You are convinced that purchasing a franchise is your method for becoming a small business owner. You are presented with two possible franchise operations. In a short paper, discuss the merits and potential drawbacks of each of these franchises. Which franchise would you invest in, and why?
Snip ‘N Clip (SNC Franchise Corporation):
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Get Help Now!This franchisor began business in 1958 and started franchising in 1985. Its business is providing all kinds of hair procedures. There are 84 locations throughout the United States, 43 of which are owned by franchisees. The initial franchise fee is $10,000, and total investment ranges from $50,950 to $58,450. The company doesn’t offer financing.
Smoothie King:
This smoothie company finished on top of the juice bar category in Entrepreneurmagazine’s 2007 Franchise 500 list (it finished 91 overall). Smoothie King began franchising in 1988, selling healthy snacks in Covington, Louisiana. There were 437 independent franchises in 2006. The franchise fee is $25,000, the royalty fee is 6 percent, and the start-up costs range from $121,000 to $250,000. The company offers financing for the franchise fee, start-up costs, equipment, and inventory.
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