Final Recommendation on Subway Franchise Opportunity
Not what you're looking for?
Develop a final recommendation on Subway franchise opportunity. The recommendation should include the following:
- An executive summary
- A decision objective regarding selection of franchise opportunity
- Forecasts of franchise profits and cash flows(Included in attached document)
- An estimated internal rate of return on investment
- An investment decision recommendation
The attached Subway Franchise Opportunity document has information needed to make recommendation.
Purchase this Solution
Solution Summary
The final recommendations on subway franchise opportunities are examined. The investment decision recommendations are determined.
Solution Preview
Executive Summary
An opportunity to invest in Subway is offered by this company in form of franchise and for accepting or rejecting it, an investor should consider investment objectives. It is quite suitable for risk taker and risk adverse investors as it is risky in short run and profitable in long run. In addition, profit and cash flow projection of Subway franchise also seems to be positive in next five years from investment. IRR of this investment option also indicates potential growth. An investor should consider other aspects that beside profitability.
Objectives to Investment in Subway Franchise
The main objective behind to make investment in Subway franchise is to achieve long-term profit and to create value accordingly. The long run perspective will be considered to determine feasibility of this business opportunity. In this way, selection of Subway franchise as an investment option will be based over the profit, it is expected to generate on the basis of its current profit statement. In order to analyze this investment option in terms of above objective, initial cost with their opportunity price will be also compared to its expected profits. This will help to determine feasibility of this business in offering profits and creating values in long run over the investment (Fabozzi & CFA, 2001). Profit and value both objectives will include quantitative and qualitative factors of a business respectively, ...
Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Motivation
This tests some key elements of major motivation theories.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.