Reference no: EM133393754
Case Study: All answers MUST be supported with relevant statute or case law authority.
Scarlett and Sofia have a very successful cat grooming salon known as "nettoyer les pattes" So successful that they decide to sell franchises in the business.
Isla and Possum love cats and grooming them. They really like Scarlett & Sofia's business model.
Scarlett and Sofia explain all the details and they agree that Scarlett and Sofia will have the area west of Parramatta and Isla and Possum will have the all the grooming business from city to Harris Park (the next suburb to parramatta).
Isla is very careful with her money and Possum is more carefree and a risk taker.
They come to you as they are unsure what business structure, they should use to operate the franchise.
Questions:
a) Explain the differences in structure between a business that is operating as a 'Partnership' and a business operating as a company.
b) Advise Isla and Possum on the best business structure as a Franchisee.
c) What expectations should Isla and Possum expect of Scarlett and Sofia (the Franchisors) and what obligations do you think Isla and Possum will have toward them?