Baker GM 560 Entrepreneurship and Small Business Management Professor Timothy Fields August 8, 2010 Franchising The benefit of franchising for Brian Scudamore is that he is not losing any control of his vision and his business while using other peoples money to grow his company. People pay him a franchising fee up from and his business expands. Then once the franchise is established and starts profiting, Scudamore would receive royalties from the new location. This means that ultimately the business continues to grow with minimal continued funding from Scudamore. The franchise fees and royalties are what he uses to continue expanding and to maintain the companys cash flow. An added benefit for Scudamore is how much easier and safer it is for people to buy a franchise instead of starting a business from scratch. This will prove to be beneficial in his growth model since people who want to get into small business ownership already know that it is...
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