Fairfield Inn, in its decision on how best to structure its own unit expansion (standard franchising, the 'McDonald's Plan,' or syndication), should learn from the experience of other companies and anticipate potential issues when trying to force the current employee management system onto newly created franchise properties.
Question - Assume Marriott Corporation decided to pursue Fairfield Inn unit expansion through the model of franchising. Given the values, needs and wants of Fairfield Inn's target markets, discuss:
McDonald's Plan
a. What employee management system issues would you anticipate encountering under this franchising structure? What makes you think that these will be issues under this particular of franchising structure? Discuss at least three (3) issues that you would anticipate.
b. What are the implications of the issues you identified in (a), above? In other words, why does it matter? What is(are) the funding mechanism impact(s) of the issues you have identified? Discuss the two (2) most serious implications you raised in part (a).