Franchise Case Study

1) Setting up and running a business and franchise have their similarities but are very different. when starting up a business you start it with the hope of success but nothing can really guarantee whether the business will be successful or not. there is also a huge risk when starting up a business financially, depending if its started under a limited or unlimited liability. if the business were to fail this could have a large impact on the owner. although this is the case in businesses it is a whole different case with franchising. when franchising the buyer of the franchise known as the franchisee is buying a franchise from the seller known as the franchisor. in most cases franchisees purchase a franchise whose franchisor is already running a successful business. therefore there is a guarantee on the business being successful. By selling off a franchise the franchisor will gain from a larger economy of scale but it also means it would be difficult for the frachisor to control the activities of all its franchisees. Running a franchise is similar to running a business but there is a huge risk for the franchisor in selling off its company name and logo to a franchisee because if franchisees do not follow the franchisors protocols or do not meet expectations it could result in harming the reputation of the franchise.

2) Whether a team has the best players or the average players doesn't determine the success of the team. Using the Forbes website and the Business of Baseball website, the Washington Nationals, which were known as the Expos, are most likely to be sold to a rival bidder. The teams overall statistics are not very impressive. By looking at Forbes we can also see that the Washington Nationals also generate the lowest revenue in the league. Another team which is not doing very well in the league are the Tampa Bay Devil Rays, but if we were to compare the two teams we can see that the Tampa Bay Devil Rays generate $110 million in revenue which is greater than what the Washington Nationals make, putting them in a worse position. the other statistics of the Washington Nationals are average but because of their revenue, they are most likely to be bought by a rival bidder. Revenue can be increased through selling team products such as t-shirts, mugs, hats etc. and charging other fees around their stadium. Due to the revenue they generate, the Washington Nationals are the most vulnerable team to be sold to a rival bidder such as Portland Oregon.



3)

a) the Premier League can use their position to expand their franchise in different countries. just as how there is an English Premier League they can expand the Premier League such as the Irish Premier League and the Indian Premier League for example. they both do not have English soccer teams but are still part of the Premier League franchise. By opening different premier leagues all over the world the Premier League franchise can expand their brand.



b) the football clubs in the original premier league which is the English premier league are known all over the world because of the expansion of the Premier League and different broadcasting stations in different countries. this basically will act as a reputation boost for the clubs in the Indian and Irish premier league. The clubs in the Indian and Irish premier league will also be known by the English premier league but the franchising of the premier league will act as an increase for the reputation of the English soccer clubs.