Question

If you were opening a restaurant in downtown Detroit would you prefer a franchise or a...

If you were opening a restaurant in downtown Detroit would you prefer a franchise or a totally new restaurant? Why?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Sol:

Franchising is like a strategy for the expansion of the business where a franchisor shall licence its know-how brand name, etc.

If a new restaurant needs to be opened in downtown Detroit i would prefer a franchise since it could help us to expand the existing business and no further extra promotion is required to win customers loyalty.

And moreover if we prefer franchise it would just change the ownership and would neither change the business nor customers support.

Moreover some extra effort is needed to expand the business horizontally.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
300 words If you are considering opening a new pizza restaurant in your community, what would...
300 words If you are considering opening a new pizza restaurant in your community, what would be the threat of new entrants? How would you evaluate Porter’s other forces for this industry? Explain.
assume you own a restaurant. What inventory costing method would you prefer, and why? Also, include...
assume you own a restaurant. What inventory costing method would you prefer, and why? Also, include a discussion as to whether the costing method you would use for your accounting records would follow the actual flow of your inventory.
if you were a bacterium explain why would you prefer gene transfer over spontaneous mutation for...
if you were a bacterium explain why would you prefer gene transfer over spontaneous mutation for acquiring new gentic traits.
On January 1, 2015 FranchisingRUs purchased a Souper Duper restaurant franchise for $10 million which allows...
On January 1, 2015 FranchisingRUs purchased a Souper Duper restaurant franchise for $10 million which allows FranchisingRUs to operate a Souper Duper restaurant for 10 years, and recorded the franchise fee as an intangible asset. FranchisingRUs anticipates annual cash flows on the restaurant of $2.4 million and will amortize the franchise fee using the straight-line method (the franchise has no value at the end of the 10 year term). In 2020 the coronavirus hit. FranchisingRUs attempted to keep the restaurant...
2. You are considering opening another restaurant in the TexasBurgers chain. The new restaurant will have...
2. You are considering opening another restaurant in the TexasBurgers chain. The new restaurant will have annual revenue of $317,400 and operating expenses of $158,700. The annual depreciation and amortization for the assets used in the restaurant will equal $52,900. An annual capital expenditure of $11,000 will be required to offset wear-and-tear on the assets used in the restaurant, but no additions to working capital will be required. The marginal tax rate will be 40 percent. Calculate the incremental annual...
If you were an import-competing producer in a growing market, which trade instrument would you prefer...
If you were an import-competing producer in a growing market, which trade instrument would you prefer - a tariff, an import quota, or a subsidy? Why?
If you were investing in a bond, would you prefer to invest in a U.S. Treasury...
If you were investing in a bond, would you prefer to invest in a U.S. Treasury bond, an AAA rated corporate bond or a junk bond?
Please show all work with equations, no excel. Thank you. The Detroit MicroBrews Corp. is opening...
Please show all work with equations, no excel. Thank you. The Detroit MicroBrews Corp. is opening a new production facility. Two types of stills are being considered and the cost estimates in the table below have been developed. Using ROR analysis, determine which alternative should be selected (if any). The MARR is 15%. MASHER SQUEEZER Life, Years 4 6 First Cost $10,000 $15,000 Salvage Value 0 2,000 Maintenance & Operating Cost (Year 1) 800 1,000 Maintenance & Operating Cost arithmetic...
Pretend you are opening a new business. What would this business be? Tell us why you...
Pretend you are opening a new business. What would this business be? Tell us why you chose this business. Would it be a sole proprietorship or would you set up a partnership or maybe a corporation? Give me a reason why you chose this structure.
Aji Fatou has the option of leasing out this space instead of opening a restaurant. The...
Aji Fatou has the option of leasing out this space instead of opening a restaurant. The market rent for his property is $600. Explain how you would interpret his profits under Perfect Competition and Monopoly in the restaurant business in  relation to the rents she would earn from leasing out his property. In your answer, identify Aji Fatou’s explicit and implicit costs and accounting profits from the restaurant business in each market
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT