Franchising, in one form or another, has been with us since the middle ages and is a popular option for someone desiring to start a new business, into a new market, or to develop a new business division. "Ray Kroc...a milk shake mixer salesman who discovered the McDonald brothers' small San Bernardino, California hamburger stand in 1954, is credited with unleashing the wave of franchising we know today. He found they were buying so many of his mixers because they had developed a high-volume production system which enabled them to provide fast service with consistent results and low cost. Kroc became their licensing agent and recruited franchisees, starting in the Chicago area. In 1961 he bought out the McDonald brothers' interest and took the title of senior chairman. By 1988, McDonald's had opened its ten thousandth restaurant and today there are over 30,000 McDonald's restaurants worldwide."(History of Franchising. (n.d.). Retrieved November 20, 2015). There is a wide range of franchises. A typical process for choosing a franchise might include the following steps:

1. Get general information on the franchise and on the firm by requesting a packet from the franchisor.

2. Investigate the Uniform Franchise Offering Circular. This is a document required from all franchisors. It should have information on:

a. The history of the franchise, its officers and directors

b. A list of all costs and fees

c. The obligations of all parties

d. A list of relevant litigation

e. The success rate of units in the system

f. Audited financial statements

g. A list of existing franchisees

h. A copy of actual franchise agreement

3. Call and visit existing franchisees other than those suggested by the franchisor to see what their experience is.

4. Examine the nature of supports given:

a. Training programs

b. Opening support

c. Marketing programs

d. Relations between franchisor/franchisee

e. Actual level of investment

You are to take upon you the role of Director of Innovation and Business Opportunities for an organization and research a franchise. Gather information that will be given to your CEO with your recommendation as to whether or not this franchise would be worth pursuing.

Discuss each of the key areas from the steps 1 through 4 above.

Indicate what you believe are the five key factors that would influence your selection of the chosen franchise and justify your choice.