Rubbish Boys Case Write-Up
Discussion Question: Please discuss the following: Does franchising make sense as a way to expand this business? Why do you think Brian has had a difficult time finding potential franchisees for his business (professional franchisees, not the initial student model)? If you were a potential franchisee, would 1-800-GOT-JUNK be a good choice? Why or why not? Franchising offers many opportunities that could allow it to expand this particular business. Franchising allowed Brian to begin expanding the company without giving away equity or taking on debt. Brian learned early on when he had to buy out his first partner that he did not want to give away equity to grow the business. Brian was passionate about growing and controlling his business and he was the type of person who wanted control of his own business. He also was a very proud individual and didn’t want to take on mass debts to grow the business. In the case Brian talks about how his father always told him it was better to start small and grow on your own than take on lots of debt to grow a business. I think this business has a great chance to grow through franchising. Franchising makes sense due to many reasons. This is a service industry that has very low barriers to entry so franchisees will be easier acclimated to the business. Also the business itself is a very simple business. What I mean by this is that the company is not overly complicated nor does it take a lot of specialized knowledge to figure out how to run the operations of the company. When he opened the first franchise of the company the franchisee was able to learn the systems in Vancouver to duplicate elsewhere in 4 days. Due to the simplicity and low costs for the franchisees to start this business franchising seems like a smart decision. Franchising also frees up some of his time to do more important things for the company rather than worry about every little tiny thing going on in the company, he can hire...
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