MGM101H5 Lecture Notes - Lecture 5: Contract, Succession Planning, General Partnership
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MGM101H5 Full Course Notes
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Started the company on his own, worked for himself. He put a lot of time into. Just because a business has 1 or 10000 employees, doesn"t mean it"s one type. It"s more about understanding the needs of the business and the conditions the business is facing at the time, that will drive an manager to choose the appropriate business model. Franchising allowed him to maintain control of stores but still expand the business. If the franchise fails he doesn"t lose much. Though, his reputation is on the line if the franchise doesn"t do well. Allowed him to expand his business without incurring high costs. Buy franchising, he can open many stores, gets the money from franchisees purchasing rights, and gets royalties from sales. Franchisees have skin in the business , they"ve invested large amounts of money and have a lot at stake. A form of marketing and he builds a national brand. Being the first into a market is critical.