9.3 – Final Project: Establishment of a Franchise Operation

Smiling woman with her arms folded.The Business is Growing
Five years after your initial opening of the restaurant you now have four locations up and running. Both you and Sally are glad to have purchased a new property to start the restaurant since you were able to move into a new building and equip it with a modern kitchen and dining room equipment that could accommodate the original requirements under the business plan. The new site has become the number one destination for vacationers coming to Florida, as well as, a repeat of the local population. A signature dish at the restaurant (served as the Grand Finale to the glorious main courses responsible for winning the two Gold Stars) is a specially formulated dessert. The dish is so popular many customers have requested extras to take home. A substantial number of patrons have asked if the dessert would ever be sold separately in markets.

As a part of your long-range marketing plan, you invested in the purchase of the national property locations of the now bankrupt “Sahara Desert Dish” franchise properties. You approach Sally and tell her that you think it’s time to go nationwide with our patented dessert brand “Brain Freeze.” You point out that the company has amassed a healthy portfolio of investments and cash on hand. The restaurant’s dessert menu has a strong sales position in overall restaurant sales. You point out to Sally that her Food Channel show is flying high in the weekly ratings as one of the most watched cooking shows. Sally interrupts you saying, “I don’t cook; I Create.” “Of course,” you reply. You then remind Sally that part of our portfolio includes the Sahara Desert Dish property purchased in anticipation of this day. The properties are all in upscale locations that support the thematic profile that you built the holdings on. You look her straight in the eye and say “It’s now or never…we need to get that franchise Division going.” Sally looks a little taken aback and then questions if the operation will interfere with her obtaining the third Gold Star. You reply, “If Wolfgang Puck can open up gourmet pizza shops, that’s the only incentive we need to startup our franchise operations.” 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 menu’s and food handling processes.”