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NAME: ROS SYAFIZA BINTI ROSLAN NO.

MATRIC:191240373

BOOK A

a) List the 4 ‘Ps’ that need to be considered by Ramona before decide to choose the best
possible franchise for her involve.

 Product
 People
 Price
 Personalized support
b) Referring to answer (1a), explain how it help Ramona before decide to choose the best
possible franchise.
As a business women to be, Ramona need to think before start her own business. She need
to decide the possible franchise that her involve. First, product that are very important
point. This because as a franchisee, they need to buy the product that franchisor provide
which is the customer willing to buy from you franchise business. Such as , if Ramona choose
McDonald as a franchise business, she must get all material from supply that McDonald
provided. This because the franchisor always launch a new product that customer will buy at
franchise store.
Second, people is the team to support you in building your own business. This because you
not only buying a brand and product. As a leader you need to ask and meet them and
encourage to talk with you as owner so, they can understand their plan for the future of the
business. As such,These people will be most important asset to building and growing
Ramona franchise business that she choose.
Third, price is the cost to buy a franchise business. Every franchises come in a different shape
and sizes. There always have something can blend into financial situation. In this case,
Ramona need to think a twice before running a franchise business because the cost of run a
franchise business need a huge cost.
Lastly, personalized support. As a businessman or businesswomen that need personalized
support because owning a business its very tough. The things can be wrong at all hour. So
that to make sure the situation complete normal. They need a staff and support structure in
place to help you.

c) discover the important of Franchise Disclosure Document for Ramona before she decide to
become part of the family of selected francise
The Franchise Disclosure Document, or FDD, is a legal document that the Federal Trade
Commission (FTC) requires franchisors to offer to potential franchisees, at least 14 days past
to a sale. An FDD is planned to give potential franchisees the opening to fully evaluate a
specific franchise company and permit them to make decision on whether or not to buy a
particular franchise. Concisely, the Franchise Disclosure Document is part of the due
diligence means each potential franchisee must undertake carefully before signing a
franchise agreement. The FDD contains 23 mandatory sections that provide nominees with
info regarding costs and fees, legal issues, turnover rates, and more. These documents can
be lengthy, technical and tedious, in particular for someone new to franchise world, but
MBB is there to support guide you in making a sound choice. Since the FDD is a legal
document, you may request the help of an lawyer comfortable in the area of franchising to
go through the document for you.
d) Compare the different between franchise disclosure document and franchise agreement.

The purpose of the Franchise Disclosure Document (FDD) is to describe the relationship
between the franchisor and franchisee, provide the franchisee with the information they
need to begin to understand the franchisor and its offering and be used by the prospective
franchisee as a basis for then conducting due diligence on the opportunity.However, it is the
Franchise Agreement - the written, binding contract between the franchisor and franchisee -
that legally governs the relationship between franchisor and franchisee.

The Franchise Agreement is a document that is signed by both parties upon completion of
the deal to do business together. In contrast, the FDD is presented prior to the final
agreement to provide the potential franchise with the opportunity to review the information
in the FDD before making a final determination about whether or not to become a
franchisee with the organization. The FDD involves comprehensive details about the
company's background and history. Included is the disclosure of any lawsuits or bankruptcies
that have occurred within the franchise organization a host of financial data; and distribution
channel information. Any confidentiality restrictions are also disclosed, as far as what a
franchisee may and may not discuss with others.

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