Cousins Maine Lobster

1. Suppose that your best friend is considering purchasing a

franchise such as Cousins Maine Lobster. What advice would you
give him or her about the right way to go about purchasing a
franchise?
He should make fully assessment of himself, and ensure they make
fully analysis of the available franchise, the one he had in mind to start
with, and they he did not have to ensure they have done visits, make
contacts with different people who have or are dealing with franchise.
Ensure he has fully considered all the operational costs by doing his
own research and doing the right research when it comes to
prediction. estimation and approximation of the costs. He should
search for an Attorney who will be on his side when it comes to
legalities, such as transfer of various properties, witnessing when
signing legal documents. He should be very much willing to make the
franchise more productive, he should work hard, set goals and be
more productive.

2. What advantages do entrepreneurs who purchase a franchise

get? What disadvantages do they encounter?
The primary benefit of buying a franchise is that it offers
independence while benefiting from the extensive network and brand
recognition of the franchisor.
Secondly, regarding the experience of running a business, the
franchisor has a responsibility of training franchisees especially on
issues like the business model, culture, and practices.
Thirdly, the franchise model Entrepreneurs who purchase a franchise
receive several advantages:
 Firstly, they gain independence as business owners while also
benefiting from the established network and brand recognition
of the franchisor. This can provide a head start in terms of
customer trust and loyalty.
Secondly, franchisees often receive training and support from
the franchisor. This includes guidance on various aspects of
running a business such as the business model, culture, and
practices. This can be particularly helpful for individuals who may
not have prior experience in entrepreneurship.
Lastly, the franchise model typically comes with established
systems and processes in place. This can save entrepreneurs
time and effort in developing their own strategies from scratch.
They can leverage proven methods that have already been
successful within the franchise system.
However, there are also disadvantages that entrepreneurs may
encounter when purchasing a franchise. One major drawback is that
they have less control over certain aspects of their business compared
to independent entrepreneurs. Franchisees must adhere to specific
guidelines set by the franchisor regarding products or services offered,
pricing structures, marketing strategies, etc.
Additionally, purchasing a franchise often requires significant upfront
costs such as initial fees and ongoing royalty payments to the
franchisor. These financial obligations can limit an entrepreneur's
flexibility in managing their finances or making independent decisions
for their business.
Furthermore, if there are any issues or conflicts with the franchisor or
other franchises within the system, it may be challenging for individual
franchisees to resolve them independently since they are part of a
larger network governed by contractual agreements.
Overall, while buying a franchise offers many benefits like brand
recognition and support from experienced professionals, it also comes
 with certain limitations on autonomy and financial obligations that
entrepreneurs need to consider before making this decision.

3. What is the Franchise Disclosure Document? How can it help

prospective franchisees evaluate the various franchise
operations in which they are considering investing?
The Franchise Disclosure Document (FDD) is a document that every
franchisor is required by law to give prospective franchisees before any
offer or sale of a franchise.
It outlines 23 important pieces of information about the franchisor and
the franchise.
The FDD helps prospective franchisees because since it is a disclosure
document, all the relevant facts about the franchise can be obtained
prior to making a decision. For example, it has information about the
initial and ongoing franchise fees as well as the investment required to
open a franchise.
The Franchise Disclosure Document (FDD) is a legal document that
franchisors are required to provide to potential franchisees before any
offer or sale of a franchise. It contains 23 key pieces of information
about the franchisor and the franchise opportunity.
The FDD is designed to help prospective franchisees evaluate different
franchise operations they are considering investing in. By providing
comprehensive information about the franchise, it allows potential
investors to make an informed decision.
For example, FDD includes details about the initial and ongoing fees
associated with owning a franchise, such as royalty payments or
advertising fees. It also outlines the total investment required to open
and operate a franchise, including costs for equipment, inventory, and
training.
By having access to this information upfront, prospective franchisees
can compare different franchises and assess whether they align with
their financial capabilities and goals. The FDD helps ensure
 transparency in the franchising process by providing all relevant facts
necessary for making an informed investment decision.

4. Cousins Maine Lobster wants to expand its franchise

internationally. How popular is franchising as an "export" to
other nations? What steps should Tselikas and Lomac take to
cultivate a successful international franchise operation?
Most industrialized countries presently "export" franchises, indicating
that there is already a demand for franchised brands in the majority of
nations throughout the world. For instance, franchising increased by
almost 20% in Japan in 2012 alone. The country has been slowly
rebuilding since the disaster in 2011. The industry expanded by almost
$19 billion as a whole.
The developing world has the biggest market potential for Cousins
Maine Lobster. Due in large part to the rising number of middle-class
people who are interested in purchasing a luxury good that they can
own and manage according to their own terms, regions like Africa and
China have historically demonstrated enormous growth for the
franchise business. Due to its inexpensive startup expenses and
extensive training opportunities, Cousins Maine Lobster is an
investment that is particularly accessible to those living in poor
countries. For instance, there are already over twenty franchises of our
brand functioning in South Africa, and new ones are opening every
day.
Cousins Maine Lobster has yet to fully exploit some potential markets.
Many developing countries, including Mexico and India, have
experienced significant growth during the past ten years. These
nations are anticipated to rank among the top five in terms of
potential for the global market by 2023.
Another region of tremendous interest is the Middle East. Even though
they lack the cash of more "developed" countries, their residents are
ready to invest in franchises and establish themselves as successful
businesspeople. The Middle East has the largest gross domestic
product, which means there is more potential for our brand to grow
and for more employment to be created as a result.
The following actions should be followed to create a prosperous
worldwide franchise business:
A. Conducting market research to determine which regions
are optimal for growth.
B. Finding a partner with an American base who has the
contacts and know-how to develop the brand in the other
country. Establishment of a training facility in a foreign
country where prospective franchisees can learn about all
facets of running a Cousins Maine Lobster business.
C. Having a defined regional marketing strategy.
D. Providing support services to ensure the success of
prospective franchisees in the area. For a prospective
partner, resources like training, finance, and assistance are
quite beneficial.
E. Finding a method to hasten the sale of franchises to
overseas owners (perhaps through a network of franchise
consultants).
F. Connecting with other businesses that wish to grow
internationally.
G. Looking for new investors who are enthusiastic about
purchasing franchises abroad.
H. Identifying a strategy to attract more overseas clients to
open new sites.
I. Think about how to use social media, particularly Twitter
and Facebook, to raise brand recognition in the intended
audience.
J. Asking for funding to begin the expansion process.
K. Developing a mobile app strategy, digital marketing, and
website presence.