FRANCHISE
obtain advertisements of franchises in local
newspapers and other periodicals;
analyze the advantages and
disadvantages of franchising
WHAT ARE THE ADVANTAGES AND
DISADVANTAGES OF OWNING A FRANCHISE?
 ADVANTAGES
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“Owning a franchise allows you to go into business for
yourself, but not by yourself.”

Franchises offer important pre-opening support:

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Franchises offer ongoing support:
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DISADVANTAGES
Franchises offer important preopening support:

site selection
design and construction
financing
training
grand-opening program
Franchises offer ongoing
support:
training
national and regional advertising
operating procedures and operational
assistance
ongoing supervision and management
support
increased spending power and access to
bulk purchasing
Carl's Jr. Restaurants Franchise Information
< Request More Info
Offering Financial Assistance
While CKE Restaurants does not provide
financing, we have relationships with a number of
financial providers. Our minimum financial
requirements are $1 million net worth and
$300,000 in liquid capital to invest per store
developed.
Business Established: 1941
Franchising Since: 1984
Franchised Units: 992
Special Incentives
VetFran Participant
Company Owned
434
Units:
Start-up Cost: $300,000
Total Investment:
$1,315,000 to
$1,859,200
VetFran Incentive
We offer a 50% discount on the initial franchise
fee.
Veteran Hired Since
N/A
2011
Veteran Owned Units N/A
Visit Carl's Jr. Restaurants
DISADVANTAGES

The franchisee is not completely independent.
Franchisees are required to operate their businesses
according to the procedures and restrictions set forth
by the franchisor in the franchisee agreement.
These restrictions usually include the products or
services which can be offered, pricing and geographic
territory. For some people, this is the most serious
disadvantage to becoming a franchisee.
In addition to the initial franchise fee, franchisees must
pay ongoing royalties and advertising fees.
Hamburger University
McDonald's Center of Training Excellence
Our Students
Since 1961, class attendance has grown from an average of 10 students to more
than 200 students each week, and more than 5,000 students a year participate in
Hamburger University courses and learning activities.
Hamburger University’s professional training and operation staff design, deliver
and implement the core curriculum throughout the system using a variety of
learning techniques, including elements of self-study, e-learning and classroom
training.
Students are trained from the time they step into the restaurant…preparing
themselves for continuous learning at our Regional Training Centers and
Hamburger University.
DISADVANTAGES

Franchisees must be careful to balance
restrictions and support provided by the
franchisor with their own ability to manage their
business.
A damaged, system-wide image can result if other
franchisees are performing poorly or the
franchisor runs into an unforeseen problem.
The term (duration) of a franchise agreement is
usually limited and the franchisee may have little
or no say about the terms of a termination.
Hamburger University



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February 24, 1961, Hamburger University's first class of 15 students
graduated
Today, more than 5,000 students attend Hamburger University each
year
Since 1961, more than 80,000 restaurant managers, mid-managers
and owner/operators have graduated from this facility
At McDonald’s, our training mission is to be the best talent
developer of people with the most committed individuals to
Quality, Service, Cleanliness and Value (QSC&V) in the world. Our
strong commitment to the training and development of our People
has resulted in many “firsts” and honors, including being…
the Federal Trade Commission
requirements of a Uniform
Franchise Offering Circular
The Uniform Franchise Offering Circular, or UFOC, is a
document that contains information franchisors must
provide to franchisees by law. Its contents are regulated by
the Federal Trade Commission. UFOCs are deemed to be
reliable and if the information provided is false, franchisors
are subject to civil penalties. However, the FTC does not
require filings. There are 13 states that do keep UFOCs on
file, and 23 states that require business opportunity
disclosure filings.
 The UFOC is designed to give prospective franchisees all the
information relevant to a franchise offering. It is made up of
three basic parts: 23 sections (called Items) describing
various aspects of the franchise program; a set of the
franchisor's audited financial statements; and a copy of each
form or contract a franchisee is expected to sign if he/she
intends to buy the franchise.

The standard Items in a UFOC are
as follows:

Item 1: The Franchisor, It's Predecessors And Affiliates
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Item 2: Business Experience
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Item 3: Litigation
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Item 4: Bankruptcy
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Item 5: Initial Franchise Fee
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Item 6: Other Fees
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Item 7: Initial Investment
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Item 8: Restrictions On Sources Of Products And Services
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Item 9: Franchisee's Obligations
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Item 10: Financing
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Item 11: Franchisor's Obligations
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Item 12: Territory
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Item 13: Trademarks
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Item 14: Patents, Copyrights and Proprietary Information
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Item 15: Obligation To Participate In The Actual Operation Of The Franchise Business
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Item 16: Restrictions On What The Franchisee May Sell
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Item 17: Renewal, Termination, Transfer And Dispute Resolution

Item 18: Public Figures

Item 19: Earnings Claims
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Item 20: List Of Outlets
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Item 21: Financial Statements
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Item 22: Contracts
investigate state requirements for
disclosure statements prior to
purchasing a franchise

The FDD underlies the franchise agreement
(the formal sales contract) between the
parties at the time the contract is formally
signed. This franchise sales contract governs
the long-term relationship – the terms of
which generally range from five to twenty
years. The contracts cannot generally be
changed unless there is agreement of both
parties.
explore the issues involved with taking over an existing
family business or expanding an existing family business
to create additional entrepreneurial opportunities.

The management and operation of a
family business raises legal and strategic
challenges that traditional businesses
rarely face, primarily because love and
business often don't mix
The challenge

is to select the child, children, or other
relatives who will ensure the continuation
of the business as a family enterprise,
provide participating roles for the
remainder of the family, and accomplish all
of this while maintaining family harmony
The key objectives

The Plan are to provide smooth and
seamless transition of the ownership and
control of the business, provide liquidity
for the retiring generation, minimize
estate taxes, preserve capital in the
company for future growth, and, wherever
possible, maintain family harmony.