Scenario: You are the owner of a boutique marketing consultancy business – specialising in franchising. One of your clients has expressed his/her intent on becoming a franchise owner [franchisee] of an outlet in a proven franchise chain [note: for the purposes of this assignment you can select from Quest Apartment Hotels, Bedshed, Total Tools, Zambrero, Oporto, Anytime Fitness, Curves, Boost Juice Bars, Jamaica Blue Café… or any other franchise chain approved by the lecturer]. Students could even choose to bring an overseas franchise to Australia for the first time. You need to clarify whether your selected franchisor currently operates just in Australia or has an international/global perspective [either are fine]. Generally, a new outlet is viewed as riskier than an existing outlet [as less is known], however, your client has expressed an interest in a new franchise. A new outlet provides the opportunity for greater returns if good strategic decisions are made. Whilst your client cannot alter some of the product components of the franchisor they are able to select the location for this new outlet, make adjustments to the ‘total product’ to appeal more directly to the target market in this new location and come up with their own store opening marketing communications plan. Your client has provided you with some parts of the ‘franchisee pack’* including the ‘pro-forma’ financials and other key information for an average outlet in that franchise chain. Your client’s financial objective is to outperform the chain’s average outlet’s sales performance by 11% in year 1. Your client knows you are an expert in achieving the three financial objectives of marketing [increasing sales revenue, reducing costs as a percentage of sales and increasing the value of the business] and thus is seeking your advice in beginning their quest.
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