FRANCHISE

  obtain advertisements of franchises in local newspapers and other periodicals;

analyze the advantages and disadvantages of franchising

WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF OWNING A FRANCHISE? 

ADVANTAGES 

“Owning a franchise allows you to go into business for yourself, but not by yourself.”

Franchises offer important pre-opening support: 

Franchises offer ongoing support:

  DISADVANTAGES  

Franchises offer important pre-opening support: 

site selection design and construction financing training grand-opening program 

 

Franchises offer ongoing support:training national and regional advertising operating procedures and operational assistance ongoing supervision and management support increased spending power and access to bulk purchasing

Business Established:

1941Offering Financial AssistanceWhile CKE Restaurants does not provide financing, we have relationships with a number of financial providers. Our minimum financial requirements are $1 million net worth and $300,000 in liquid capital to invest per store developed.

Franchising Since:

1984

Franchised Units: 992

Company Owned Units:

434Special IncentivesVetFran Participant

VetFran IncentiveWe offer a 50% discount on the initial franchise fee.

Start-up Cost: $300,000

Total Investment:$1,315,000 to $1,859,200

Veteran Hired Since 2011

N/A

Veteran Owned Units

N/A

Visit Carl's Jr. Restaurants

Carl's Jr. Restaurants Franchise Information< Request More Info

                                                                                                

DISADVANTAGES 

The franchisee is not completely independent. Franchisees are required to operate their businesses according to the procedures and restrictions set forth by the franchisor in the franchisee agreement.

These restrictions usually include the products or services which can be offered, pricing and geographic territory. For some people, this is the most serious disadvantage to becoming a franchisee.

In addition to the initial franchise fee, franchisees must pay ongoing royalties and advertising fees.

Hamburger UniversityMcDonald's Center of Training Excellence

Since 1961, class attendance has grown from an average of 10 students to more than 200 students each week, and more than 5,000 students a year participate in Hamburger University courses and learning activities. 

Hamburger University’s professional training and operation staff design, deliver and implement the core curriculum throughout the system using a variety of learning techniques, including elements of self-study, e-learning and classroom training. Students are trained from the time they step into the restaurant…preparing themselves for continuous learning at our Regional Training Centers and Hamburger University.

Our Students

DISADVANTAGES Franchisees must be careful to balance

restrictions and support provided by the franchisor with their own ability to manage their business.

A damaged, system-wide image can result if other franchisees are performing poorly or the franchisor runs into an unforeseen problem.

The term (duration) of a franchise agreement is usually limited and the franchisee may have little or no say about the terms of a termination.

Hamburger University February 24, 1961, Hamburger University's first class of 15

students graduated 

Today, more than 5,000 students attend Hamburger University each year 

Since 1961, more than 80,000 restaurant managers, mid-managers and owner/operators have graduated from this facility

At McDonald’s, our training mission is to be the best talent developer of people with the most committed individuals to Quality, Service, Cleanliness and Value (QSC&V) in the world. Our strong commitment to the training and development of our People has resulted in many “firsts” and honors, including being…

 the Federal Trade Commission requirements of a Uniform Franchise Offering Circular

The Uniform Franchise Offering Circular, or UFOC, is a document that contains information franchisors must provide to franchisees by law. Its contents are regulated by the Federal Trade Commission. UFOCs are deemed to be reliable and if the information provided is false, franchisors are subject to civil penalties. However, the FTC does not require filings. There are 13 states that do keep UFOCs on file, and 23 states that require business opportunity disclosure filings.

The UFOC is designed to give prospective franchisees all the information relevant to a franchise offering. It is made up of three basic parts: 23 sections (called Items) describing various aspects of the franchise program; a set of the franchisor's audited financial statements; and a copy of each form or contract a franchisee is expected to sign if he/she intends to buy the franchise.

The standard Items in a UFOC are as follows:

Item 1: The Franchisor, It's Predecessors And Affiliates Item 2: Business Experience Item 3: Litigation Item 4: Bankruptcy Item 5: Initial Franchise Fee Item 6: Other Fees Item 7: Initial Investment Item 8: Restrictions On Sources Of Products And Services Item 9: Franchisee's Obligations Item 10: Financing Item 11: Franchisor's Obligations Item 12: Territory Item 13: Trademarks Item 14: Patents, Copyrights and Proprietary Information Item 15: Obligation To Participate In The Actual Operation Of The Franchise Business Item 16: Restrictions On What The Franchisee May Sell Item 17: Renewal, Termination, Transfer And Dispute Resolution Item 18: Public Figures Item 19: Earnings Claims Item 20: List Of Outlets Item 21: Financial Statements Item 22: Contracts

investigate state requirements for disclosure statements prior to purchasing a franchise

The FDD underlies the franchise agreement (the formal sales contract) between the parties at the time the contract is formally signed. This franchise sales contract governs the long-term relationship – the terms of which generally range from five to twenty years. The contracts cannot generally be changed unless there is agreement of both parties.

explore the issues involved with taking over an existing family business or expanding an existing family business to

create additional entrepreneurial opportunities.

The management and operation of a family business raises legal and strategic challenges that traditional businesses rarely face, primarily because love and business often don't mix

The challengeis to select the child, children, or

other relatives who will ensure the continuation of the business as a family enterprise, provide participating roles for the remainder of the family, and accomplish all of this while maintaining family harmony

The key objectivesThe Plan are to provide smooth

and seamless transition of the ownership and control of the business, provide liquidity for the retiring generation, minimize estate taxes, preserve capital in the company for future growth, and, wherever possible, maintain family harmony.