Greg plans to open up three Hottie Pata ? tee franchises in the greater Denver area. He just informed you that he plans to negotiate with the franchisor to eliminate the Big Potato Head that graces the roof of these restaurants. Greg is likely to learn that:
A) the parent company will give him a start-up cost break for the same amount that it would have to pay for three of these signs.
B) he is making a smart decision because it is not the sign that will bring customers to his potato bar. It is the wide-selection of toppings and six different ways he will cook potatoes.
C) it is nonnegotiable due to company rules.
D) his failure rate will not increase or decrease because franchises traditionally have low failure rates.

Question

Quizplus · Accepted Answer

The Big Potato Head is likely a trademarked symbol of the franchisor and its removal would go against company rules. It is not likely that the franchise parent company would offer a start-up cost break for the elimination of the sign. While the wide selection of toppings and cooking options will certainly be important to the success of the franchise, it is not relevant to the question of negotiating the removal of the sign. The failure rate of franchises may be low, but this is also not relevant to the question at hand.

Greg Plans to Open Up Three Hottie Pata?tee Franchises