Write a double-spaced persuasive report for decision and implementation.
After 15 years in the corporate world, you are ready to strike on your own. Rather than building a business from the ground up, however, you think that buying a franchise is a better idea. Unfortunately, some of the most lucrative franchise opportunities, such as the major fast-food chains (Papa Johns’ Pizza http://www.papajohns.com), require significant start-up costs – some more than a half million dollars. Fortunately, you have met several potential investors who seem willing to help you get started in exchange for a share of ownership. Between your own savings and money from these investors, you estimate that you can raise from $350,000 to $600,000, depending on how much ownership share you want to concede to the investors.
You have worked in several functional areas already, including sales and manufacturing, so you have a fairly well-rounded business resume. You are open to this type of business, as long as it provides the opportunity to grow; you do not want to be so tied down to the first operation that you cannot turn it over to a hired manager and expand into another market.
Your task: To convene a formal meeting with the investor group, you need to first draft a report that outlines the types of franchise opportunities you would like to pursue. Write a brief report, identifying Papa Johns’ Pizza that you would like to explore further (based on your own personal interests and the criteria already identified.) Identify the nature of the business, the financial requirements, the level of support the company provides, and a brief statement of why you could run such a business successfully (make up any details you need). Be sure to carefully review the information you find about Papa Johns’ franchise company to make sure you qualify for it.
Find the following information (add additional info as needed)
Nature of business?
How long has this franchise been established?
Total number of franchises?
What’s the upfront cost going to be? (Immediate out of pocket costs)
What other fees should you plan on? (Leasing property or equipment from the franchisor)
What type of regional protection is there? (Do you have any guarantees that the franchisor is not going to sell other franchises or open up its own outlets in your geographic area? If so, how long are those guarantees good for?)
How many franchises fail in a year?
How many open in a year?
How do you get out the deal, if necessary? (Would the company charge you something to sell your franchise or restrict your ability to pull out of the business?)
ALSO, include 3 published or internet sources as works cited.
Franchise research (1 page)
Executive summary (1 page)
Body (4 pages)
Conclusions and recommendations (2 pages)