Asked by DARIN FILMS on Jun 27, 2024
Verified
The manager of Fatty Foods is thinking about retiring.He has two options: to leave his stores as a company stores,to be managed by a salaried manager,or to sell some of them as franchises.He however has no way of monitoring the salaried managers' activities.What would be his best bet?
A) Let the stores stay company stores
B) Sell them off as franchises
C) Shut down the business completely
D) Never retire
Franchises
Licensing arrangements whereby an individual or company can use a firm's business model and brand for a prescribed period.
Salaried Manager
A manager who is compensated with a fixed salary rather than an hourly wage.
Monitoring
The process of overseeing activities or performance, often used in contexts like employee performance, quality control, or compliance with regulations.
- Understand the basic principles of franchising and its benefits versus company-owned stores.
Verified Answer
TH
Tania HernandezJul 03, 2024
Final Answer :
B
Explanation :
Selling the stores as franchises would allow the manager to have more control over the business as he can set specific standards and guidelines for the franchisees to follow. This would ensure that his brand image and reputation are maintained. Additionally, franchising would also generate a steady stream of income for the retiring manager.
Learning Objectives
- Understand the basic principles of franchising and its benefits versus company-owned stores.