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LET’S READ A BOOK! By: Easton “Don Juan” Lyle and Grant “The Hammer” Nation

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By: Easton “Don J uan” Lyle and Grant “The Hammer” Nation. Let’s read a Book!. Fast food restaurants provide a decent stable income for people who need a stepping stone to bigger and better things in life. - PowerPoint PPT Presentation

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Page 1: Let’s read a Book!

LET’S READ A BOOK!

By: Easton “Don Juan” Lyle and Grant “The Hammer” Nation

Page 2: Let’s read a Book!

Fast food restaurants provide a decent stable income for people who need a stepping stone to bigger and better things in life.

The reason this can occur is fast food restaurants are everywhere, meaning a production of millions of jobs.

Page 3: Let’s read a Book!

The number of fast food restaurants can be attributed to franchises. There are a lot of people with the business skills to run a business, but do not want to take the risk of starting their own company.

A great example of this from the book is General Motors. Since they could not hire enough salesman, they sold franchises to car dealers to earn more revenue.

Page 4: Let’s read a Book!

One of the first companies to implement this franchise system was McDonald’s in the late 1950s. They sold the initial investment as such a low price that usually, the franchise would bring in more money than the companies founders.

Then to insure the chains financial success, McDonald’s started buying the land on which the franchises were on.

Page 5: Let’s read a Book!

Today it cost about 1.5 millions dollars to invest in a Burger King franchise, but theoretically it should not be a problem because there is less risk involved. A new study shows that the franchise route is associated with higher business failure.

A Little Caesars franchise started in 1984 by Dave Feamster gave him the exclusive rights to open a restaurant in Pueblo. In return he had to give 5% of his annual revenues and contribute another 4% to the advertising.

Page 6: Let’s read a Book!

18,000 franchise loans between 1967 and 1979 were guaranteed by the Small Business Administration (SBA) , according to a 1981 study by the General Accounting Office.

10% of those loans ended in default Only 4% of independent businesses received SBA

loans Out of 13 loans to Burger Kings franchises, 11 of

those defaulted Burger King was “experimenting” during this time,

so they did not lose money on the failed businesses. The money came from the government –backed loans.

Page 7: Let’s read a Book!

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