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Franchise Accounting: a Case Study of Mr. Puff*

CASE STUDY, FINANCIAL MANAGEMENT
ET Cases - GSMC, 11 Pages

Case Preview

Franchise Accounting: A Case Study of Mr. Puff

 

Baking has been a traditional activity, since ages, people have baked food for consumption and storage. It holds an important place in the food processing industry. Bakery products are becoming hot favourite these days due to increased nutrient value, easy availability and reasonable price. Some factors that contribute to this significant growth in the trajectory of bakery industry are ever increasing population and foreign influence. An increasing number of working women can also be a factor as they have started choosing easier options for snacks and quick bites rather than traditional cooking, creating fluctuating eating habits among people. Today, it’s easy to find a young lad returning from his tuition classes and a young man aged 40 returning from office at a Bakery having a puff or pastry.Demanding consumers have motivated traditional bakers to experiment with newer healthier options of baking. It has also served as a force to bakers to come out with a whole new platter of baked products....................

Teaching Note Preview

Franchise Accounting: A Case Study of Mr. Puff

 

Case Synopsis

The case study depicts global and Indian bakery industry scenario creating a background to understand the operations and growth of Shree Gandhi Bakery established in 1950 by Shri. Dholandas Thadani (Dholandas). It narrates the changes that occurred during 65 years of its establishment. And its transition from Shree Gandhi Bakery to Mitesh Food Products Pvt. Ltd. and the brand Mr. Puff. The case gives information about the different products offered by the firm and includes the description of the operations of Mr. Puff. It also explains the models of franchising used by the firm.

Pedagogical Objectives

  • • To understand the model of franchise
  • • To discuss the various issues faced in franchise operations
  • • To discuss and debate on revenue recognition models used in franchises

 

Note: Even though the pedagogical objectives are based for teaching Management Accounting, the case study can be equally used in classroom to discuss issues like values in family business, transition in ways of management, difficulties in transition from being run by family members to professionalization of business, challenges in sharing the profit with franchise owners, keeping the brand name alive, and so on.

Case Positioning and Setting

This case study can be used in MBA, Executive MBA or PGDM Programmes, for the following courses:

  • • Management Accounting: To understand concepts such as Revenue Recognition, Accounting of Franchises, etc.
  • • Strategic Management: To understand the concepts scuh as Profit Sharing, Business Expansion, etc.
  • • Family Business and Entrepreneurship: To understand concepts such as Family Owned Business,Building Brand Name, etc.

Assignment Questions

  • 1. How do you understand the model of franchise?
  • 2. Is franchising a viable option for growth of business? What are the strengths and weaknesses of Mr. Puff ’s franchise model.
  • 3. What challenges do you perceive Mr. Puff will have in keeping its franchises?
  • 4. ....................

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$4.57
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Product code: FIN-1-0023, FIN-1-0023A

Abstract

This case study discusses the franchise model of Mr. Puff (Mitesh Food Products Pvt. Ltd.) which was established in 1950, then known as Shree Gandhi Bakers founded by Shri Dholandas Thadani (Dholandas). They were the pioneers of bread cutting process (i.e. separating the loaf into slices) in Vadodara, Gujarat.

This case study enables the participants to understand the model of franchising, identify and further investigate on the models that would bring in larger revenues to the business. More so, the case would give an insight on the difficulties faced in the franchise models as shown in the pedagogical objectives.With due expansion plans, Mr. Puff would want to improve its franchise models, particularly franchise accounting. Franchises have special accounting problems and hence the case study would help the participants to identify and provide alternatives to the problems that have been identified. These problems ordinarily deal with the recognition of revenue. The case study would examine all of the aspects of franchisee accounting. It aims to instil discussions that may rise to future scope of studies, alternative franchise models and their accounting techniques.



Pedagogical Objectives

  • To understand the model of franchise.
  • To discuss the issues faced in franchise operations.
  • To discuss and debate on the revenue recognition models used in franchise.

Case Positioning And Setting
This case study can be used in MBA, Executive MBA or PGDM Programmes, for the following courses.

  • Management Accounting: To understand concepts such as Revenue Recognition, Accounting of Franchises, etc.
  • Strategic Management: To understand the concepts such as Profit Sharing, Business Expansion, etc.
  • Family Business and Entrepreneurship: To understand concepts such as Family Owned Business, Building Brand Name, etc.


* GSMC 2016, IIM Raipur

This Case Pack Includes:
- Abstract
- Case Study
- Teaching Note (**ONLY for Academicians)
$4.57
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