PinkBerry's Franchise Plan - Essay Example

Business Plan: “PinkBerry” Franchise Plan Introduction: The following report is based on the business plan of an entrepreneurial venture of opening a franchise of PinkBerry in the city of Dubai, United Arab Emirates. As the type of business is already being defined, before signing the agreement of the franchise it is important to develop a proper business plan to make out the feasibility of the entire business. These business plans becomes helpful while applying for business loan from bank and other financial institutes. The business plan is somewhat like a road map to the actual business and can also be regarded as a resume for the business. That is the reason why the “Business Plan” report should contain some fundamental parameters like the overall market and the financial analysis of the business. In this particular case of opening franchise business a detailed company summery and ownership structure is also needed to be included. This is because the strength and weaknesses of the original company is being reflected in the respective franchise. The basic marketing strategy and product offering remains same throughout all the franchises. Here in this particular case a franchise is being opened in an international location. Thus a detailed market analysis of the company is required prior to any financial assumptions. This business plan will distinctly contain three sections. The first section will contain the company background (PinkBerry), the second section will give an overview of the general marketing strategy of PinkBerry and the third section will give an estimate of the financial estimates of the proposed franchise. Company Profile: The Company started its operation in the year 2005 and it has originated mainly from the two cities of Los Angeles and New York and within five years of their operation the company PinkBerry has successfully established its leadership in the frozen yogurt segment. (“The leading, enduring, frozen yogurt brand for franchising”, 2009). Operating in a very concentrated segment the company has concentrated more on developing a cult-like following in its customer base. Though the company has originated locally, its prime focus is to expand both in the local and the global market simultaneously. Its local growth had hit a landmark as PinkBerry opened its first airport store in the month of September of the year 2009. (“The leading, enduring, frozen yogurt brand for franchising”, 2009) The other local expansion plans are going on in Northern California, Texas, Washington D.C and Florida. (“The leading, enduring, frozen yogurt brand for franchising”, 2009) While boosting their local expansions the company also is concentrating on establishing their base abroad. For that purpose the company has signed up with leading international operator, M.H.Alshaya Co. to promote their brand and develop around thirty four stores in the Middle East and other countries. (“The leading, enduring, frozen yogurt brand for franchising”, 2009) The company has targeted nine countries for their international expansion plan. Executive Team & Board of Directors: Ron Graves is the Chief Executive Officer as well as the Board Director of the company (“The leading, enduring, frozen yogurt brand for franchising”, 2009). Michael Dixon and Todd Putman are the Chief Financial Officer and the Vice President of Marketing respectively (“The leading, enduring, frozen yogurt brand for franchising”, 2009). In the year 2007, Howard Schultz, the chairman of Starbucks Coffee Company approached PinkBerry as he considered the founders to be world class visionary entrepreneurs and compared the emergence of this company as a “cultural phenomenon”. (“The leading, enduring, frozen yogurt brand for franchising”, 2009) PinkBerry is also backed by the guidance of world-class leaders from Coca Cola, Walt Disney, Starbucks, Blockbuster, California Pizza Kitchen, Jamba Juice and The Cheesecake Factory. (“The leading, enduring, frozen yogurt brand for franchising”, 2009) The help from these companies and their association with brand helps PinkBerry to improve on its operations and customer servicing. The owners and their strategies: Shelly Hwang and Young Lee are the founders of PinkBerry. The former is also the Chief Product Officer of the company, while the later is the Chief Creative Officer. (“The leading, enduring, frozen yogurt brand for franchising”, 2009) Shelly Hwang was at first inspired by the gelato experience of Italy and also correctly estimated the love for ice-cream among the Americans. Analyzing the demand and also combining the two experiences she came up with the unique PinkBerry recipe and it can be said that she had revolutionized the frozen yogurt segment with the introduction of the product. (“The leading, enduring, frozen yogurt brand for franchising”, 2009) Till now this co-founder (Shelly Hwang) leads the product development team and focuses on introducing products of supreme quality. This stress on quality is the company’s major strategic focus as PinkBerry tries to deliver frozen yogurts which cannot be challenged quality wise. Thus as far as the product delivery is concerned the main focus of the company is on the “quality of product”. (“The leading, enduring, frozen yogurt brand for franchising”, 2009) But there is another factor, which influences the business of the company. The other co-founder Young Lee comes from an architectural background and he focuses on designing each PinkBerry store. The main stress is given on the store design so that customers get more attached and the design can bring in an appeal and connects the customers. The aim is to make each PinkBerry store as clean and fresh like its product. This is how the company tries to relate their product delivery with the store atmosphere. The basic characteristics those are observable in any franchise store are the pebble floors, Philippe Starck furniture, Le Klint lamps etc. (“The leading, enduring, frozen yogurt brand for franchising”, 2009) The combinations of these design elements is masterminded by Mr. Lee as the company tries to balance the contemporary style with the sensory experience which they aim to provide to the customers. The combination of store design and the product quality creates great customer emotional connection, which can be regarded as the main brand recognition factor for PinkBerry. The company consciously does not want to isolate the product and the service separately; rather they are constantly focusing on creating an environment wherein the customers readily understands the unique characteristics which creates affinity towards the brand. The brand image that PinkBerry carries is being recognized for the emotional connection with the customer base. (“The leading, enduring, frozen yogurt brand for franchising”, 2009). The company mainly serves, premium tangy frozen yogurt along with the daily-cut fresh fruit toppings. This frozen yogurt recipe contains authentic Italian ingredients. (“The leading, enduring, frozen yogurt brand for franchising”, 2009). These frozen yogurts are intentionally designed by Shelly Hwang so that they compliment the fresh fruit toppings. Though the basic ingredients remain the same, the company constantly focuses on product design as innovation is still a key contributor to its success. (“The leading, enduring, frozen yogurt brand for franchising”, 2009). The company constantly comes up with new seasonal yogurt flavors and new combination of toppings to attract the customers. One of their latest introductions is the “PinkBerry Fruit Parfait”. (“The leading, enduring, frozen yogurt brand for franchising”, 2009). This innovative aspect in the form of seasonal variations is not only observed in the way of product introduction but also in the franchise outlet design and customer service. Every particular detail is being observed while creating the atmosphere in the franchise outlets. This is because the design of the franchise outlets is a part and parcel of their product and service delivery. The authorities has to make it sure that each and every outlet reflects the true spirit and purpose of the original company. It has been already mentioned earlier that PinkBerry focuses on making emotional connection with the customers. For that reason the company also gives much stress on customer service and focuses on the fact that a good relationship is being maintained with the customers. The in-store team members identify the valued customers and they focus on deepening the relationship with them. (“The leading, enduring, frozen yogurt brand for franchising”, 2009). Thus to sum up the strategy adopted by the company, it can be said that PinkBerry with its unique product and focused customer relationship approach tries to extract more profit out of each and every customer who visits its outlet. Also, recently the company is focusing on expanding its outlet throughout the globe. Organizational Structure: The organizational structure is divisional in nature as each separate team is being designated for different divisions like marketing, finance, operations, branding, product development, store deign etc. (“The leading, enduring, frozen yogurt brand for franchising”, 2009). The outlets are fully franchised as the company controls the main operations and the way of conducting business for each and every franchise. This is the main advantage of opening a start –up franchise business, as the brand with which the business partners will work, is already being established and even the company will provide the respective franchise with adequate product and service knowledge and all the help needed for business. Management Team: The management team for this particular franchise business consists of Issa, Mohammed, Hussain and Ahmed. These four executives will take the charge of the operations of the particular franchise outlet. Marketing Analysis: The above section was important specially for developing the business plan for a franchise business as the, particular franchise will follow only the policies and practices of the main company they are working for. Thus before analyzing the market it has to be kept in mind that the marketing strategies and practices that PinkBerry is being adapting should be reflected well in the franchise. The franchise to be opened in Dubai should successfully incorporate the culture and values of the original company (PinkBerry). The product and service quality that the company offers should interpreted properly and with much care as this particular franchise is located outside the United States of America. Now there are certain factors which both the company as well as the franchise owner in Dubai has to keep in mind. First and foremost the company has to take advantage of the first mover advantage in the city as no other outlet in the frozen yogurt segment has evolved with such precision. (Chen, Yee, Familier, Paolini, N.d). The second most important aspect which must be considered is that the quality of product should be maintained in the franchise outlet of Dubai, especially as it is an overseas outlet. The customer base should be rebuilt in that area and though PinkBerry is an established brand in the United States of America, the franchise owners also have to take the responsibility of the local advertising and brand promotion. The focus of advertising should be on health and flavor of their product. (Chen, Yee, Familier and Paolini, N.d). The franchise should target health-conscious individuals and as well as the multi ethnic group of people residing in the city. Also as the business is a start-up business in the area and the brand is yet to be established, the franchise and the company should focus on maintaining simplicity in the menu and product offering. The location is also another factor that the franchise owner should take care of. The location status for all PinkBerry franchise should be upscale and a group of young motivated people should be hired for the franchise so that they connect well with the customers and remains focused on developing proper relationships. (Chen, Yee, Familier, Paolini, N.d). This relationship building is essential as regular customers are more profitable for the company. The Overall market: The current level of health consciousness and the degree of awareness especially among the Americans and the Europeans has led to the increase of a number of yogurt restaurants all over the world. It has to be kept in mind that the market is so advanced that Southern California of United States of America has already experienced a frozen yogurt boom and burst cycle in the 1980s and 1990s. (Chen, Yee, Familier, Paolini, N.d). As the consumers are seeking healthier options for cold and frozen deserts, the frozen yogurt sales grew by 12 percent in the year 2007 alone. (Chen, Yee, Familier, Paolini, N.d). According to the survey conducted on the U.S market for Ice Cream and related deserts, the market is about to grow by US $4 billion by the year 2012. It is worth mentioning that frozen yogurt occupies the maximum share in the growth segment. The market for frozen yogurt is forecasted to increase by 18 percent over the time period of next five years. (Chen, Yee, Familier, Paolini, N.d). But there is existing competition as although PinkBerry is the first mover there are other competitors in the market. Customer characteristics: PinkBerry as well as most of the new competitors mostly targets young adults and health conscious individuals for marketing their product. The main offerings are also quite similar to PinkBerry as most of the frozen yogurt producers offer variety of flavors like tart plain or green-tea flavored yogurt, with toppings of fruits and nuts. (Chen, Yee, Familier, Paolini, N.d). The design of the shops are not only made for attracting health conscious individuals but also those young groups of people who seek to hang out at Starbucks or the Coffee Bean & Tea Leaf and other related shop outlets. That means the design of the franchise outlet should be done in order to capture more market and creating an atmosphere wherein the customers can relate themselves with the brand. (Chen, Yee, Familier, Paolini, N.d). This attempt is attributed to the interior design quality of the shop outlets. The market seems even more positive for the frozen yogurt segment as with its innovative product introduction it has also successfully captured some health conscious people as they are preferring products like Frappuccino over drinking. (Chen, Yee, Familier, Paolini, N.d). Thus we can see that the buying decisions of the consumers depend on several factors over and above the regular demand controlling parameters like price and promotion. Nature of Competition: The competitive nature of the industry is to be ascertained before initializing plans for opening the franchise in the specified city. Till now we know that future market prospect for the product is positive but the ability of PinkBerry to cope with the competitive pressure will ascertain the degree of success for the company in the future. The history of frozen yogurt in the United States of America dates back to the 1970s but it was in the 1980s the product became popular among the American citizens. (Chen, Yee, Familier, Paolini, N.d). But recently in the current decade the competition has increased to a rapid extent. This increase in the competition simply means that the company (PinkBerry) should successfully introduce new product mix within regular time interval to sustain the market competition. The main product and service mix of all the competitors are almost similar as all the companies in the frozen yogurt segment promotes their brand as non-fat natural product accompanied by the upscale interior designing of their store. Due to the similarity of the promotional activities, innovativeness in the product promotion segment is becoming and essential factor for PinkBerry. After analyzing carefully the nature of the business, it is also important to have a detailed study about the primary and local competitors of the company. Red Mango is the main competitor for PinkBerry and the company is considered to be one of the dominant players in the “second wave” of the frozen yogurt fad. (Chen, Yee, Familier, Paolini, N.d). Although this company uses similar healthy toppings like mango, strawberry, granola, various cereals and even coconut like PinkBerry, but the major difference lies in the type and quality of the yogurt. The market survey concludes that the yogurt offered by Red Mango is slightly tarter and creamier than the yogurt offered by PinkBerry. (Chen, Yee, Familier, Paolini, N.d). These two brands are more specific and are close competitors as both the companies (Red mango & PinkBerry) meets the National Yogurt Association’s (United States of America) standards and criteria for the live and active culture. (Chen, Yee, Familier, Paolini, N.d). The other competitors do not meet the specified standard, which makes both the companies the supreme leader in the segment. One of the other competitors is “The Country’s Best Yogurt”. The company was established in the year 1981 and has started its operation in Little Rock, Arkansas. (Chen, Yee, Familier, Paolini, N.d). The main aim of the company “The Country’s Best Yogurt” is quite similar to that of PinkBerry and Red Mango as they wanted to introduce healthier alternative to ice-cream. But till date as far as the health issue is concerned “The Country’s Best Yogurt” falls behind Red mango and PinkBerry standard. The survey results show that the a half-cup serving of Red Mango contains about 18 percent fewer calories than a half-cup serving of “The Country’s Best Yogurt”. (Chen, Yee, Familier, Paolini, N.d). This may be considered as the main reason for the sales decline and store closure for the company (The Country’s Best Yogurt) although having a global presence of about two thousand and seven hundred stores. During the 1980s “The Country’s Best Yogurt” enjoyed high expansion but as the competition grew larger in the later part of the 90s and this current decade, the company failed to sustain the required standard. To sustain the pressure the company is now returning to its frozen yogurt roots by removing all the ice cream products from the stores. This competitor (The Country’s Best Yogurt) fails to introduce and launch new line of yogurt based products and also fails in the segment of new store design. (Chen, Yee, Familier, Paolini, N.d). But it has to be considered that this particular brand (The Country’s Best Yogurt) has global presence and is an older player in the market. For PinkBerry it has to be considered that, though Red Mango is the primary threat for the company, the companies like “The Country’s Best Yogurt”, occupies a considerable portion in the global market. Strategy: The key competitive advantage that the company (PinkBerry), enjoys is that since its launch in the year 2005, frozen yogurt places were springing up across the country especially in California. (Chen, Yee, Familier, Paolini, N.d). Since the launch PinkBerry experienced several spin-offs which were followed by the first opening including the Snowberry, IceBerry, Berri Good and Kiwiberri. (Chen, Yee, Familier, Paolini, N.d). Due to this first mover’s advantage of the main company (PinkBerry) in product and service promotions, the company achieved significant height in less time than its older competitors. The other success factors of PinkBerry can be contributed to the innovative store design and the simplicity in the menu choices offered by the company. (Chen, Yee, Familier, Paolini, N.d). The store environments for each and every franchise are meticulously created so that any individual entering the store can directly link the décor with his or her childhood. (Chen, Yee, Familier, Paolini, N.d). The store atmosphere is often being represented in the form of a beach or a park where frozen deserts are more applicable. This essence is being created by the gravel floor and the plastic chairs which are reminiscent of the plastic toys of children. (Chen, Yee, Familier, Paolini, N.d). Alongside with this the music played inside the store is loud and also energetic which have similarity with the music played in the ice cream truck. The co-founder Mr. Lee states that “The PinkBerry experience is like a childhood experience”. (Chen, Yee, Familier, Paolini, N.d). They purposely create this sense of childhood among the visitors so that they can readily relate to the atmosphere and the brand itself. (Chen, Yee, Familier, Paolini, N.d). Young Lee admits that his innovation in the store design is the result of the inspiration from companies like Apple, Starbucks and In-N-Out Burgers. In-N-our Burger’s policy is also similar to that of PinkBerry as the former also follows the strategy of introducing simple menu along with superior quality. (Chen, Yee, Familier, Paolini, N.d). Also Apples ability to deliver to people belonging to all age segments and Starbuck’s simple menu policy inspired the founders to introduce the similar strategic pattern in the frozen yogurt segment. There are about seventy two PinkBerry stores which are mostly located in Southern California and among them thirteen are located in the city of New York. (Chen, Yee, Familier, Paolini, N.d). That is the reason why PinkBerry though being a healthier brand is not well known outside the two states and this can be regarded as a major disadvantage when compared to brand like “The Country’s Best Yogurt”, who enjoys a huge global presence. Also when compared to their main rival Red Mango, PinkBerry’s menu may seem to be limited as they consists only four flavors of yogurt style deserts: Original, Green Tea, Pomegranate and Coffee. (Chen, Yee, Familier, Paolini, N.d). Though this simplicity is the part of the success strategy of PinkBerry. But there is another problematic area as far as the local self-served frozen yogurt shops are concerned. The survey results shows that other self-served yogurt shops have good flavor selection and importantly enough they allow the customers to mix and match a wide variety of flavor and toppings. (Chen, Yee, Familier, Paolini, N.d). SWOT Analysis: Strengths: Premium product quality Excellent store ambiance & design. Simple menu offering Emotional connection of customers. Weakness: Less national and international coverage when compared to the competitors Lack in product variety. Opportunity: Rising level of health consciousness among consumers. Large international market yet to be explored. Threats: Intense local and global competition. Thus from the SWOT Analysis we can see that the main threat of the company comes from the competitors both on the global (Red Mango, The Country’s Best Yogurt) as well as the local (the self-served yogurt shops) font. Though there are tremendous market opportunities as more people are getting health conscious. Positioning and Differentiation strategies for the service Apart from the in-store facilities the company PinkBerry also concentrates on their home delivery service. (Chen, Yee, Familier, Paolini, N.d). PinkBerry or the particular franchise has to determine what will be the best positioning and differentiation strategy that can be adapted so that the franchise becomes successful in the local market of Dubai. What differentiates Pink Berry from other frozen yogurt companies is the quality of product and the ambiance created in its franchise outlets. To obtain a clear idea about the best solution for PinkBerrys positioning and differentiation strategy, the franchise must first identify the different types of consumers that will be using the delivery service. The main type of consumers can be a family of three or four, single parents, singles, group of friends, dating couples etc. (Chen, Yee, Familier, Paolini, N.d). The family of four is normally very busy throughout the week. During the weekends it is very exhaustive for them for going out particularly to have frozen deserts. For that matter to reach to these customers PinkBerry has designed this home delivery service. If the particular franchise that will be opened in Dubai keeps the home delivery service in their disposal it would be profitable for them to grab the “family” customer base present in the city. The single parents are also very busy throughout the week and when compared to the families the single parents have to take much more responsibility. For that reason the single parents will the ones who will also less visit the store. But even so the company can reach them through their home delivery services. Yet again with this service the company can cater more customers at a given time. For the single individuals the home delivery service may not be important parameters as the single persons are mostly outwardly in nature and they would not mind enjoying the essence of a PinkBerry retail outlet on their own. They may only use the service occasionally. The same also goes for the dating couple as they would also like to hang out together in the franchise stores. Thus by introducing the home delivery service PinkBerry can attract and cover much more of a market than it normally would have achieved only through franchise sell. Price Strategy The price strategy for PinkBerry’s delivery service would be closely similar to the pizza delivery service but with some changes. In case of Dominos Pizza, the company promotes its home delivery services by promising delivery within thirty minutes of the order. In case of PinkBerry making such offers will be much easier and convenient as the frozen yogurts tales much lesser time than pizza. The customer has to stay within a 10 mile radius from the nearest store location, any location further than 10 mile radius, the order will be cancelled as it will be more difficult for Pink Berry to delivery to them in given time. Thus the pricing for the home delivery service can be done on the basis of the distance of the store and the delivery point. For example, if the customer stays 5 miles away, the cost of delivery would be lesser. On the other hand if the customer stays at distance of nearby 10 miles the delivery cost will go up. The price of delivery will be factored by mileage, the number of items that the driver has to carry and a tip for the driver. PinkBerry delivery service will be more expensive than pizza because the number of items that PinkBerry offers with the yogurt and the yogurt has to be kept refrigerated. There will be more equipment involved when it comes to delivery yogurt. Overall, PinkBerry’s delivery service will be expensive but will be well worth it because the quality of the product. Financial assumptions: After analyzing the market of the product and the company on a whole we must now focus on the financial assumptions and the forecasts with the help of the market analysis. For any kind of business and specially franchise business some initial investment which is required to be made. In the case of setting up a franchise there are some primary capital investments which are being shown in the flowing chart. Type of Capital Investment Amount Franchise fee $40,000 Royalty Fees 5% of sales and 2% for Lease/rental $200-$250/ month Marketing and advertisements $2000-$5000 Required Purchases $1500 Training cost $1000 Other Start-up costs $1500 Employee payroll $2500 Grand Opening expenses $500 Other expenses $250 From the given chart and estimation about the initial capital requirement can be made. This initial capital requirement actually gives the estimation of the expenses that the company will incur in due time. The next table shows the Projected Profitability of the PinkBerry franchise to be setup at Dubai. Projected Profitability Statement US $ 1000 Years -> 10-11 Projected 11-12 Projected 12-13 Projected Gross Sales 250.00 312.50 390.63 Less : Excise Duty 0.00 0.00 0.00 Sales Tax 0.00 0.00 0.00 Net Sales : 250.00 312.50 390.63 Total Income : 250.00 312.50 390.63 Variable Cost -       Production Cost 2.50 3.13 3.91 Royalty Fees 12.50 15.63 19.53 Salary & Wages 2.50 2.75 3.00 Selling & Distribution Exps 7.00 5.00 5.00 TOTAL : 24.50 26.50 31.44 CONTRIBUTION 225.50 286.00 359.18 Fixed Cost -       Administrative Expenses/Rental expense 3.00 3.00 3.00 Interest on -       Term Loan (old)       Term Loan (new)       Cash Credit       Total       Depreciation 45.21 41.03 41.93 TOTAL : 45.21 41.03 41.93 Operating Profit after       Depreciation & Interest 177.29 241.97 314.25 Miscellaneous Income       TOTAL :       TOTAL PROFIT 177.29 241.97 314.25 As the projected demand from the market analysis comes to be positive, the gross and the net sales estimated from the financial assumptions is increasing. The important thing to be noticed is that the expenses are not going up to that extent as the franchise is expected to use its resources optimally. The next graph shows the increase in the assumed figures of Net Sales for the three consecutive years. The figure below shows that the rate of increase of sales in the three consecutive years (2011, 2012, 2013) of prediction. This is definitely a positive sign for the franchise as with the increase in sales the net profit for the franchise will also tend to increase. The next graph in the report gives and idea about the increasing trend of the estimated profit figure for the particular franchise. The trend of the profit figure is not only positive but the rate of increase that is being calculated is also very high. This means that in the initial years of setting up the business, the franchise outlet will incur more costs as its expenses become high. But with years of operation the franchise outlet can successfully utilize its resources to the optimal level thereby increasing the profit figure. The increase in sales along with the relative decrease in expenses boosts up the profit to the desired extent. PROJECTED BALANCE SHEET Us $ Years ->   10-11 Projected 11-12 Projected 12-13 Projected LIABILITIES :         Share Capital   681.17 681.17 681.17 Reserve & Surplus A/c   1862.89 2059.61 2343.52 Working Capital Loan   498.98 597.52 715.66 Secured Loan   99.93 42.33 13.73 Unsecured Loan   597.27 522.27 422.27 Sundry Creditors   98.89 118.22 141.41 Other Liabilities   59.18 34.18 5.00 Trade Advances   27.00 27.00 27.00 Deferred Tax Liabilities   70.38 70.38 70.38 TOTAL LIABILITIES :   3995.69 4152.68 4420.14           ASSETS :         Fixed Assets :   3503.72 3553.72 3603.72 Gross Block   Less : Depreciation   556.21 597.24 639.17 Net Block :   2947.51 2956.48 2964.55 Investment   0.01 0.01 0.01 Raw & Packing Materials   64.42 77.30 92.76 Stores & Spares   1.19 1.19 1.19 Stock-in-Process   56.68 66.64 78.46 Outlet Investment   0.32 0.32 0.32 Finished Goods   193.25 231.91 278.29 Sundry Debtors   349.45 419.34 503.20 Other Current Assets   40.50 40.50 40.50 Loans & Advances   177.90 177.90 177.90 Cash & Bank Balance   164.47 181.10 282.96 TOTAL ASSETS :   3995.69 4152.68 4420.14 The following graph shows the Break-Even analysis. This analysis is required to determine that point in the business where the initial expense is recovered and the business is in a no-profit, no-loss situation. In the graph TFC represents the Total Fixed Cost of production, the TVC represent the Total variable cost and TC is the total cost incurred. Break-Even Point (units) = 2,000 Break-Even Point ($s) = $10,000 Conclusion: From the overall study and the different assumptions one thing can be stated with certainty that this particular business plan is definitely profitable in nature. The main particular reasons being that the market demand for the product is high as well as the product produced by the company (PinkBerry) is of high quality. The company also makes sure that it’s each and every franchise outlet is well designed so that maximum customer attention is drawn and over and above the customers make a connection with the brand. With this kind of support from the company’s end, the franchise will get ample opportunity to exploit the market. Also another fact that is to be considered is that PinkBerry is currently focusing on its international expansions to compete with its close competitors. That is the reason why the company may provide the franchise special help and support as the company itself wants its customer base to grow in the area. These efforts on the part of the company will certainly help the business activities of the franchise owner. The business plan report also gives suggestions about new strategic activities like “home delivery” service that the franchise may look for. This will give both brand promotion in the particular market as well as it will make sure that the company’s products reaches many customers at a given time. It should be noted that acquiring more customers with optimal utilization of resources is always profitable for a business and this positive aspects are being reflected in the financial assumptions for the business. All the parameters that are being studied shows positive results which indicates that the business is certainly a lucrative one. References 1. Chen B, Yee L, Familier E, Paolini R.(n.d.) “PinkBerry Becoming a National Brand”. N.d. retrieved on October 21, 2009 from http://74.125.93.132/search?q=cache:7RQWdgaRChEJ:www.mcafee.cc/Classes/BEM106/Papers/2009/Pinkberry.pdf+Pinkberry+market+analysis&cd=9&hl=en&ct=clnk&gl=in 2. Rich JR. (2007) The Unofficial Guide to Opening a Franchise. USA: John Wiley and Sons 3. “The leading, enduring, frozen yogurt brand for franchising”. (2009). PinkBerry.com. retrieved on October 21, 2009 from file://localhost/D:/Pink%20Berry/Pinkberry%20Frozen%20Yogurt%20Business%20%20Frozen%20Yogurt%20Franchise%20Opportunity.htm> (accessed on 20th October 2009). Read More