A franchise is a business agreement between a franchisor and a franchisee. The franchisor sells or rents the rights of the particular business to a qualified franchisee to expand business using a small capital. The franchisee must oblige and follow all rules and regulations that they purchase, that includes maintaining a strong business relationship, using the products, sale techniques and other managerial assistance that is provided by the franchisor. One must have a working capital reserved in addition to start up costs, that can go anywhere from $20,000.00 and up. But once a person has determined their net worth and credit history, obtaining a loan may be feasible. A franchisor may require the franchisee to pay many fees, royalties and operating expenses that have to cover rent, payroll and utilities.
Ben & Jerry’s has been in business for 30 years and they have over 750 franchised ice cream shops around the world. In 2008 they were ranked #75 as “America’s Top Global Franchises” by Entrepreneur Magazine. I picked this company because of the leadership and determination of the two men that started the company. In 1978 with a $5 correspondence diploma and there $8000 life savings, they were able to open up their first ice cream shop in a old abandoned gas station. Now 30 years later here they are a fortune 500 company. Their three part mission also says a lot for the company: their “Product Mission” is to sell the finest, most natural wholesome ice cream in an eco friendly environment, their “Economic Mission” shows interest in the growth of their business, stakeholders and employees and lastly their “Social Mission”, is to be actively involved with their society.
To own a franchise of Ben & Jerry’s, one must fulfill the three step process that they call “The Discovery Process.” The first step of the process consists of filing an application, after which it is than reviewed and followed up by a phone call. The second step is the interview process, the...
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