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Thought It Was Safer Than Starting His Own Business

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Submitted By plinchecha
Words 1616
Pages 7
Abstract
Fred is a former senior executive of an automotive parts industry company. He worked for the company for almost thirty years and was ready to go back to Indianapolis, his hometown, and semis retire while running his own business. He came to this conclusion due to the fast paced job as well as the travelling the job entitled. Three years earlier, Fred took the buyout funds from the company he worked in and invested them, with his wife, in a car repair franchise in a suburb in Indianapolis. He has been expanding since and seven years later he holds five franchised locations around Indianapolis. Revenues from the first two car repair shops financed his last two businesses. He currently has twenty-seven full time employees, yet feels the stress from running the shops for ten-hour work days and evenings full of paperwork. It seems Fred is working more now that he is semiretired than before as a senior executive. Fred is not going thru this by himself since this situation happens often with franchisees and the misconception of being their own boss and their own company. They believe that others will take care of all the headaches and exposure of the business, yet the franchisor is the one making the money in royalties and advertisement while dictating how the business must look and even be ran. If Fred does not comply then the franchisor can take the franchise away at any moment and Fred would be left with nothing.

Assess Fred’s capability and capacity to be a franchisee in general and for this specific company. Seems to me that Fred definitely has the capability and capacity to be running a franchise of car shops. This is due to his thirty-year experience in the automobile industry. He has the knowledge and understands what it takes to run a car shop, even though his knowledge of a franchise might not be as extensive. Fred can certainly put his

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