Kyle Oldread Case Summary

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Hi, my name is Kyle Oldread, I am the CEO of the IDC franchise, this is my manager sarah white and our accountant chase. Franchises are very successful businesses with relatively low startup costs. Franchises have a 90% success rate because they receive help from the franchisee. The franchisee trains the employees about the company policies, rules and regulations that need to be followed. 97% of all franchises stay in business, partially due to the franchisee helping the business get up on its feet before the store is opened. And 86% of them keep the same owner over 5 years. I started this franchise in Charleston, SC and was amazed by the success of my business. The Charleston area is a very popular tourist site, with a dense customer base.…show more content…
In the first six months we have made a 130,000 dollar profit, with plans to reduce expenses by 10,000 dollars by next year. We would like to start a master franchise and open six more franchises within our regional area. By opening six more stores we will present ourselves to thousands of more customers, this will promote a stronger customer base and build more support for our franchise in our area. By starting up the franchises ourselves, we are eliminating the risk of competing franchises taking business away from our own stores. The total cost of opening six more stores will be 800,000 dollars. We want to put the 130,000 we have made so far into this and are hoping to receive 670,000 dollars from investors in the form of a term bond that matures at a 20% single gain due in three years. With our quick and steady profits you can rest assured that you are investing your money in reliable company. With a total of seven franchises our sales will increase by approximately 10%, with an expected annual profit close to two million

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