Real 240 Essay

Submitted By masix2k
Words: 538
Pages: 3

Massah Chatton W2014405
Bus 130
Franchisers Sweeten Pot to Woo Buyers 1. Which of the sweeteners mentioned in the article do you think is the most generous?
Seattle-based Emerald City Smoothie launched a "Buy One, Get One Free" initiative. I like this one because I am greedy. I want as much as I can get for as little as I have to pay. Is that not the American way? I do not like the Gold’s Gym but I do like the smoothie operation and in the perfect location you can’t go wrong. 2. If you were and existing franchisee of a smoothie restaurant who paid a $25,000 franchise fee and obtained a 6% loan through your franchisor, would you be upset if you found out that the new franchises were being sold for $15,000 and 4% financing was being made available?
I would not be mad because its just like real estate, up and down, cost of living goes up and down and just because you got hit when economy was soaring and no questions asked, now that economy sucks everything is questioned and by all means one should, it’s a bad time right about now, but my motto is “ there’s always room for jello”…. 3. What types of franchises do you think are being hurt the most by the economic downturn?
Travel industry due to economic spending, fewer people are taking vacations, gas, food etc etc. In the food industry, a Franchise Corporation like Mc Donalds or Burger King are doing better than more expensive restaurants that are pricey due to the lack of being able to splurge. Ma and Pop restaurants take up the slack but not too much. More than average a sole proprietor owner of a restaurant struggles more than all other types and have more to lose due to being just them. 4. Why do you think the franchise model of business growth is so prevalent in the United States?
A Franchise Corporation once started has a lot of perks. It’s already made a name for itself and if it’s a…