Franchise Analysis: Choosing Wal-Mart as a Franchisor (Coursework Sample)

Franchise Analysis
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Franchise Analysis
From the franchise chart, Wal-Mart’s Franchise option appears to be the best deal basing on the following aspects. First, considering the franchise fee, Wal-Mart offers the cheapest fee compared to Home Depot and Sam’s club. The fee sums up to $ 100, 000 against & 150, 000 and $ 250,000 for Home depot and Sam’s club respectively. Wal-Mart’s fee is the cheapest because it operates in a large economies of scale (Alon, 2010). For this reason, it has taken the initiative of providing entrepreneurial opportunities for people within the US and globally as well. Therefore, it will be ideal to enter into a franchise deal with a lesser budget as opposed to what Home Depot and Sam’s Club could cost.
Another reason for choosing Wal-Mart as a franchisor is because it offers entrepreneurial training to both managers and employees to the potential franchise units. This will be advantageous to the intended franchise unit as it will provide managerial insights that can be useful and in line with Wal-Mart’s level of operations. Additionally, Wal-Mart offers loan services to the potential franchise units at favorable interest rates (Krafft & Mantrala, 2009). The option to of the loan can provide a boost to the project if the team will opt to finance the franchise unit using loan from Wal-Mart.
Another reason that renews the Wal-Mart as the most suitable franchisor because it offers the an extensive range of product under their labels, These products includes such as movies and music, home clothing, Footwear and, furniture, jewelry, toys health and beauty, electronics, movies and music, home and, furniture and sporting goods and fitness. This aspects provides will provide a franchise units with a variety of products to specialize at (Krafft & Mantrala, 2009).
Therefore a franchise deal with Wal-Mart is advisable due to its most well-established brand image compared to Home Depot and Sam’s Club options. Which offers high franchise fee, fewer training benefits as well as fewer product range.