Griffin | Entrepreneurship
 
Resume Table of Contents  

Entrepreneurship

Entrepreneurship Intro
Franchising

 
State Standards
 
  • E 9.1 Content Standard: Students investigate the nature of small business and entrepreneurship.
  • E 9.1.1 Define entrepreneurship
  • E 9.1.2 Explain why individuals become entrepreneurs
  • E 9.1.3 Explore behavioral characteristics and traits of an entrepreneur
  • E 9.1.4 Examine motives for starting your own business
  • E 9.1.5 Assess the advantages of owning a business versus working for someone
  • E 9.1.6 Categorize types of businesses
  • E 9.1.7 Assess and evaluate the various ways to start your own business

  • E 9.2 Content Standard: Students understand the functions involved generating business/product ideas to contribute to business success
  • E 9.2.1 Identify business/product opportunities (PM:134) (SP)
  • E 9.2.2 Identify methods/techniques to generate a product idea (PM:127) (SP)
  • E 9.2.3 Generate business/product ideas (PM:128) (MN)
  • E 9.2.4 Determine initial feasibility of business/product idea (PM:129) (MN)
Chapter Objectives
 
  • Understand franchising terminology.
  • Evaluate franchise ownership.
  • Recognize the advantages and disadvantages of starting a new business.
Why learn about Franchising?
 
  • There are many choices when starting a business -- you can start a business from scratch or you can buy an existing business. Among the existing business choices, you can decide to team up with a franchisor that has a proven business model.

1. Franchising
 

Franchising Power Point

  • A franchise is a legal agreement that gives an individual the right to market a company’s products or services in a particular area.
  • A franchisee is the person who purchases a franchise agreement.
  • A franchisor is the person or company that offers a franchise for purchase.
2.

Franchise Video Intro

3.

Evaluating a Frachise

  1. Demand for product or service
  2. Exclusive territory
  3. Costs (franchise fee + start up costs)
  4. Profitability (ROA / ROI) / Review financials
    1. Sales 
    2. Profit
    3. Expenses 
    4. ROA/ROI/Profit Margin ***
  5. Longevity
  6. Services provided by franchisor (location / design)
  7. Read Franchise Blogs
  8. Failure Rates / Defaults (article, Google SBA Failure Rate)
    1. Failure Rates: 2010, 2014
  9. FDD (Franchise Disclosure Documents)/UFOC (Uniform Franchise Offering Circulars ) ufocs.com
  10. How difficult to run? Is it a complicated business?
  11. How easy is it to copy the business idea?
  12. How profitable is it?
  13. What are the SNO’s?

4.

Franchise Detail

  • Operating costs of a franchise
  • Advantages of owning a franchise
  • Disadvantages of owning a franchise (Steak and Shake Article)
  • ROA - Return on Assets
  • ROI - Return on Investment
  • PM - Profit Margin
  • Franchise Research
5.

Your Turn: ROA

  • Subway
    • $200,000 cost
    • $50,000 profit
  • Dunkin Donuts
    • $800,000 cost
    • $150,000 profit

  • Best Choice: _____________________

  • Your Turn (entrepreneur.com)
    • Business: ____________________
    • Use total investment average
 
6.

Your Turn: ROI

  • Subway (3 yr lease)
    • $200,000 cost
    • $40,000 Tenant Improvement $$$
    • $60,000 profit

  • Dunkin Donuts (10 yr lease)
    • $800,000 cost
    • $300,000 Tenant Improvement $$$
    • $150,000 profit

  • Best Choice: _________________
 
7.

Your Turn: Profit Margin

  • Recess (IBJ)
    • $850,000 sales
    • $20,000 profit
    • PM = _____________
 
8. Your Turn: Profit Margin (Gross) Analysis / Return on Asset
  • Create an Excel Spreadsheet filling in the data from www.ibj.com/inside-dish

    • INSIDE DISH Bonge's Tavern survives, thrives in the boonies
    • INSIDE DISH Cajun couple plays to strengths (Zydeco)
    • INSIDE DISH Fairgrounds caterer (Barto's) revels in year-round gig
    • INSIDE DISH Goose the Market laying golden eggs
    • INSIDE DISH H2O owners return with new strategy
    • INSIDE DISH Hollyhock Hill sticks with recipe for nostalgia
    • INSIDE DISH (Matteo's) Italian eatery thrives despite early blunders
    • INSIDE DISH Restaurateur rebounds with Pizzology
    • INSIDE DISH Reviving an iconic east-side diner (Steer-In)
    • INSIDE DISH Squealers goes whole hog on franchising
    • INSIDE DISH Recess owner keeps it simple, plans expansion
    • INSIDE DISH Irvington (Jockamo) favorite breaks off slice for Greenwood
    • INSIDE DISH (La Mie Emilie) Entrepreneur eschews MBA, opens French cafe
    • INSIDE DISH Kelties eyes return to salad days
    • INSIDE DISH (Hal's) Vegas-themed eatery eyes breaking even
    • INSIDE DISH Peterson's rebounds after rough start, recession
    • INSIDE DISH Tulip Noir owner learns as she goes
    • INSIDE DISH Iozzo's endures heat of first year

  • Blank Spreadsheet
9.

Articles

 
   On Quiz...
  • CNBC Video, The Untold Story of Franchising
  • Franchise, franchisee,  franchisor
  • Operating costs, advantages/disadvantages of franchising
  • Evaluating a Franchise (SA)
  • Return on Assets, Return on Investment, Profit Margin, Tenant Improvement
  • Financial Equations (SA)
    • Return on Assets
    • Return on Investment
    • Profit Margin
    • Tenant Improvement
  • Articles
    • Valuing a Business
    • Defaults by Franchising Soar
    • Inside Dish Response
    • Failure Rates
  • IBJ Spreadsheet
10. Optional – Complete the Online Study Guide  
11.

Franchising Quiz

 

Additional Resources

A.



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