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Fabric Super-Store (A)
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Two entrepreneurs were investigating Fabric Super-Store franchise ownership opportunities available to them in Ontario, Canada. The Fabric Super-Store had 68 locations worldwide, comprised of both corporate-owned and -operated stores and licensed franchises. It had recently undertaken to convert all existing corporate-owned stores to franchises. The entrepreneurs had recently re-located to the area after several years pursuing different careers in the United States. Unable to find significant meaningful employment, they decided to pursue franchise-ownership. The Fabric Super-Store appealed to them due to its high-margin product, little competition, low overhead, and steady supply of customers. Recognizing their limitations in terms of finances and product unfamiliarity, the entrepreneurs had to determine the critical points to be negotiated into their proposal for becoming a Fabric Super-Store franchisee.