Part of Lesson Plan: Start-up costs, operating costs, and personal expenses in business plan.
Activity Overview / Details
Students discover the difference between owning a franchise and having a start-up company. I start off the discussion by asking how many people would like to own a Taco Bell? Behind me, I’ll have their website flashed on a projection screen. Next, I’ll ask how many people would like to own their own Mexican restaurant?
After much discussion, I’ll ask people what’s the difference between owning a franchise like Taco Bell and owning your own company. Students complete a Quickwrite and share their answers in groups. Next, I’ll break them into four groups. Each group will have a separate question: 1) What are the benefits to owning a Taco Bell (as opposed to a start-up Mexican Restaurant, 2) What are the detriments to owning a Taco Bell (as opposed to a start-up Mexican Restaurant, 3) What are the benefits to owning your own start-up Mexican Restaurant, 4) What are the detriments to owning your own start-up Mexican restaurant? Afterwards, I give each group time to share their answers.
Finally, I’ll provide them with information from a website that lets them know how much it costs to own a franchise like Taco Bell, which is owned by Yum! Brands, Inc., which owns, among other things, Pizza Hut and Long John Silver’s. Students discover that Yum! Brands, Inc., requires people have a net worth of $1 mil with $360,000 liquid cash. I’ll explain that liquid cash means that you can get to it quickly if you have to.
- Taco Bell Franchise Information [ Go to Site ]