UOL Franchiser Business concepts Paper

Description

Select a Company Franchise of your choice. For example, Chick-fil-A, and provide/research (make sure your sources are reliable/accurate) the following information:

The name of the franchise and a brief description of the business.
Discuss what the franchisor offers to help a franchisee be successful.
Provide the franchise fee and the total cost/investment required to own and operate the franchise (itemize a list of cost/investment). Calculate the cost of financing. If a range is given, provide the range and calculate the average of the range as the total investment. Be very careful of the information you get from websites and read it very thoroughly. For example, Allstate isn’t a franchise.
Assume you will finance the cost of the total investment (or average total investment) and present the following scenarios:

Assume a 5-year loan period at 5% interest rate per year and provide the following:
- Amount borrowed
- Monthly payment
- Total interest cost for the life of the loan
- Total of payments for the life of the loan (not number of payments)
Assume a 10-year loan period at 6% interest rate per year and provide the following:
- Amount borrowed
- Monthly payment
- Total interest cost for the life of the loan
- Total of payments for the life of the loan (not number

Note: You can use online calculators for the bulk of the math above. There is a good set of online financial calculators at http://tcalc.timevalue.com (Links to an external site.). Please use the fixed rate mortgage option (Links to an external site.) and assume Home Price is the total or average investment and the Down Payment is 0% or $0.

Based on the information you have compiled for your selected franchise, do you believe the franchise is a worthy investment? Why or why not?
Compare the two loan types, select the option of your choice and explain your choice (why?)

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