Discuss why did the company buy back the franchises at a time when it was in financial trouble since this action only placed an additional drain on company cash.

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Instruction: Read the article below on BOSTON CHICKEN/MARKET. Then, you are required to produce a formally written assignment with thorough analysis based on the case, by answering all the following three questions:- CASE STUDY (SUMMARY): BOSTON CHICKEN/MARKET The original Boston Chicken store was started by two young entrepreneurs in Massachusetts. George Naddaff had twenty years of franchising experience when he first visited the Boston Chicken in 1987. He saw tremendous potential in the restaurant and in 1988 he purchased the outlet. The company then went through a tremendous growth period and began offering franchises. By the end of 1991, the company had 43 company-owned stores and 100 franchised outlets. In 1992, controlling interest in the company was sold to a group of former executives from Blockbuster Entertainment Corp. and in 1993, the company stock was sold publicly. By 1997 the company was in serious financial trouble. The stockholders eventually discovered that the profits the company had reported were misleading because the area developers for the franchise had been losing money and these losses were not reported in the financial statements of the corporation. By October 1998, the company had filed for reorganisation bankruptcy. McDonald's purchased the company after it had filed for bankruptcy originally just because the Boston Market sites were attractive to McDonald's. McDonald's intended to convert the sites to McDonald's outlets or to other McDonald-owned concepts. However, after the purchase, McDonald's found many of the sites had a positive cash flow and that many Americans liked the food that was served. Therefore, instead of closing and converting all of the stores, McDonald's decided to keep many of the stores open and to add new food items. Source: https://www.bostonmarket.com/case Instruction: Read the article below on BOSTON CHICKEN/MARKET. Then, you are required to produce a formally written assignment with thorough analysis based on the case, by answering all the following three questions:- CASE STUDY (SUMMARY): BOSTON CHICKEN/MARKET The original Boston Chicken store was started by two young entrepreneurs in Massachusetts. George Naddaff had twenty years of franchising experience when he first visited the Boston Chicken in 1987. He saw tremendous potential in the restaurant and in 1988 he purchased the outlet. The company then went through a tremendous growth period and began offering franchises. By the end of 1991, the company had 43 company-owned stores and 100 franchised outlets. In 1992, controlling interest in the company was sold to a group of former executives from Blockbuster Entertainment Corp. and in 1993, the company stock was sold publicly. By 1997 the company was in serious financial trouble. The stockholders eventually discovered that the profits the company had reported were misleading because the area developers for the franchise had been losing money and these losses were not reported in the financial statements of the corporation. By October 1998, the company had filed for reorganisation bankruptcy. McDonald's purchased the company after it had filed for bankruptcy originally just because the Boston Market sites were attractive to McDonald's. McDonald's intended to convert the sites to McDonald's outlets or to other McDonald-owned concepts. However, after the purchase, McDonald's found many of the sites had a positive cash flow and that many Americans liked the food that was served. Therefore, instead of closing and converting all of the stores, McDonald's decided to keep many of the stores open and to add new food items. Source: https://www.bostonmarket.com/case

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In its original format Boston Chicken had a unique concept of their product and their product was co... View the full answer