Cow’s London Essay Sample
James and Serena Udderlie are interested in opening a Cow’s London franchise in London. Ontario. In order to make so. the Udderlie’s must fix a loan application to the Confederation Bank of Canada.
The Udderlie’s are both good educated and employable. James completed his Master in business in 1983 and Serena has received her Bachelor of Arts. Bachelor of Education and a Maestro of Education. In add-on to these grades. they both claim to hold an entrepreneurial spirit. but they would besides wish flexibleness in their investing. They would wish to go on with their current employment and would wish to keep a good household modus operandi. They view the thought to franchise as an investing instead than a concern venture.
The bank is bespeaking for concrete information before make up one’s minding on whether or non a loan is a good thought. They need to be assured that they can put in the Udderlie’s thought and that the Udderlie’s will be able to pay them back. They have asked for pro forma income statements and balance sheets so that they are able to do an informed determination. The Udderlie’s need assist fixing for a meeting so that they may have funding from Confederation Bank. These demands include an rating of the overall thought. the readying of the pro forma statements. what collateral options were available and to place any possible issues that the bank may hold. The Udderlie’s have besides already done some widespread market research. James has a background in the country and can decently analyse market research. James had concluded that the mark market was comprised of chiefly employed persons. so a high monetary value point was executable. The franchiser has good developed shop design criterions and specifications. James feels that the franchiser will offer a batch of support and will provides costs to help with doing a determination. The location meets the demands for the mark market and is besides a high traffic country.
The gross revenues prognosiss that are provided ( see attached ) are based on information from the franchisor and exhibits attached to the instance survey. Many of the costs are variable and dependent on the sum of gross revenues. Through reading the instance survey. we find that there will be no revenue enhancement disbursal in the first operating twelvemonth and the loss with carry forward for the following twelvemonth. The Cow’s franchise may non me the best investing for the Udderlie’s. Both James and Serena do non desire to put a batch of clip in a concern venture. which is shown by the fact that they are already seeking to engage a full-time investing director. The Udderlie’s will necessitate to put a batch of clip into the franchise if they want it so be successful. and in order to have the money they have invested back. it may take a few old ages. There are many other puting options available as opposed to acquiring a loan. such as little concern grants.
