Description:

In this course, the student should be able to research the franchising method of doing business from the perspective of both the franchisor and the franchisee. The student will analyze independent management efforts necessary for a successful franchise business venture as well as understand the interdependent contractual obligations that are legally binding between the franchisor-franchisee. 3 hrs. lecture/wk.

Supplies: Refer to the instructor's course syllabus for details about any supplies that may be required.

Textbook(s): For information see - http://bookstore.jccc.net

Course Fees: NONE

Course Objectives:

Upon successful completion of this course the student should be able to:

1. Explain the nature of the franchising method of doing business.
2. Identify the unique features not typically found in a business run by an independent owner/operator.
3. Analyze the pros and cons of becoming involved in franchising.
4. Understand the necessary steps to successfully enter a franchise agreement.
5. Explain the location, site selection, accounting, financial management, and information systems important to the successful operation of a franchise.
6. Review the law as it relates to franchising, addressing contractual requirements, torts, franchisor/franchisee rights, trademarks, registration requirements, antitrust, territorial rights, price fixing, and tying agreements.
7. Identify and analyze qualifications a franchisor seeks in a prospective franchisee.
8. Explore the multifaceted relationships between franchisees and franchisors, examining these relationships from a business and a legal perspective.
9. Evaluate methods of developing and handling franchise relationship programs.
10. Research the current growth in franchising throughout the world.
11. Review current trends and issues in franchising.

Content Outline & Competencies:

I. History of Franchising
   A. Describe the historical development of franchising
   B. Define franchising

II. Recognizing Franchising Opportunities
   A. Identify advantages and disadvantages of franchising to the
franchisor and the franchisee
   B. Describe typical elements included in a franchising agreement

III. Developing a Franchisor Business Plan
   A. Define a franchise business plan
   B. Identify the elements of a franchisee recruitment package
   C. Analyze the essential elements of a franchisee operations package

IV. Franchisor Management, Organization and Administrative Policies
   A. Describe franchisor management practices and their importance to the
franchisor and franchisee
   B. Investigate leadership principles important to franchising
   C. Analyze the functions of franchisor management in a franchise
system

V. Marketing and Selling the Franchise Opportunity
   A. Identify the uniqueness of selling in a franchise organization
   B. Analyze franchise sales packages

VI. Managing the Operations Process of a Franchise
   A. Learn why a franchisor has a promotional and an operations process
   B. Describe the components of a promotional package
   C. Describe the development of the operations process
   D. Understand the purpose of the franchisor’s brochure and what
information is included in the brochure
   E. Discuss the importance of informational manuals for franchisee
trainees and for prospective franchisees

VII. Evaluating Location and Site Selection
   A. Describe the importance of site selection to the success or failure
of the business
   B. Discuss the franchisor’s approach to allocating franchises within
a geographic area and for selecting specific sites within those areas
   C. Recognize the importance of market share in site selection

VIII. Financial Management and Planning Tools
   A. Develop an understanding of the financial responsibilities within a
franchised business
   B. Identify the capital requirements confronting franchised businesses
   C. Describe financial ratios useful in analyzing the financial
condition of a franchise operation

IX. Information Systems in Franchising
   A. Describe typical information systems used by various franchises
   B. Address the importance of information systems to various franchise
businesses

X. Franchise Legal Documents
   A. Describe trademarks, copyrights and patents and how to protect them
   B. Discuss intellectual property and its importance to business
   C. Analyze the basics of antitrust laws and the role they play in
franchising

XI. Investigating Franchise Opportunities as a Franchisee
   A. Describe the process of investigating and comparing franchise
operations
   B. Evaluate yourself as a prospective franchisee
   C. Describe the contents and importance of the disclosure document

XII. Financing, Marketing and Managing  a Franchised Business
   A. List the financing requirements of a franchisee
   B. Describe the marketing responsibilities of a franchisee
   C. Identify the essentials of the management process in a franchised
business

XIII. The Franchise Relationship between Franchisor and Franchisee
   A. Analyze the importance of communication, awareness, rapport, and
expertise in a franchising relationship
   B. Describe the principal areas of concern to franchisees in the
franchising program

XIV. Franchisor Support Services
   A. Identify services typically provided by a franchisor to a
franchisee
   B. Describe the importance of an effective communication system to the
franchisor-franchisee relationship
   C. Determine the value of franchisee training and what it generally
entails
   D. Identify the contents of a training manual/program necessary for the
development of the franchisee

XV. The Future of Franchising
   A. Research the current growth in franchising throughout the world
   B. Review current trends and issues in franchising

Methods of Evaluation of Competencies:

Evaluation of student mastery of course competencies will be accomplished using the following methods:

Exams                                 30-35%   
Small Group In-Class Case Evaluations 15-20%
Case Studies                          20-25%
Franchise Reviews                     25-30%
  Total:                                100%  

Grading Criteria:
  A = 90 – 100%
  B = 80 –  89%
  C = 70 –  79%
  D = 60 –  69%
  F = 59% or below

Caveats:

1. Computer Literacy Expectations: Students will need basic word processing and internet searching skills for the completion of some papers, exercises and projects.

Disabilities:

If you are a student with a disability, and if you will be requesting accommodations, it is your responsibility to contact Access Services. Access Services will recommend any appropriate accommodations to your professor and his/her director. The professor and director will identify for you which accommodations will be arranged.

JCCC provides a range of services to allow persons with disabilities to participate in educational programs and activities. If you desire support services, contact the office of Access Services for Students With Disabilities (913) 469-8500, ext. 3521 or TDD (913) 469-3885. The Access Services office is located in the Success Center on the second floor of the Student Center.