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ERAU Establishment of a Franchise Operation Research Paper

ERAU Establishment of a Franchise Operation Research Paper

Question Description


Here are the instructions for this assignment:

The Business is Growing

Five years after your initial opening of the restaurant you now havefour locations up and running. Both you and Sally are glad to havepurchased a new property to start the restaurant since you were able tomove into a new building and equip it with a modern kitchen and diningroom equipment that could accommodate the original requirements underthe business plan. The new site has become the number one destinationfor vacationers coming to Florida, as well as, a repeat of the localpopulation. A signature dish at the restaurant (served as the GrandFinale to the glorious main courses responsible for winning the two GoldStars) is a specially formulated dessert. The dish is so popular manycustomers have requested extras to take home. A substantial number of patrons have asked if the dessert would ever be sold separately in markets.

As a part of your long-range marketing plan, you invested in thepurchase of the national property locations of the now bankrupt “SaharaDesert Dish” franchise properties. You approach Sally and tell her thatyou think it’s time to go nationwide with our patented dessert brand“Brain Freeze.” You point out that the company has amassed a healthyportfolio of investments and cash on hand. The restaurant’s dessert menuhas a strong sales position in overall restaurant sales. You point outto Sally that her Food Channel show is flying high in the weekly ratingsas one of the most watched cooking shows. Sally interrupts you saying,“I don’t cook; I Create.” “Of course,” you reply. You then remind Sallythat part of our portfolio includes the Sahara Desert Dish propertypurchased in anticipation of this day. The properties are all in upscalelocations that support the thematic profile that you built the holdingson. You look her straight in the eye and say “It’s now or never…weneed to get that franchise Division going.” Sally looks a little takenaback and then questions if the operation will interfere with herobtaining the third Gold Star. You reply, “If Wolfgang Puck can open upgourmet pizza shops, that’s the only incentive we need to startup ourfranchise operations.” Sally fires back “You’re the one studyingbusiness law! Why did it take you so long to bring it up?” Sallycontinues, “Start working on the documents, and I’ll get started oncreating the menu’s and food handling processes.”

Your Assignment

Your task is to assemble the preliminary documents used to establish a national franchise operation. So far, you have a Draft Agreement (DOCX). You will need to check the Draft Agreement against the Franchise Disclosure Document (FDD) requirements found on the Electronic Code of Federal Regulations website. (Links to an external site.)

Next, complete the Franchise Agreement (DOCX)by filling in the blank or bracketed”[ ]” information and any otheressential term that might be missing, in order to send it out toprospective franchisees.

Lastly, Sally has provided you with a list of questions she has regarding the development of a “Franchise Disclosure Document (FDD)” that meets the FTC legal requirements. She expects you to submit answers on the FDD Franchise Questionaire (DOCX) by the end of the week for her review along with a draft Franchise Agreement.

Sally has provided the following documents to help you with the questions she would like answered:

I’m attaching the preceding documents.

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