Total Investement

Select one of the top 25 franchises at the following website:  https://www.franchise.com/top-25-franchises (Links to an external site.)

Links to an external site. and provide the following:    1.The name of the franchise and a brief introduction of the business.   2.Discuss what the franchisor offers to help a franchisee be successful. 3.Provide the total investment required to own and operate the franchise and calculate the cost of financing.  If a range is given, provide the range and calculate the average total investment.

Assume you will finance the cost of the total investment (or average total investment) and present the following scenarios:

Assume a 5 year loan period at 5% interest rate per year and provide the following:  i.Total Amount Borrowed ii.Monthly payment. iii.Total interest cost for the life of the loan. iv.Total payments for the life of the loan.     2. Assume a 10 year loan period at 6% interest rate per year and provide the following:  i.Total Amount Borrowed ii.Monthly payment. iii.Total interest cost for the life of the loan. iv.Total payments for the life of the loan.

Note:  You can use online calculators for the bulk of the math above.  There is a good set of online financial calculators at http://tcalc.timevalue.com (Links to an external site.)Links to an external site..  Please use the fixed rate mortgage option and assume “Home Price” is the total or average investment and the “Down Payment” is 0% or $0.  Based on information you have compiled for your selected franchise, do you believe the franchise is a worthy investment?  Why or why not?  Which financing option would you select and why?