Subject category:
Entrepreneurship
Published by:
Babson College
Length: 22 minutes
Data source: Field research
Notes: File size 1.56GB. Click for more information.
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Abstract
This supporting video is to accompany the case. The case can be taught alone or in combination with 'Mike Bellobuono'. Mike Bellobuono and his three partners owned Bagel Boys, a seven store Connecticut-based bagel chain. In 1993, Mike and his team were approached by Subway sandwich co-founder Fred DeLuca. Fred offered to partner with Bagel Boys and turn them into a franchised operation. The Bagel Boys team carefully considered the pros and cons of aligning with the sandwich giant - which had recently received some unfavorable publicity regarding their franchisor / franchisee relations - and eventually agreed to form a partnership. Aligning with Fred DeLuca and Peter Buck (Fred's Subway partner) offered Bagel Boys a high-growth vehicle - essential to compete against other industry players such as Bruegger's and Manhattan Bagel. But this raised new concerns because as the company expanded, the difficulty of maintaining uniform operating standards and the likelihood of franchisee problems also increased. With the goal of rapid expansion, the team now needed to address a specific growth plan, including the way they selected franchisees, the company's internal management structure, and franchise support system.
About
Abstract
This supporting video is to accompany the case. The case can be taught alone or in combination with 'Mike Bellobuono'. Mike Bellobuono and his three partners owned Bagel Boys, a seven store Connecticut-based bagel chain. In 1993, Mike and his team were approached by Subway sandwich co-founder Fred DeLuca. Fred offered to partner with Bagel Boys and turn them into a franchised operation. The Bagel Boys team carefully considered the pros and cons of aligning with the sandwich giant - which had recently received some unfavorable publicity regarding their franchisor / franchisee relations - and eventually agreed to form a partnership. Aligning with Fred DeLuca and Peter Buck (Fred's Subway partner) offered Bagel Boys a high-growth vehicle - essential to compete against other industry players such as Bruegger's and Manhattan Bagel. But this raised new concerns because as the company expanded, the difficulty of maintaining uniform operating standards and the likelihood of franchisee problems also increased. With the goal of rapid expansion, the team now needed to address a specific growth plan, including the way they selected franchisees, the company's internal management structure, and franchise support system.