Business Structures and Securities 1 - Essay Example

Business Structures and Securities Recommendation: Partnership Franchising Structure The adoption of partnership Franchising would substantially boost Sandwich shop owners’ endeavor because they will take advantage of the already established and powerful brand (Spadaccini 382). Therefore, the business will not have the task in ensuring that they have attained the clients’ confidence or trust because the firm has already ensured its market. For instance, McDonalds logo is capable of attracting a passing by client in the highway due to the trust it has in the market contrary to a new brand that might not catch one’s eye.

This is because clients will always prefer testing first the new brand’s products before deciding to be daily clients to the Sandwich shop (Spadaccini 407). Additionally, while concentrating on other areas regarding on how to make their business successful, the franchisor usually offers to secure a strategic location for the enterprise. This is to ensure the new franchisees do not fail to have adequate clientele once their business commences, hence little chances of the business of not succeeding.

Therefore, partnership-franchising structure is more beneficial for sandwich owners, since they will not face stiff competition from the already established competitors (Spadaccini 225). The impacts of SEC’ rules and procedures on the Sandwich shop Since the enterprise entails franchising, Sandwich shop owners do not have any right to sell or terminate it, but they can expand while using the franchisor’s brand, hence being an advantage (Spadaccini 382). However, the owners cannot end their relationship with the franchisors until the agreed date is over.

This is because, at the onset of their cooperation, normally the franchisees get into a written contract with the franchisor, which the SEC ensures that each party keenly adheres to the stipulated decrees (Spadaccini 382).Work CitedSpadaccini, Michael. Business Structures. Irvine, CA: Entrepreneur Press, 2007. Print.