The franchise contract requires the franchisee to contribute

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The franchise contract requires the franchisee to contribute 1.5 percent of gross revenue to a national advertising campagin. according to the contract pipe dreams will finance the required fixtures for the store for ten years . in addition the franchiser supplies all the inventory at very favorable prices because it purchases in large quantities. ralph knows he can buy tobacco products from a variety of wholesalers he also has some ideas on what would make a tobacco shop successful in his town ralph knows that pipe dreams franchisees have had a high success rate in the past. assuming ralph has adequate capital would you recommend that he invest in the franchise or open his own tabacco shop why?

Reference no: EM132219636

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