Franchising Gary J.

Castrogiovanni
Email: castrogi@fau.edu
Phone: (561) 297-2523
Office: FL 209

MAN 6931-002 Fall 2008 3 Credits

Course Description Other Materials

The franchising method of doing business is increasing “Quick ‘N’ EZ.” Case available on Blackboard.
rapidly worldwide. Many product and service
businesses are managed through franchising networks. Castrogiovanni, G. (1998). Universal business
Consequently, there is an increasing need among brokers. Entrepreneurship Theory & Practice, 22
franchise firms for executives with franchising (2), 75-86.
knowledge, and there are increasing opportunities for
people to attain business ownership as franchisees. Ciavarella, M., & Amason, A. (2001). Nawkaw, Inc.:
Changing the color of masonry. Entrepreneurship:
This course deals with the important aspects of starting, Theory & Practice, 26 (2): 77-91.
developing, and managing both franchise networks and
franchises within those networks. Specific attention is Finkle, T. (1998). Beano’s Ice Cream Shop.
given to the franchisor-franchisee relationship, and how Entrepreneurship Theory & Practice, 23 (1): 87-99.
both sides contribute to their mutual success. Profit
opportunities, legal considerations, and international
aspects of franchising are addressed as well. Office Hours
Tuesday and Wednesday, 5:00 to 7:00 p.m., 10:00 to
Course Goals and Primary Learning 11:00 p.m., and by appointment.
Outcomes
Global Goal. The overarching goal for this course is to
Grading
develop skills needed for you to succeed as a
franchisee, franchisor, or franchising executive. The points you earn for the various activities listed
below will determine your course grade.
Specific Outcomes. Primary learning outcomes are:
Activity Points
• Ability to identify opportunities to expand local Franchising Feasibility Study 100
businesses through franchising Franchisor Business Plan 100
Franchisee Business Plan 100
• Ability to work out details needed to establish Test 1 100
and develop a franchise network Test 2 100
Class Participation 100
• Ability to identify franchisee opportunities fitting Total Points Available 600
an individual’s particular needs and skills
Final course grades will be determined as follows:
• Ability to acquire a franchise and establish new
outlets in the franchise network • A = 555 or more
• A- = 540 – 554
• Ability, as a franchisee, to develop and maintain • B+ = 525 – 539
good working relationships with the franchisor • B = 495 – 524
and other franchisees in the network • B- = 480 – 494
• C+ = 465 – 479
• C = 435 – 464
Textbook • C- = 420 – 434
• D+ = 405 – 419
Judd, R., & Justis, R. (2008). Franchising: An • D = 375 – 404
Entrepreneur’s Guide, 4th ed. Mason, OH: • D- = 360 – 374
Thomson. • F = 359 or less

MBA Franchising Syllabus Page 1 of 5

Graded Activities
Franchising Feasibility Study. The Franchising
Feasibility Study is a team assignment addressing
whether a given business is suitable for franchising.
Students are encouraged to economize by assessing
feasibility here for the same prospective franchisor that
their team will focus on for the Franchisor Business
Plan assignment. In most cases, that prospective
franchisor will be a particular service, restaurant, or
retail business operating in South Florida. Alternatively,
however, and subject to the instructor’s permission,
teams may base the assignment on a business concept
that has not yet been operationalized. Additional
instructions will be provided.
Franchisor Business Plan. The Franchisor Business
Plan is a team assignment involving the determination
of how a particular business might expand beyond its
local market through franchising. Students are
encouraged to economize by developing this business
plan for the same prospective franchisor examined in
their team’s Franchise Feasibility Study. In most cases,
that prospective franchisor will be a particular service,
restaurant, or retail business operating in South Florida.
Alternatively, however, and subject to the instructor’s
permission, teams may base the assignment on a
business concept that has not yet been operationalized.
Class will not meet on the day the Franchisor Business
Plan is due. Thus, in lieu of in-class presentations, your
team will also submit two “Elevator Pitch” videos, one to
a prospective financier, and one to a prospective
franchisee. These should be submitted as short video
clips in a standard format (wmv, mov, avi, or mpg).
Additional instructions will be provided.
Note: If a team member shirks on his/her
responsibilities in a team assignment, the team may
assess a penalty by simply indicating on the title page
some percentage (less than 100%) of the team's
score that the particular individual should receive.
Franchisee Business Plan. The Franchisee Business
Plan is a team assignment involving the startup and
subsequent development of a new unit within a
franchise network. Normally, this franchised unit would
be within the same chain addressed in the Franchise
Feasibility Study and Franchisor Business Plan
assignments. In such cases, a student team would first
determine that franchised expansion is feasible for an
existing business, and then develop a Franchisor
MBA Franchising Syllabus
Business Plan to guide such expansion. Finally, for this
Franchisee Business Plan assignment, the student
team would assume the role of an early franchisee
within that new franchise network, and develop a plan
for starting and operating a new franchised unit.
Subject to the instructor’s permission, students may
pursue an alternative approach to this assignment. If
one or more team members has a particular interest in
an existing franchise chain, the team can develop a
Franchisee Business Plan for a new franchisee in that
chain. If, for example, a team member is interested in
buying a Subway franchise, the team could develop its
Franchisee Business Plan for a Subway franchise. The
team’s Franchising Feasibility Study and the Franchisor
Business Plan assignments would still focus on
prospective franchisors. Thus, in this example, those
other assignments would not pertain to Subway.
Additional instructions will be provided.
Tests 1 and 2. There will be two multiple-choice tests,
one covering the first half of the textbook, and the other
covering the second half. The purpose of the tests is to
assess student mastery of the topics covered. All test
questions will address material covered in the textbook,
but many questions will parallel ones provided in the
free “ICFE Study Guide Review Exercises for Franchise
Executives” offered by the International Franchise
Association (IFA). Thus, some students might find it
helpful to visit the IFA University website
(http://www.ifa-university.com/home/) and, after clicking
on “Free Course,” to take the course or work through
parts of the study guide corresponding to the chapter
topics to be covered on Test 1 or Test 2.
Class Participation. Much of your learning in this
course will occur as you form and express your views
during class discussions. You will have ample
opportunities to voice your opinions and take the lead in
shaping the direction of the discussion. There will also
be occasions where your views may be solicited.
To be prepared to participate in a given class meeting,
you should read the assigned material. Note that
participation is not the same as attendance though you
cannot participate if you are not present.
Disruptive classroom behavior will detract from your
participation grade. Such behavior includes but is not
limited to arriving late, leaving early, reading
newspapers or anything other than course material, and
socializing during presentations or lectures.
Page 2 of 5
 Course Policies
Students in this course are expected to conform to all university policies. Additionally, students should note the
following.

CLASS ETIQUETTE

Several class rules will be in effect:

1. Late arrival and early departure are rude and disruptive. Though this is sometimes
unavoidable, your grade will suffer if such behavior occurs repeatedly.

2. No cell phones or pagers are to be on during class. Turn them off or leave them
elsewhere. Answering or talking on a cell phone in class will result in your immediate
withdrawal from the course.

3. Refrain from talking during presentations and discussions. It annoys the presenters
and is not acceptable.

4. Guest presenters should be treated with great courtesy. It is expected that all students
will be prepared to ask the presenter questions and comments during the class period.

ACADEMIC INTEGRITY

A fundamental principle of academic, business and community life is honesty. Violation of this
ethical concept will result in penalties ranging from a grade of "F" in the course to dismissal
from the University. In all penalties, a letter of fact will be included in the student's file. The
use of unauthorized material, communication with another student during an examination,
attempting to benefit from the work of other students, or attempting to aid another student, and
other similar behaviors which defeat the purpose of examinations and individual assignments is
unacceptable. Violation of these standards is a serious offense and shall result in disciplinary
actions allowed by the College and the University. (See current University Catalog).

Turnitin may be used to examine any/all papers submitted in this class.

MBA Franchising Syllabus Page 3 of 5

 Tentative Course Schedule

Week Topic Assignments

Aug 27 Introduction/Orientation Syllabus; Form Teams

Franchising: History and Overview Ch. 1

Sep 3 Recognizing Franchising Opportunities Ch. 2

Assessing Franchise Feasibility Franchising Feasibility Study Instructions
The Franchisor Business Plan Ch. 3; Franchisor Business Plan Instructions

10 Franchisor Management Ch. 4

Case Discussion Nawkaw Case

17 The Franchising Market Process Ch. 5

Selling and Marketing Research Ch. 6

24 Franchise Feasibility Presentations Franchising Feasibility Study due

Co-Branding Ch. 7
Case Discussion Quick ‘N’ EZ Case

Oct 1 Franchisor’s Operations Process Ch. 8

Location and Site Selection Ch. 9

8 Accounting and Financial Statements Ch. 10

Financial Management and Fiscal Planning Ch. 11

15 Test 1 Chapters 1-11

22 Information Systems Ch. 12

Franchise Legal Documents Ch. 13
Trademarks, Copyrights, Patents, & Trade Secrets Ch. 14

29 Franchisor Business Plan Presentations Franchisor Business Plan due

Nov 5 Investigating Franchise Opportunities Ch. 15

Financing Your Franchised Business Ch. 16
Case Discussion Beano’s Ice Cream Shop Case

12 Developing Franchisee Business Plans Franchisee Business Plan Instructions

Marketing the Franchisee Business Ch. 17
Managing the Franchisee Business Ch. 18

19 The Franchising Relationship Ch. 19

Franchisor Support Services Ch. 20
Case Discussion Universal Business Brokers Case

26 Social Responsibility and Business Ethics Ch. 21

International Franchising Ch. 22

MBA Franchising Syllabus Page 4 of 5

 Dec 3 Case Discussion Ch. 23: Harley-Davidson; Franchisee Business
Plan due

Dec 10 Test 2 Chapters 12-22

Note: Unless stated otherwise, written assignments are to be submitted electronically. Email them to the instructor at
castrogi@fau.edu. Written assignments are due one hour before class begins on the dates indicated above. No
assignments will be accepted late.

Subject to Change: This syllabus and schedule are subject to change in the event of extenuating circumstances. If you
are absent from class, it is your responsibility to check on announcements made while you were absent.

MBA Franchising Syllabus Page 5 of 5