Shareholders Equity Evaluation Of Personal Finances

Stockholder’s Equity A. Initial Financial Start Opening a franchise requires extensive financial planning through the evaluation of personal finances compared to vital start-up costs. No two franchises incur the same start-up costs, so having a substantial amount of capital available from the beginning is crucial. Franchise costs stem from the desire to open a franchise and the associated target industry. Franchises within the fast food segmentation require food inventory while franchises in the pet care segmentation require pet supply inventory. As a result, franchise entry fees range anywhere from $5,000 to over $5 million. Besides entry fees, franchise owners are required to pay administrative fees for legal and accounting services to†¦show more content†¦Sam Walton leased a location for his Ben Franklin Variety Store in Newport, Arkansas after securing a $20,000 loan from his father-in-law. With Walton’s keen business strategies and ingenuity, his first franchise achieved great success. People who recognized su ccess tried to seize the opportunity to take the franchise off Walton’s hands, with one such individual being his property landlord. After declining his landlord’s proposal; the property lease was withdrawn, and the Ben Franklin Variety Store closed its doors for good. However, the doors on Walton’s dream were still wide open, and he was ready for a new opportunity (Herman 2016) (Sam Walton-Bargain Basement Billionaire 2016) (The Rise of Walmart 2016) The following two decades were best described as the â€Å"baby boom† of franchising. It was the beginning of the Interstate Highway System during President Eisenhower’s term in office that helped increase the interest in franchising. Franchises we all know and love today; like Wendy’s, Dunkin Donuts, Holiday Inn, Dairy Queen, and HR all got their start during the 50s. Walton seized the opportunity to take on a new franchise with the leftover profits from the Ben Franklin Variety Store to open the Walton’s Five Dime in Bentonville, Arkansas. After marketing the new franchise as individualistic commodity along with his other idealistic methods, the store’s success was imminent. The remainder