Business Ownership: The Franchise Option
Students explore an alternative to starting a business from scratch – investing in a franchise. By learning the pros and cons of franchise ownership while researching and analyzing opportunities, students discover whether or not their personality, interests and abilities fit the franchise opportunities.
Curriculum Link: http://www.econedlink.org/lessons/index.php?lid=543&type=educator Author: Patricia Bonner, Posted: April 21, 2004, Updated: January 4, 2007
Expected Student Outcomes/Objectives
• Using a cost-benefit analysis, students will determine whether they are better suited for starting a business from scratch or through a franchise.
• Students will analyze a franchise for its appropriateness as a new business they would start in their local community
Description of Activities
Activity 1: What is a Franchise?
Students are introduced to the franchise concept as defined by federal and state laws. The role of the franchiser and franchisee are explained. Descriptions and examples of the two general types of franchises (product distribution franchises and business format franchises) are also provided.
Activity 2: Franchise Pros and Cons
Students are asked to imagine they want to start their own business. After reading about the pros and cons of franchises, they are asked to tell whether they think a franchise is right for them. They are directed to include three reasons for their decision as well as one negative.
Activity 3: Selecting a Franchise
Students identify and research two franchise opportunities that they think might succeed near where they live and go to school. They record their findings on a worksheet which offers a list of questions for an investor to consider when selecting a franchise. Answers to the questions can be found at the Franchise Zone and the corporate web sites of the franchisers. At the bottom of the worksheet, students are asked to make a choice between the two options and defend their decision.
If time allows, have students form small groups representing business partnerships. Each group must study the franchise alternatives selected by the various partners then choose one the group thinks would be most successful in the local community. Each group must make a presentation (an oral report, poster, or Power Point presentation) to the class on their choice. The class then votes for the franchise they think will most likely succeed.
Culminating Activity and/or Assessment
Evaluation is built into Activities 2 and 3. Activity 2 has students writing a paragraph that tells which would be better for them – investing in a franchise or starting a business from scratch. Their response must include at least three reasons for their choice and at least one drawback. Students also take a position and defend it in Activity 3 – this time they support their choice of a franchise for them to start near their home neighborhood or where they go to school.
This rubric can be used to assess both position statements. Weights for various elements being evaluated are at the discretion of the teacher.
Extention Activities are available for advanced students.
Instructional Materials Needed
Computers, Internet, Online Links to Activities, SmartBoard or LCD Projector, WhiteBoard/Markers, Word Processing Software, Pencil/Paper, Printer.
Instructional Materials Provided
Online Teacher Instruction Materials, Computer, Internet, Handouts, Links to Online Activities, Student Online Version: http://econedlink.org/543.
Curriculum type: Lesson
Academic subject areas: English; Career-Technical Education
States' Career Clusters: Business Management & Administration; Finance; Marketing
California Industry sector(s): Finance and Business; Marketing, Sales, and Service
Duration: one to two class periods
Grade Targets: 9, 10, 11, 12
Level of Expertise for CTE: Introductory
Standards Addressed: Alignment with Common Core, NGSS, C3 or CTE Standards evident
Keywords: Benefit, Business, Choice, Costs, Decision Making, Entrepreneurship, Legal Forms of Business, Risk
Source: Web Site
Curriculum Link: http://www.econedlink.org/lessons/index.php?lid=543&type=educator
The amount of reading required for this lesson is extensive, and therefore you may want to spend two class periods on this lesson instead of one. Or, you may wish to print out some of the material for the students to read prior to actually going through the lesson