Here is the synopsis of our sample research paper on DISCUSSION ABOUT FRANCHISE COSTS. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 4-page paper discusses costs of franchising by examining various financial statements of parent companies. Topics included are costs of franchising, how franchising impacts financial statements, and how franchising is a better investment than a wholly owned subsidiary. Bibliography lists 3 sources.
Page Count:
4 pages (~225 words per page)
File: D0_MTdisfra.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
provide assistance to the franchisee in the area of product support, advertising, and general guidance. In addition, some franchisers have been known to provide loans to promising franchisees for
expansion of franchises. Otherwise, the bulk of the cost of operations and investment is the responsibility of the franchisee. The franchisee is responsible for costs associated with franchise operations including
payroll, facility maintenance, local promotion and product/packaging. It is clear from examination of financial statements that companies with franchises tend to spend
a lot less money on franchise operations than they do on company-owned stores. Taking for example, the statement for McDonalds Corp., we notice that franchise sales for the year
2002 was at $25.7 million, while expenses were at $17.8 million (McDonalds Corp., 2002). On the other hand, the Company operated sales chimed in at $11.5 million while expenses for
company-owned restaurants were $9 million (McDonalds Corp., 2002). In analyzing this, we see that McDonalds earns more of a percentage of profit of off its franchisees than it does from
its company-owned stores. This is because franchisees assume the costs, rather than the parent company. And in examining the 7-Eleven balance sheet,
we also know that its listed expenses for its franchises are fairly small (7-Eleven, 2002). Unfortunately, there is no indication of franchise profits on this particular balance sheet -- rather
all profits are listed as one; but comparing the franchise costs against the revenue -- these costs only take out a small percentage of that revenue (7-Eleven, 2002). Examine how
franchising affects the financial statements of franchisee and franchiser As indicated above, franchising profits on most company balance sheets tend to boost
...