Explain the term return on equity. 3 Marks

Explain the tern internal rate of return. 3 Marks

Outline why a prospective franchisee would be interested in the targeted franchise return on equity and internal rate of return. 5 Marks

Describe the return on equity and internal rate of return for Fast Eddies and its franchisees between 1994 and 1998 (include explanation of possible reasons for the

changes. 9 Marks

Using the results for Fast Eddies, discuss how the business model dynamics of a franchise may be used as a mechanism for growth. (use the excel sheets Expansion

Company Owned and Expansion- Franchised). 15 Marks

Using the example of Fast Eddies, compare and contrast the complementary perspectives and objectives of the franchisor versus the franchisee. 15 Marks