Mickey is considering starting a brand new coffee shop by buying into a franchise. She has worked in restaurants for over ten years in a number of positions, including as a host, server, prep cook, and barista, and for both successful and struggling restaurants. With all this experience, she is ready to explore her options for owning a coffee shop and has come to you for advice about starting a Dunkin’ Donuts franchise.
Use the resources below and your knowledge of business organizations to advise Mickey on whether she should form an LLC and buy into the franchise. Also, discuss the advantages and disadvantages for Mickey moving forward with the business. Provide Mickey with advice as to how she might capitalize her business and the costs for this particular franchise vs other potential options. Be sure to include your legal conclusion with factual support as to whether Mickey should or should not buy the franchise.
Resources are down below and attached:
https://www.sba.gov/business-guide/plan-your-business/buy-existing-business-or-franchise
https://www.ftc.gov/business-guidance/resources/consumers-guide-buying-franchise
https://www.forbes.com/sites/jaredhecht/2019/02/27/the-pros-and-cons-of-buying-a-franchise/?sh=779b90fd1198
https://www.entrepreneur.com/franchise500