4. Franchises Aa Aa Frank is tired of his office job and wants to operate a busi

Question

4. Franchises Aa Aa Frank is tired of his office job and wants to operate a business of his own. When he tells his daughter that he would ike to open a sandwich shop, she suggests that he open a franchise of her favorite shop, SuperSubs. Frank tells his son as well, who thinks-instead-that he should open his own business, rather than be subjected to the vertical restraints specified by the Imagine you are listening in on the conversation between Frank's son and daughter as they argue their points. Evaluate each statement and indicate whether it reflects a likely true ("Good Point!") or likely false ("That's Not True") statement about opening a franchise. Good point! That's not true Son: You'll have to go through specific training first. Daughter: But you'll be able to use your brand-name recognition to support your favorite political causes! Son: You won't get to design your own menus. Don't you want to be able to sell Dad's tuna-ham-mango special?

Explanation / Answer

He should open his own business rather than be subjected to the vertical restraints specified by the Supersub.

You will have to go through specific training first is a good point, because if Frank follow his son's idea then he should go through some training related to business strategies and cooking also.

But you will be able to use your brand name recognition to support your favorite political causes is not true, because there is no relation between this two ideas.

Now if Frank chooses to start a business in the name of supersub then he will have to maintain the same menus of Supersubs. So the third point is also a good point.

Now as we know free rider problem occurs when some individual does not pay for there consumption.

So here in this case if Frank opens a franchise of SuperSubs then not making monthly royality payments will be an example of free riding because in this case Frank uses that franchise name without making any payment to the owner of the franchise.

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.