Question 6 (10 points) Listen Sarah wants to own her own business as a massage therapist. She is certified and a registered Massage Therapist. After 4 years as an employee of a large clinic in Vancouver, she wants to live in Victoria because Victoria is where she grew up, and where she attended Massage Therapy training. She thought she would start a business from scratch but has recently become aware of a franchise opportunity available for the Greater Victoria region. The franchise is well known in the US and Ontario, Canada. It has a focus on treating athletes, a specific focus of physiotherapy that Sarah has a particular interest in. Sarah would be the first franchisee of the company in British Columbia. The cost to purchase the franchise is $35,000 US and require a royalty of 3% per year. The franchisor supplies business training, help with securing a lease and building the physical location, and provides marketing materials. The current rate for massage therapy in Victoria is $125 per hour. Sarah would have her clinic open 6 days each week, for 7.5 hours each day, taking a 30 min break for lunch, although she estimates she will have only 5 billable hours per day due to cleaning between clients etc. She would close for 2 weeks each year to take a vacation. Her start-up and monthly expenses will be approximately $50,000 per year. Sarah is wondering if it might be a better idea to buy that franchise, rather than start from scratch and operate as an independent massage therapy clinic because she has never worked as a massage therapist in Victoria. a. (4 marks) Describe two advantages & two disadvantages of purchasing the specific franchise for the Greater Victoria area, b. (4 marks) Describe two advantages & two disadvantages of starting her business from scratch and operating independently in the Greater Victoria area, c. (2 marks) A search on Google shows 26 massage therapy clinics listed in the Greater Victoria area. Do you recommend Sarah purchase the franchise or not? Explain why. Question 6 (10 points) Listen Sarah wants to own her own business as a massage therapist. She is certified and a registered Massage Therapist. After 4 years as an employee of a large clinic in Vancouver, she wants to live in Victoria because Victoria is where she grew up, and where she attended Massage Therapy training. She thought she would start a business from scratch but has recently become aware of a franchise opportunity available for the Greater Victoria region. The franchise is well known in the US and Ontario, Canada. It has a focus on treating athletes, a specific focus of physiotherapy that Sarah has a particular interest in. Sarah would be the first franchisee of the company in British Columbia. The cost to purchase the franchise is $35,000 US and require a royalty of 3% per year. The franchisor supplies business training, help with securing a lease and building the physical location, and provides marketing materials. The current rate for massage therapy in Victoria is $125 per hour. Sarah would have her clinic open 6 days each week, for 7.5 hours each day, taking a 30 min break for lunch, although she estimates she will have only 5 billable hours per day due to cleaning between clients etc. She would close for 2 weeks each year to take a vacation. Her start-up and monthly expenses will be approximately $50,000 per year. Sarah is wondering if it might be a better idea to buy that franchise, rather than start from scratch and operate as an independent massage therapy clinic because she has never worked as a massage therapist in Victoria. a. (4 marks) Describe two advantages & two disadvantages of purchasing the specific franchise for the Greater Victoria area, b. (4 marks) Describe two advantages & two disadvantages of starting her business from scratch and operating independently in the Greater Victoria area, c. (2 marks) A search on Google shows 26 massage therapy clinics listed in the Greater Victoria area. Do you recommend Sarah purchase the franchise or not? Explain why