• Review the “Discussion Topic Expectations and Grading Rubric” information in Week 1 and/or the syllabus. Your initial post in this forum (Post 1) should be
made between Monday 12:01 AM Wednesday 11:59 PM. Your follow-up post in this forum (Post 2) should be made by 11:59 PM Thursday. Please identify your submission as
Post 1 or Post 2 in the subject line.
Post 1
Select one of the top 25 franchises at the following website: https://www.franchise.com/top-25-franchises and provide the following:
1. The name of the franchise and a brief introduction of the business.
2. Discuss what the franchisor offers to help a franchisee be successful.
3. Provide the total investment required to own and operate the franchise and calculate the cost of financing. If a range is given, provide the range and
calculate the average total investment.
Assume you will finance the cost of the total investment (or average total investment) and present the following scenarios:
4. Assume a 5 year loan period at 5% interest rate per year and provide the following:
1.
i. Total Amount Borrowed
ii. Monthly payment.
iii. Total interest cost for the life of the loan.
iv. Total payments for the life of the loan.
5. Assume a 10 year loan period at 6% interest rate per year and provide the following:
1.
i. Total Amount Borrowed
ii. Monthly payment.
iii. Total interest cost for the life of the loan.
iv. Total payments for the life of the loan.
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. Please use
the fixed rate mortgage option and assume “Home Price” is the total or average investment and the “Down Payment” is 0% or $0.
Based on information you have compiled for your selected franchise, do you believe the franchise is a worthy investment? Why or why not? Which financing option would
you select and why?
Post 2 – Respond to ONE other student post
For this discussion, review the submissions your student peers made in Post 1.
Briefly summarize your fellow student’s selected franchise information and provide your opinion on the following:
6. Do you agree or disagree with your fellow student’s conclusion on the worthiness of the franchise investment they selected and the financing option preferred?
Why or why not?
