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Icedelights
Essay specific features
Written by:
Joan M
Date added:
May 18, 2013
Level:
University
Grade:
A
No of pages / words:
7 / 1750
Was viewed:
3005 times
Rating of current essay:
Essay content:
Regardless of the timeline, the situation presents a concern with the franchisees ability to raise the amount of capital required to open their first three stores in a timely manner.
• ICEDELIGHTS did not want to be legally bound to the Florida franchise because they felt they might not have sufficient resources to accommodate the franchisees...
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Evaluate the positive and negative features of the business opportunity
Positive features:
• Provides the potential entrepreneurs a business opportunity in a timely manner
o They would be involved in the franchise before they had a lot to lose
• Franchisees believe that they have the skill set to run a food franchise
o The idea also seemed fun and financially rewarding
• The management team at ICEDELIGHTS impressed the franchisees
• The product, systems, and management were standardized by the franchisor
• The franchisees could leverage the ICEDELIGHTS brand, product, training capabilities, and real estate experience once ICEDELIGHTS could provide the support
• Franchisees could obtain rights to the entire state of Florida
Negative features:
• The franchise was new and not yet proven in the industry or the potential market
• It took approximately one year between signing the rights and opening a store
• ICEDELIGHTS could not commit to supporting the franchisees because their resources were at capacity
o They were interested in “slow, quality growth”
• The “homemade” product was actually produced off-site, frozen, and shipped to the locations
• The product, systems, and management were standardized by the franchisor
• The franchisees had no previous experience in the food industry
• A tremendous amount of capital had to be raised to be successful
• The franchisees would have to give up more than 25% of their company to investors
o Investors had stringent requirements for control and repayment
• The market had not been thoroughly researched or understood
o Franchisees were not aware of the potential for this product in Florida
• If ICEDELIGHTS could not provide the necessary support to the franchisees in the future, they would be left with little experience, a need to build a production facility, and a need to research their own locations
• The franchisees would have to sign the agreement before visiting the market and determining the potential for business
3...
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