Corporate-owned Stores Versus Franchising for Comfort Cloud Shoes

Denise T. Ogden , James R. Ogden
Revised by: Nancy J. Rabolt , Judy K. Miler

Business Case
Source: Bloomsbury Fashion Business Cases
DOI: 10.5040/9781474208789.011
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Abstract

A branded shoe manufacturer and corporate specialty store retailer has expanded their sole proprietorship business since its inception, many years ago. Their growth, over the years, included moving from not only independently producing and selling their private label shoes, to manufacturing their shoes offshore, and selling their product to independent retailer-“dealers” to sell. The company has now reached a point where they are considering further expansion of their business. A board of director’s meeting was held to determine what the best strategy should be to expand the retail business profitably. During the meeting both franchising and opening more corporately-owned stores is suggested as the best method of expansion. Pros and cons to both methods are discussed. Since both expansion options are costly, the board is at a standstill as to what should be done.


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