SECTION A [40 MARKS] Read the article below and answer the quostions that follow. ANYTIME FITNESS FRANCHISE How did Anytime Fitness grow to 3,264 locations in 2016 after only stating the franchise in 2002 ? I almost defes logec in that the fithess space is as compebtive as any market segment in franchising and has been for many years. Many large fithess franchise brands have come and gone during this time frame and certainly, with brands such as SNAP and Planet Fithess, the barriers to entry are significant for a new franchise brand. Anytime Fitness seems to have overcome all of these odds and with 307 new units added in 2015 alone, the brand isnt slowing down at all Anytime Fithess hired Franchise Marketing Syslems to develop processes and inlrastructute needed to facilitale betier recrulment processes and franchise sales models. The business was already successfully recruting fratchisees, but with a growing sales team and larger corporate staH to manage the wave ol new franchisees, it became apparent that systams, procedures and policies needed to be implemented in order to confirm that the presentation was compliant: documentation was being presented franchisees in the appropniate manner and that the sales personnel were making presentations according to corporate policy. Anytime Fitness has struck a chord with franchise investors by hitting some of the key value points in a franchice transaction. Anytime is one of the growing trends of franchisors who use an earnings claim and present impressive financials. Appropriate disciosure and a delailed review of how these financals have been developed aliow this is a significant part of the franchise presentation. Anytime Fitness also presents a simple operating model with a lower initial investment. This combined with great financing relationships with third-party lenders minimiges the cash out of pociet from a potential franchisee and alloss for a lower bamier of entry for new franchise investors. Anytime Fithess has also done a great job with branding, PR and industry exposure both within the finess industry and the franchise industry. The business has been ranked as the top global franchise by the Enlrepreneur Franchise 500 for several consecutive years. The brand has been consistent in promoling the franchise model with a dedicaled, regionalived franchise recruitment lead generation plan. The budgel has been supported by an in-house franchise sales leam with the time and rescurces needed to work with the leads and effectively introduce the brand to new franchise buyers. The last aspect of Anytime's success has been the relevance of the business model for today's market. More and more people are concerned primanily with fime and convenience, they have busy lifestyles and can' wasle time on anything. Anytime fits the market and answers these key demands of today's consumers. The bottom line, the business model is relevant and makes sense to the consumer, so it has made sense to the franchise investor as well. Source: hltesymuw fmsfranchise comlanyime-fitness: franchisel Answer ALL the questions in this section. QUESTION ONE 20 Mark: Based on the case study above, how does owning an Anytime Fitness franchise ditler from starting a fithess business from scratch, and what are some of the advantages and disadvantages of franchising in the fitness industry? QUESTION TWO As a potential Anytime Fitness franchisee, what personal characteristics should you possess to ensure the success of your business? Explain how each characteristic would contribute to the sucoess of your franchise. QUESTION THREE (20 Marks) A farmer wants to start a new business and produce organic vegetables for the local community. To do so, the farmer needs to understand the different factors of production that are necessary for the business to operate successfully. What are the FOUR (4) main factors of production required for the farmer to produce organic vegetables for the local community, and how does each factor contribute to the production process? QUESTION FOUR (20 Marks Consider yourself as an entrepreneur planning to establish a new business. Discuss the factors that can significantly impact your decision-making process when selecting a specific business enterprise. Provide detailed explanations and examples to support your answer. QUESTION FIVE (20 Mark You are a manager at a popular fast-food chain that has been operating in a specific area for many years. Recently, a new fast-food chain has opened up in the same area, offering a similar menu at slightly lower prices. This has caused your sales to decline and you are concerned about the threat of entry as a competitive force. Using the scenario provided, describe the threat of entry as a competitive force and how it is affecting the fast-food chain. What actions can the fast-food chain take to mitigate the threat of entry and remain competitive in the market? Provide at least FIVE (5) strategies and explain how they could be implemented