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QUESTION

Eva is thinking of opening a small coffee shop in Manchester. She has looked at premises near the train station but the rents are very expensive. There is also a lot of competition in the town centre

Eva is thinking of opening a small coffee shop in Manchester. She has looked at premises near the train station but the rents are very expensive. There is also a lot of competition in the town centre from big coffee shop chains such as Costa Coffee and Starbucks. She is therefore thinking of starting up a franchise operation.

With a minimum investment of £5000, she could start a Coffee-Bike franchise. This is a mobile coffee franchise where coffee is freshly made and sold from her adapted bicycle. The franchisor would provide Eva with her own bike, equipment and all the necessary training.

Analyse the benefits to Eva of operating as a franchise to set up a mobile coffee shop."

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