Discussion Question 3 – Applying the Decision-Making Model:Currently Chipotle runs all of it stores as company owned storesmeaning that all the managers and employees are employees ofChipotle and not employees of franchisee operators. Chipotlesleases all of it restaurant locations so it does not technicallyown the real estate. If Chipotle decides to “sell off” its existingcompany operated stores (something that Wendy’s has just completed)to franchisees Chipotle would get a large upfront franchise fee,monthly royalties from monthly sales, and monthly markup fees fromthe sale of supplies and food to the franchisees. Looking at Step 5of the decision model “Assess the Qualitative Factors”, what is animportant qualitative factor would be important if Chipotle movedto allow franchising of its restaurants? Please discuss only onequalitative benefit or qualitative detriment and allow otherstudents to comment or add to the list.

Answer rating: 100% (QA)

I would like to point out a qualitative detriment to the franchising option being the uncontrollabil... View the full answer