SUCCESSRaghav Goyal

James Coy-Dibley

Pizza Delivery

The chapter starts out with a little Caesar's delivery guy driving around.

As they drive around the author describes the town and the job of the delivery boy.

Owner

The owner of the Little Caesars pizza was a former NHL player Dave Feamster

Franchisers and Franchisees

The chapter then goes on to describe the relationship between franchisers and franchisees.

Later in the chapter the author discusses McDonalds franchising techniques.

Free Enterprise with Federal Loans•Costs about $1.5 to open a burger king. (About 1/3 of that for a McDonald’s.

• Smaller franchisees can be only $50,000

• In 1998 the International Franchise Association (IFA) released studies proving that franchises fare better than independent businesses. •A survey asked franchises if they considered themselves successful. 92% said yes.•This survey, rather conveniently, only surveyed franchises that were SILL IN BUISSNESS.

•Within 4-5 years of opening, 38.1% of franchised businesses fail, while on 31.9% of independent businesses fail.•PUNCH LINE: Franchised businesses are associated with higher business failure rates and lower profits than independent business ownership.

•Many lawsuits in the fast food industry.

•One of the main ones is because of encroachment.

• Encroachment is when chains are put together.

•1978: congress passed the 1st legislation to regulate franchising.

•Requires fast food chains to provide lengthy disclosure statements that spell out their rules for prospective franchisers.

•However, apart from this disclosure there are very few laws/basically none that regulate the activities of franchises. •Contracts offered by fast food chains often:•Require the owner to waive the right to complain in front of a state jury.•Require the owner to only buy from a specific seller, regardless if they are more expensive. •Allow the owner to sell the restaurant only to an approved buyer. •Specify that the contract can be cancelled without cause or need, but rather at the discretion of the franchise.

•Subway has been called the “worst” franchise in America.

•There are 15,000 subways in total, costing only about $100,000 to open each.

•Subway is the worst because of how each restaurant is started:

•They are built through development agents. These agents are pain based on how many restaurants are opened in their territory. It seems that the franchise is just as interested in the number of subways opened as it is in the number of sandwiches sold.

•Congressman from North Carolina introduced a bill into congress that would make franchises obey some principles that all companies in America had to obey. They would have to run their business in “good faith” with the others.•The bill was criticized saying it interfered with capitalism……

•Many restaurants are opened thanks to the Small Business Administration (SBA), which was designed to help small business stay on top. •It has ended up hurting the small businesses, as many loans are taken out to start new fast food chain restaurants. •Of the nearly 600 restaurants opened with these loans, Subway has 109 of them.

The World Beyond Pueblo

This section was all about Little Caesar’s pizza again.

•Little Caesar’s Pizza is old-fashioned, and losing money every year now.

•Papa John’s Pizza has come to Pueblo, which is Little Caesar’s origin.

•The section then goes on to tell of a certain event called “success,” coordinated by a man named Christopher Reeve, that happened in the McNichols Sports Center Arena in Denver. •The owner of Little Caesar’s took several employees there. •That is pretty much all the section talked about.