February 17, 2013
One of the most challenging decisions to make when aiming to own a small business00 is what sort of business is best? " A great way to own your own business is to buy a franchise (Kimmel, 2009). Snap Fitness, is a fast-growing franchisor of compact state-of-the art 24/7 fitness centers around the world. In this daily news the subject to discuss is the cost volume revenue analysis of any fitness center business. A business will use CVP research to analyze existing or new business opportunities to identify a break-even point and potential earnings, including the product sales volume needed to reach a target income (Wiley, 2013).
Problems of a Franchise
You will discover advantages and challenges to nearly every shop. The key is to understand what they are plus the impact they will have on the business before becoming a business proprietor. " The challenges of owning a franchisee often have related to unreasonable objectives - you aren't your own boss, the brand name is your boss. Richman, вЂќ (2008). Brand requirements reach all of the organization, from outfits and how they are put on to what types of coupons the business can and are not able to use. Franchisee inconsistency beats the purpose of a franchise, thus emphasizing the importance of next brand requirements. Franchise contracts may influence locations, vendors, and options of operation. Various franchisors anticipate their franchisees to buy items only from all their approved list of vendors. This limits the flexibleness of a entrepreneur, especially when these suppliers' costs are much bigger, and that cuts into profits. Another thing to watch out for within a franchise product is requirement simply by franchisor to get royalty payments and marketing fees that affect revenue. Still another matter is counting too seriously on the parent or guardian company's companies. You are one of many and the success or failure of your store is very up to you. Know what services are guaranteed from the franchisor and stay...