However, determining the type of business to create requires implementing the significant elements of an alternative dispute resolution programs “in order,” to find equitable solutions to emerging isputes that company’s encountered. Once an entrepreneur decides on a specific type of business then selecting vendors is the next step in the process. Serving as a general manager for twelve years owning a franchise “such as,” Whole Foods has been her greatest desire. In fact, Jennifer is saving enough money to purchase her own franchise business.
Starting a franchise “such as,” Whole Foods incurs its own distributors to purchase supplies at the same cost as other independent franchises. Locally and globally Whole Foods is an established franchise whereby opening several other stores for built-in customers In Inaccessible areas. Establishing and malntalnlng the Image as well as services each entity must learn to follow directives. Consequently, If franchisees lack the experience to keep a quality business funded and operational decrease the elements of success. Sometimes making poor decisions cause a negative effect o the franchise because of a lack of commitment and support.
Hence, before entering into an agreement by researching the concept of franchise play a significant role in starting a business. Often, Franchisees have the inside track in reference to franchise relationships along with the necessary resources “in contrast,” to the larger Franchisors. Conversely, federal, and state laws govern as well as protect the Franchisee. “In addition,” to the Uniform Commercial Codes the aspects of contract law Is applicable. “According to,” Kubasek. et al. , the franchisee can sue for breach of contract If the franchisee does not have a clear understanding of terms, and language of the contract (201 2, p. 85). Nevertheless, for legal purposes these vendors Implement venue clauses to assist with determlnlng the location of venue. In this paper the subjects to discuss pertains to comparing and contrasting various business choices advantages and disadvantages whereby implementing various legal orms along with implementing ADR’s “such as,” arbitration, mediation, negotiation or summary by Jury for resolving organizational disputes. Advantages and Disadvantages of a Franchise “Although,” Franchises are costly “but,” incur the highest rate of success along with the lowest rate of failure.
The reason for these results pertains to implementing a successful business formula. Nevertheless, entrepreneurs entering the franchise business have the advantage of establishing services, and products along with the necessary training for becoming an entrepreneur In business. When seeking successful franchises Investors search for a usiness with low repayment risks whereby likely to Invest money on premise. In addition, consumers prefer to work and trust famlllar companies because the brand awareness is recognizable.
In an attempt to assist franchisees with success these emerging entrepreneurs. Often, at the local and national levels another advantage involves advertising the services, and products whereby initiating buying power without absorbing costs. Sometimes Nevertheless, owning a business franchise come with some disadvantages “such as,” dipping into the profits by charging ongoing royalty charges to ensure the aspects of consistency. Moreover, many franchisors insist that franchisee adhere to manual of operations whereby infringing limitations on the franchisee’s creativity.
Choosing Business Forms Entrepreneurs can purchase franchises as a limited liability corporation or sole proprietorship. However, Jennifer made the decision to purchase her business as a limited liability corporation because of the amount of her contributions it allows room for personal liabilities as well as future partners. Moreover, a limited liability corporation has a simple taxation system. Furthermore, as the owner, Jennifer can implement her personal statements or profits and losses to avoid creating separate business statements.
The decision not to purchase as a sole proprietorship was in Jennifer’s best interest “especially,” if business folds whereby leaving her responsible for the debts incurred. Although, organizing a sole proprietorship is easier and inexpensive “in contrast,” to the aspects of operating a limited liability corporation can protect her assets without giving up the privilege of ownership. Hence, the decision to implement an S corporation incurs difficulties whereas forming Limited Liability Corporation provides he same limited liabilities to both corporations and owners of franchises.
Nevertheless, limited liability corporations do not allocate profits and losses in proportions in reference to the interest of ownership; or hold and draft the minutes from annual meetings whereby making keeping the records flexible and simple (Kubasek, Browne, Herron, Giamepetro-Meyer, Barkacs, Dhooge & Williamson, 2012, p. 776). Implementing ADR Methods After starting her franchise Jennifer made the conscious decision to implement the process of mediation as an alternative resolution to emerging company disputes.
Her rationale for this decision is because he method is cost effective along decreases the aspects of litigation risks and incurs collaborative agreements. Incidentally, mediation is a creative process that assist entities in finding equitable solutions an increases the morale of the employees. Prior to litigation or investigation Jennifer entered into a Universal agreement to mediate any disputes emerging between the Equal Employee Opportunity Commission and the employer (U. S. Equal Employee Opportunity Commission, 2013, Para. 1). The process of mediation incurs high autonomy “in contrast,” to arbitration and litigation mechanisms.
Within the franchise arena in the past several years the process of arbitration decreases in favoritism as an alternative resolution method because of process of appeals validity and fairness. The process of arbitration is increasingly implementing expensive and ineffective panels. “On the other hand,” in the business setting owners of franchises tend to shy away from unsuccessful negotiation measures along with other alternative dispute resolution methods “such as,” private, summary, and mini trials. Through the commissary Jennifer will purchase the necessary supplies from the franchises international partners (Business Analysis:
Whole Foods Market). Vendors and Venue Clause Often, Franchisees have the inside track in reference to franchise relationships along with the necessary resources “in of contract law is applicable. “According to,” Kubasek, et al. , the franchisee can sue for breach of contract if the franchisee does not have a clear understanding of terms, and language of the contract (2012, p. 785). Nevertheless, for legal purposes these vendors implement venue clauses to assist with determining the location of venue. However, if Jennifer encounters the need for litigation she can file suit in Circuit Court f Illinois (Illinois Circuit Court, 2013).