Feasibility Study: Mang Inasal

Topics: Profit, Marketing, Economics Pages: 1 (362 words) Published: August 21, 2012
A franchise feasibility study will analyze and prioritiz in recognizing the strengths and weaknesses of the underlying business model of Mang Inasal. In the new business of franchising, it is critical to develop evaluation, documentation, training, mentoring and consulting skills, all within an ongoing, long term franchise relationship. The study will conduct analysis of opportunities and trends in franchising Mang Inasal to be able forecast the profit of the business. Once the market analysis are done , it would be better to developed realistic financial status of the business. These projections will help to determine the financial feasibility of the venture. Starting up a business in franchising requires to track the record of the existing business, and that is the first step in business planning. After evaluating the business, the study should consider how much is the starting capital to develop the franchise concept. The franchise fee of Mang Inasal is P1.1 Million + 12 VAT. It includes tried and tested operation support, use of brand/ trade name, opening marketing support and training support.The franchise term is 7 Years (Renewable) the space requirement is 150 to 200 Sq. Meters. The royalty/service Fee is 5% of Gross Sales, while the advertising Fee is 2% of Gross Sales. The Sources of Financing will be Php 7,000,000. the Corporation will put in P 5,000,000. The remaining will be borrowed from the bank.

The objective of the study is to understand the business concepts of Mang Inasal to be able to forecast the profitability of the business. In conducting the study, there are factors that are need to be considered such as customer satisfaction, industry trends, market area demographics, economic statistics, competition, suitability of your location and the business concept. Identifying those factors will lead to clearly understanding the sales potential of Mang Inasal. Other objective is to highlight the strengths and weaknesses...
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