Which economic model is more appealing for Karen, being a franchisee or an area developer? Calculate the net present value of each strategy’s cash flow streams.

Topic: Case Study

Material 1 is the case.
(1) Summary of the case.
(2) Way forward.
(3) Analyse Scenario 1 (area) and Scenario 2 (franchisee). write separate analyses for each scenario
(4) Conclusion and recommendation
Questions to consider through the analysis:
(a) Tradeoffs and other considerations are expressed in the last paragraph before the Conclusion section on page 11.
(b) Assess case as a pattern in entrepreneurship using the ten-point framework in Material 2.
(c) What are some of the pros and cons of being a franchisee?
(d) What are some of the pros and cons of being an area developer in a franchisee system?
(e) Should Karen retain the Manhattan franchise locations for her own portfolio or work with the Robertson – Gladstone team? Why?
(f) Which economic model is more appealing for Karen, being a franchisee or an area developer? Calculate the net present value of each strategy’s cash flow streams. (include exhibits/tables per option/scenario showing inputs, assumptions, projections, and NPV).

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Which economic model is more appealing for Karen, being a franchisee or an area developer? Calculate the net present value of each strategy’s cash flow streams.
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