Design a comprehensive Financial Plan by solving the Following Case Study. Founded in 1980, Travel Agents International, Inc., began as a regional travel agent in the heat of Florida. The company targeted a "youthful" retired market of affluent people. Most of these retirees had relocated to Florida from northern states with ample retirement incomes and the urge to travel. Looking for unusual tours and recreation opportunities, they represented a huge market of anxious travel customers. Most also visited their previous homes or went north to see family members each year. Travel Agents International found a profitable niche among retired residents, and within two years, the company had opened several offices in resort retirement communities. With the growth in franchising, TAI recognized in 1982 and began offering franchise offices, each networked together for an integrated travel system. The company has retained its headquarters business Seminole, Florida, but now has nearly 300 franchise locations. Potential franchise owners are screened on application to ensure they have sufficient resources and a career interest in developing a personal service business in travel. The parent company earned $67,000 net profit on approximately $ 5 million in gross sales in 1988 and expected a similar financial profile into the 1990s. this sales figure represented income from franchisees, not travel sales or services. The company assures potential franchise owners that this income is adequate to provide franchise services, yet represents a low profit because money is reinvested in services for new franchise owners. The company offers franchises at a flat fee of $39500 for a complete business package that includes training and help with initial licensing. Depending on the location of the business, the owner will have to spend between $40200 and $ 87600 to furnish an office and acquire reservations linkage through travel networks. The owner must arrange his or her own lease, or buy a location, and if the franchise is successful, the company offers "area" or master franchise options. Franchise royalty fees are expressed in a fixed monthly charge of $ 785 with a fixed advertising charge of $ 335 per month. Prospective franchise owns are interviewed at their own expense, usually in Florida and the company reserves the right to decline an offer to anyone they feel unsuitable for the travel business. Applications must also provide a full disclosure of their financial position and demonstrate the ability to meet franchise costs plus projected operating costs for the first year. Franchisees buy travel supplies and subscribe to catalogs from the parent company. CASE QUESTION 1. Generate a List of Questions you would ask as a prospective franchise owner and why these questions are important. 2. Based on Case information construct an investment plan which proposes would it be a good investment? Why or Why not? Design a comprehensive Financial Plan by solving the Following Case Study. Founded in 1980, Travel Agents International, Inc., began as a regional travel agent in the heat of Florida. The company targeted a "youthful" retired market of affluent people. Most of these retirees had relocated to Florida from northern states with ample retirement incomes and the urge to travel. Looking for unusual tours and recreation opportunities, they represented a huge market of anxious travel customers. Most also visited their previous homes or went north to see family members each year. Travel Agents International found a profitable niche among retired residents, and within two years, the company had opened several offices in resort retirement communities. With the growth in franchising, TAI recognized in 1982 and began offering franchise offices, each networked together for an integrated travel system. The company has retained its headquarters business Seminole, Florida, but now has nearly 300 franchise locations. Potential franchise owners are screened on application to ensure they have sufficient resources and a career interest in developing a personal service business in travel. The parent company earned $67,000 net profit on approximately $ 5 million in gross sales in 1988 and expected a similar financial profile into the 1990s. this sales figure represented income from franchisees, not travel sales or services. The company assures potential franchise owners that this income is adequate to provide franchise services, yet represents a low profit because money is reinvested in services for new franchise owners. The company offers franchises at a flat fee of $39500 for a complete business package that includes training and help with initial licensing. Depending on the location of the business, the owner will have to spend between $40200 and $ 87600 to furnish an office and acquire reservations linkage through travel networks. The owner must arrange his or her own lease, or buy a location, and if the franchise is successful, the company offers "area" or master franchise options. Franchise royalty fees are expressed in a fixed monthly charge of $ 785 with a fixed advertising charge of $ 335 per month. Prospective franchise owns are interviewed at their own expense, usually in Florida and the company reserves the right to decline an offer to anyone they feel unsuitable for the travel business. Applications must also provide a full disclosure of their financial position and demonstrate the ability to meet franchise costs plus projected operating costs for the first year. Franchisees buy travel supplies and subscribe to catalogs from the parent company. CASE QUESTION 1. Generate a List of Questions you would ask as a prospective franchise owner and why these questions are important. 2. Based on Case information construct an investment plan which proposes would it be a good investment? Why or Why not