When the first band Discovery, opened January 2, 1990, was immediately popular, Chairman Jim Jorgensen and his small team decided to open more stores quickly in the hope that those who will be first to own a business. They decided to use franchising as a way to expand, as it will allow the company to expand rapidly to finance its growth, and secure and dedicated management. However, the company was not ready to franchise, as there was no clear support for the market size of each store. Jorgensen admitted that there were other questions to be answered as well: If all stores of the same size? If Discovery Zone also have some company-owned stores? How to change the nature of competition franchise in this new emerging market? At the time of the case, just three weeks after the company was operating, the principles of thinking about these issues and what they should do next. "Hide
by Thomas Hellmann, Marla Blow, Blair Boardman Source: Stanford Graduate School of Business 16 pages. Publication Date: January 18, 1999. Prod. #: SM56-PDF-ENG
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