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Partnerships: Thoughts of Becoming a Franchise Owner business law class - Assignment Example

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Many companies will tell a positive story about owning a franchise of their organization, but fail to accurately and completely tell all of the important legal details. For the purpose of this assignment, I have chosen Domino’s as my main company and have had a chance to view…
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Partnerships: Thoughts of Becoming a Franchise Owner business law class
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Partnerships: Thoughts of Becoming a Franchise Owner business law class

Download file to see previous pages... Next, I am curious whether Domino’s requires a down payment from the purchaser or if other proof of available capital is required before proceeding with a new franchise. It is also important to know whether Domino’s performs background checks or credit checks on franchise applicants. The final question for the company is to determine whether there is any assistance from Corporate for struggling franchises in the form of fiscal resources, utility resources or even assisting in vendor or supplier disputes.
Each of these questions has a particular legal aspect to it that is important to know and understand before any franchisee attempts to complete any fiscal or legal transaction. Based on the strong reputation and excellent resources provided on the website for franchise applicants, Domino’s likely offers more than just the naming rights to their franchisees. The company has a particular tasting product that requires specific ingredients, cooking materials, and a process that must be followed to keep the product tasting the same for all of its locations. Therefore, Domino’s will likely provide contract opportunities and assist in negotiations with its major vendors and suppliers for new franchisees. Furthermore, this would also suggest that Domino’s provides informational assistance in the very least from its corporate offices to franchise stores. It likely does not offer fiscal or utility assistance, but will definitely require that the franchise meets a specific set of criteria through annual or bi-annual inspections. It is often customary for franchise applicants to show proof of fiscal health and ability for the franchisee to be self-sustaining. Therefore, some form of fiscal proof must be provided to show the company that the individual is able to fund the upstart and continuation of such a business venture. Finally, the Domino’s website mentions that applicants must have good credit; ...Download file to see next pagesRead More
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