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• W1436705132 abstract "ABSTRACTAs entrepreneurs decide to open or pursue a small business, one important option available to most entrepreneurs involves whether or not to purchase a or business. Many small businesses started during the last 30 years have involved either franchising or licensing. One major reason small business owners choose to become franchisees or licensees is these small business models allow individuals to function as if they were operating a much larger enterprise or corporation. Many entrepreneurs could be confused over what fees are required, what the various fees entail, and the difference between a and business. It seems a large number of fees and monthly expenses are based on the McDonald's Corporation fee structure. Important insights can be gained by analyzing the concepts employed by McDonald's with regard to fees and expenses as presented in an earlier paper, ASBBS Annual Conference Proceedings, February 2011 (Volume 18, Number 1). Franchise/license fees, security fees, base rent fees, percent rent fees, service fees, and royalty fees, not to mention the various purchase cost options, all come into play when analyzing a potential business such as McDonald's or Starbucks. Comparing Chick-fil-A and Starbucks licensees to McDonald's franchisees can help potential entrepreneurs identify possible issues. Based on the earlier research of McDonald's fee structures, comparisons of associated fees and expenses of franchised versus licensed companies can be analyzed in a more enlightened manner. Licensing of Chick-fil-A and Starbucks will be compared to a franchised McDonald's for base-line comparisons and analysis.INTRODUCTIONHaving limited funds available, combined with a lack of a complete understanding of franchising and licensing, can be a significant barrier to someone attempting to become a franchisee or licensee. Historically, required financial resources for the individual entrepreneur have been obtained from various sources, such as immediate family members, relatives, or banks. Franchising and models serve as a financial resource multiplier, effectively allowing the entrepreneur to operate a small business with many of the attributes more often associated with much larger corporate entities. A thriving large corporation is able to offer its franchisees and licensees an extremely large reservoir of resources. A franchisor such as McDonald's serves as an excellent base -line for comparisons of various other franchises and retail corporations with regard to fees and expenses.The retail service sector, especially the restaurant sector, has become one of the more recognized industries associated with the franchising and forms of business structures. Many such fast food franchising and ventures have proven extremely successful. The name in this industry sector that has risen to become the pinnacle of the fast food franchising sector is McDonald's and hence serves as an excellent base-line for franchise fees and expenses. In a previous paper (ASBBS Journal, Volume 9, Number 1, Summer 2013), comparisons were made of fees and expenses ofChick-fil-A to McDonald's attempting to look for significant deviations in franchising versus costs and expenses. This helps estimate future profits that may be realized in these types of businesses. In this paper an analysis will made comparing the Starbucks license to further enhance comparisons.The current analysis will use descriptive statistics to summarize and present data comparing the franchise of McDonald's to the used by Chick -fil-A and Starbucks. We will use a systematic comparison of fees, purchase prices, and projected annual revenues between the McDonald's and the licensing model of Chick-fil-A and Starbucks. This methodology will present opportunities for potential owner/operators in these types of businesses to make solid decisions on what works best for their future financial success based on the data collected. …" @default.
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• W1436705132 date "2015-07-01" @default.
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• W1436705132 title "Entrepreneur Options: Franchising vs. Licensing (Mcdonald's vs. Starbucks and Chick-Fil-A)" @default.
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