Burger King was founded in 1954 by James Mclamore and David Edgerton in Miami. At the end of its 2011 fiscal year, Burger King is the second largest chain of hamburger fast food restaurants in terms of global locations. The slogan was 'Have It Your Way'. Burger King reported it had more than 12,400 outlets in 73 countries; of these, 66 percent are in the United States and 90 percent are privately owned and operated.
Franchising Agreement: The agreement which demonstrated us the debt relationship between Franchisor and Franchisee. Generally,It covers agreement period and private requirements. These requirements are field of activities,daily operations, in service training, technique equipment and commitment and advertisement payment.
As you see in Table2, There are responsibilities that should be required. The agreements usually are valid for 5 or 10 years.
-The franchisor shall permit the franchise to use his/her trading name, image, systems, procedures, operating manual and so on for the duration of the franchise.
-The franchisor could be responsible for choosing a suitable commercial property for the franchise as well as a territory,handling negotiations,plannig permission and so on.
-The franchisor must provide full training for the franchisee,thus enabling him or her to start and proper run the venture.
Source of Finance
We wanted to take franchising as 5 partners.Each partner fund 100.000 USD and take loan from bank.
FORM OF OWNERSHIP
This is the most common corporate structure. The corporation is a separate legal entity that is owned by stockholders. A general corporation may have an unlimited number of stockholders that, due to the separate legal nature of the corporation, are protected from the creditors of the business. A stockholder's personal liability is usually limited to the amount of investment in the corporation and no more. Advantages...
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