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| Franchising This video can be found on the Student DVD.Summary: Franchising is a more expedient way of self-ownership according to the BusinessWeek TV video on your Student DVD. Purchasing a franchise as a way to go into business for oneself has fewer barriers than attempting a new start-up small business. A franchise is a proven system with considerable support for the franchisee. Front-end expenses vary. Some franchises can require substantial fees where others have significantly lower annual costs. Just Dogs Gourmet is the featured franchise for the segment. The franchise fee is approximately $65,000 per year; however, the owner indicates that their gross sales will exceed $200,000 this year. The second part of the segment features an interview with Rieva Lesonsky, the editor of Entrepreneur Magazine. She reinforces the observation that financing a franchise through a small business loan is relatively easier than other business start-ups. They are "known" systems and with SBA Loans, the federal government guarantees the loan. The franchise fee is only one part of the franchise agreement. Royalty payments to the franchisor range between 8 and 15% of gross sales. As in any small business venture, the individual must have a passion and love for the business. The top 5 Franchises are (1) Subway, (2) Curves, (3) Quiznos, (4) Jackson Hewitt Tax Service and (5) UPS Store.Discussion Questions
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