Thougt it Was Safer Than Starting His Own Business Case Study

Thougt it Was Safer Than Starting His Own Business - Case Study ExampleSecondly, since he rose through the ranks, having retired as a elder execute from the previous firm makes Fred highly skilled in basis of possessing the knowledge, abilities and skills needed to operate a franchise within the same industry.However, there is inconsistency in the specific service offered by the previous organization he was employed with (automotive parts) and that of his franchise (car repair). Therefore, in terms of having direct and previous experience on operating a car repair business, Fred seemed to start as a neophyte in this kind of business endeavor.2. Evaluate Freds misconceptions about being a franchisee. Speculate how common these misconceptions may be for all new(a) franchisees.As indicated in the case facts, Fred perceived that there were app argonnt misconceptions in terms of being his own boss and running his own company (The Franchise Handbook, 2000, par. 5). According to Gappa ( 2012), there are many misconceptions about franchising, but probably the near widely held is that you as a franchisee are buying a franchise. In reality you are toging your assets in a system to utilize the mark name, operating system and ongoing support. You and everyone in the system are licensed to use the brand name and operating system (Gappa, 2012, par. 5). ... reds self-reliance that one of the misconceptions of franchising is thinking that when one enters into a franchising agreement, the franchisee would be his own boss and would run his own company. As a franchise, all the terms of the franchisor would be followed and adhered to. Likewise, it was exclamatory that as a franchisee you own the assets of your company, which you have chosen to invest in someone elses brand and operating system and ongoing support. You own the assets of your company, but you are licensed to operate someone elses business system (Gappa, 2012, par. 11). It could be and so common for new fran chisees to assume that by entering into a franchise agreement, the new venture would give one the opportunity to own a business and be ones own boss since one would invest goodish amount of funds that could be parallel with investing on establishing a practically new business venture. The only difference in franchising is that one opted to invest in a previously established business with previously established historical performance to gauge customers response to the product (or service) and therefore provide a plus factor in terms of image, core competence and competitive advantage. 3. Suggest what Fred could have done differently to be intermit informed and advise Fred on action he can or should take now knowing his situation. For new entrepreneurs and business practitioners who are thinking of outset a new business venture or opting to enter into a franchising agreement, to be better informed, there must have been a more cosmopolitan and extensive research undertaken on the a lternative courses of action to establish a new business venture or to enter into a franchising agreement. There are advantages and disadvantages to both