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Economic Outcome Analysis

Economic Outcome Analysis
Project description
Economic Outcome Analysis

Based on the attached small business concept, students will evaluate the economic potential using the franchise model.


A successful local business owner is interested in expanding and wants to determine whether to franchise or to open additional locations.

Required Elements to include in the Case Study:

Using the information provided by the instructor, conduct an economic outcome analysis (template provided by the instructor in assignments conference).
Using the economic outcome analysis you develop, all course content, and any necessary outside research, you will evaluate the franchising option and explain why or why not the business owner should franchise. You must provide strong support for your recommendation.
Required Formatting of Case Study:

This paper should be double-spaced, 12-point font, and between five and six pages in length excluding the title page and reference page;
Title page with your name, the course name, the date, and the instructor’s name;
Use APA formatting for in-text citations and reference page. You are expected to paraphrase and not use quotes.


To Franchise or Not to Franchise…that is the question!

Andy’s Parties is a new and growing company offering theme parties at their Party Center, clients’ homes and approved venues. They’ve been in business since 2004 and recently begin considering expansion options through opening more company-owned locations or offering a franchise program. They hope to expand throughout the Country and consider International expansion as well. Here is how they describe their business:

We do it all…from set-up to clean-up! Andy’s Parties offers full-service, themed children’s parties and enrichment classes.

Our great theme parties include everything for a great party:

? Great Games and Activities
? Themed Craft Project
? Themed Party Favors
? Themed Paper Products
? Piñatas and Invitations Included With Most Theme Parties
? All food, drinks, and supplies
? Set-up, clean-up, and more – all led by our fun and energetic staff!

We also offer great enrichment classes, including the Themed Kaleidoscope Adventures Program (ages 3-6), Andy’s Book Club (ages 3-10), and Mommy & Me Classes (0-20 months) along with classes from third party vendors such as Kinder Music and Abrakadoodle. We make sure that our clients do not worry about anything – we do it all so you don’t have to!

Reasons to have an Andy’s Party:

? We do everything so you don’t have to!
? Our prices are very competitive with other party services and venues.
? We have a party at your home – that alleviates any concerns about the chaos and safety hazards posed by larger venues with many strangers.
? We have great experience with kids’ party services and also larger event planning.
? We love our jobs and will ensure a fun party for your children and their friends!

This is a simple concept with relatively few components. They are primarily looking for women who want to work part-time from home and grow a business into a full-time, fixed location. Not only do managers/franchisees need training but also they have to train their part-time party staff which consists primarily of high school students.

Here is a snapshot of their current financials for the past 12 months:

Sales 650 parties at $385 average per party… $275,000
Labor High school staff to work parties …………….$100,000
Party Supplies Cupcakes, costumes, toys………… $30,000
Advertising Internet ads, Direct Mail ……………………$45,000
Miscellaneous Gas, phone, computer, office supplies $20,000

Gross Profit Before taxes, owners draw…………… $80,000
Based on your Economic Outcome Analysis, should Andy expand through opening more company stores or developing a franchise program? Be sure to fully support your answers from course content, outside research and solid references.

**( Please do a better job this time, as I was not too impressed with my last two orders. I had to make a lot of grammar corrections and changes. Thank you.)


Category: Uncategorized

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