1. If you were to consider a franchise such as McDonald’s, Burger King, or Starbucks, what would you need to know?
As a full time student, employee and parent, I would truly contemplate opening a franchise such as Starbucks with the notion that all of the coffee that I buy would be a personal investment into my own business. So in order to open up my very own Starbucks, there are a couple of things I would need to know. I would need to evaluate the franchise and all of its offerings to the franchisee. In evaluating the franchise, I would need to ascertain the viability of the brand product, opportunities in the local market, and financial obligations. For example, Starbucks has historically had a solid brand reputation for great coffee, eateries and atmosphere. They’ve also financially remained strong even during the recession. Some franchisors, such as Starbucks, offer as a benefit to the franchisee both “management and marketing assistance”. Starbucks would offer training for the franchisee on how to manage the operation side of the business, such as hiring, marketing, location and promotion of the franchise. Even though the franchisee is offered management assistance, sometimes it may become too rigid and has a “way of becoming managerial orders, directives, and limitations.” Some franchises require a financial contribution. One item for consideration is the start-up costs of the franchise and if there would be any financing options. Another item for consideration is the percentage the franchisee would have to give to the franchisor in terms of royalties. The final item to consider for my franchise is the opportunities in the local market for a coffee house. Many times, you will see a Starbucks too closely located to each other. Such competition for the same brand product doesn’t allow for profit growth.
2. Develop a business plan, and justify each area in your plan.
A business plan is defined as “a detailed written statement that describes the...
Please join StudyMode to read the full document