Case Study – Michelin Award Restaurant Going Franchising

As a part of the Restaurant’s long-range marketing plan, you invested in the purchase of national property locations of the now-bankrupted “Sahara Desert Dish” franchise properties. Based on your Discussion and Strategic Plan results, you both agree that it’s time to go nationwide with the company’s patented dessert brand, “Brain Freeze.” Examination of the company’s financial position, you now have a healthy portfolio of investments, product revenue, and cash on hand.

The Restaurant’s dessert menu has produced an exceptional revenue stream. These products can easily be marketed as a standalone venture. The company portfolio includes the Sahara Desert Dish property purchased in anticipation of this day. The properties are all in upscale locations that easily support the Restaurant’s thematic Desert menu.

Looking Sally straight in the eye, you state, “It’s now or never, we need to get that Franchise Division going.” Sally was taken aback by the use of her statement, inquiries whether the operation will interfere with her entering the third Gold Star competition. You reply, “If Wolfgang Puck can open up gourmet pizza shops, that’s the only incentive we need to startup our Desert franchise operation.” Sally fires back, “You’re the one studying business law! Why did it take you so long to bring it up?” Sally continues, “Start working on the documents, and I’ll get started on creating the franchise operations menu and food handling processes.”

In your Discussion, you covered all of the eventualities companies face in expansion periods. The initial investment in the bankrupt properties has positioned the growth in a prime position. The commercial paper securing the properties is almost paid off. Converting the properties into a new enterprise will reduce the carrying cost and increase the current revenue streams by a minimum of 20%. Franchise Licensing Fees and property leasing rentals will initially bump revenue by approximately 35%.

To start your review, first, research the requirements required to establish a legally recognized Franchise operation. Using the Strategic Business Plan and the other resources you now have, complete the Franchise feasibility information and determine what steps are needed to enter this highly competitive area. Review the resources and respond to the Assignment.

Your Assignment
To fully understand the nature of Franchises review the following Documents:

Business Growth document and the new Strategic Plan
Respond to the questions provided in the
Checklist,
Test for Franchising Feasibility,
Review Form 505, and
Form 506.
Upload your responses. Use all available information from the case studies, the text readings, and all information available, and any other research. Where response requires information not explicitly presented, use your vision to fill in the gaps and answer the questions. Information not established in the case study can be found in the franchise information. Use the documents in your assessment of your company’s readiness to take the next steps to success. Leave no blanks, and do not submit short answers that do not explain the basis for your response.

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