BUS101 - Introduction to Business

Section 18

CASE STUDY - ‘Parkway Drive’

Submitted by

STUDENT NAME STUDENT ID

Asifur Rahman 2023-3-10-363

Submitted To

Mr. Dewan Mehrab Ashrafi

Senior Lecturer,
Department of Business Administration

DATE: 8.12.2023

Q.01. What advantages did he enjoy at each stage of Eat and Pay’s
development? What disadvantages did she face?
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In the sole proprietorship stage, Emma enjoyed the advantage of

independent decision-making. As the sole proprietor, she had the
autonomy to experiment with different restaurant concepts and learn
from firsthand experience. This entrepreneurial freedom allowed her to
explore various ideas without the need for consensus or approval from
partners. However, the disadvantage of limited resources was a
significant challenge. Emma faced financial constraints, leading to
setbacks and failures in her early ventures. Additionally, the lack of
collaborative support meant she had to overcome challenges without
the diverse skills and perspectives that partners could provide.

During the partnership stage with Robert, Emma benefited from shared
responsibilities. While she focused on improving the business, Robert
concentrated on sales, leveraging their respective strengths. The
partnership also brought financial support, enabling the business to
grow and thrive. The limited liability provided by the partnership
agreement protected Emma and Robert's assets from business-related
liabilities. However, the discovery that the Top Hat name was
trademarked posed a potential legal threat, introducing the risk of
losing their entire business if sued over the name.

In the franchising stage with Parkway Drive, Emma and Robert

experienced the advantage of business expansion. Franchising allowed
them to scale the business without taking on additional partners,
reaching a wider audience across the country. The diversification of
ownership through the franchise model attracted individuals from
various backgrounds, contributing diverse perspectives and
experiences. The franchise model also facilitated brand growth, turning
Parkway Drive into a nationwide brand. However, potential
disadvantages included the risk of losing some control over the
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consistency of operations and customer experience with franchisees

operating independently. The success of Parkway Drive also depended
on the ability of individual franchisees to operate their locations
effectively, introducing a level of dependency on external management.

Q.02. How is a franchise different from a partnership or sole

proprietorship?

When a business is operated and managed by one individual, it is called

a sole proprietorship. the owner with complete autonomy to make
independent decisions. However, this autonomy comes at the cost of
unlimited liability, where the owner is personally responsible for all
business debts and liabilities.
On the other hand, a partnership is a legal form of business with two or
more owners. In partnership, partners need to share responsibilities
and profits, like Emma and Robert.

Lastly franchise. A franchise is a contractual agreement whereby

someone with a good idea for a business gives others the right to use
the name and sell products or services in a given area.