A) Research your franchise and summarize what you find in a discussion post. You must pick from the 2017 top franchise list and answer the questions below based on the list, and you must also do research outside of the list to answer #6 & 7. Provide a citation for your outside source, including web address if you use a website. (42 points) 1 - What is the franchise name? The franchise name is Planet Fitness. 2- What is its rank on the list? The rank of planet fitness on the list is 32nd on the 2017 Top Franchises list. 3- Why did you pick this franchise? I picked this franchise because I really enjoy anything regarding fitness. Therefore, I thought it would be interesting to learn more about this particular franchise. 4- How much $ does …show more content…
While the ongoing royalty fee is 7% and ad royalty fee is 9%. 6- What is one fun fact about your franchise? A fun fact about Planet Fitness is that they give out free food. On the first Monday night of every month the members that show up can eat it, and they give out about 3 million pieces of pizza every year. Also, the second Tuesday of every month is free bagels, in which they give out over 500,000 bagels a year. Members can also get tootsie rolls on the daily basis, which totals to about. I find it interesting because people go to the gym to lose weight, not to eat unhealthy carbs such as the pizza and bagels this gym offers. 7- Tell me about the person or persons who started the franchise. This franchise started in 1992 in Dover, New Hampshire, when Michael and Marc Grondahl acquired a financially struggling gym, Gold’s Gym in Leominster, Massachusetts. They reduced they gym’s membership prices to compete against well-known brands and focused on serving occasional or first-time gym users. However, they were unsuccessful and became evicted. Before naming themselves Planet Fitness in 1994, they were first called Coastal …show more content…
Think like a lawyer. Think of questions that will help you evaluate the potential for success of the franchise and any risks associated with the investment. (35 points) What entities and/or individuals will be responsible for performance of various obligations under the contract? Under what conditions might the franchisee not be permitted to renew? What will happen to the franchisee’s lease for the premises of his business, and to the assets of the business upon termination? What are the major problems I should expect during the first year of operations? How does your franchise compare to other franchises in the same industry category group? C) Make your own pro and con lists about franchises. Your list should weigh the benefits and detriments of operating a business as a franchise. List at least 4 pros and 4 cons. Finally, indicate whether or not you would like to be a franchisee. (16 points) Pros Cons Established Brand and Customer Base High start up Less Risk Less freedom Ongoing Research and Development. False expectations Support from others Royalty