Coffeehouse Case Study

Introduction Shania has a great idea about opening a Christian coffeehouse. Before opening the coffeehouse, she must make the decision on whether to open her own independent coffeehouse or to take on a franchise opportunity. Shania must also decide whether to go into business alone or to select a partner.

Business Form Since Shania’s husband is willing to make a contribution of capital to the business, Shania could enter into a limited partnership with her husband. Her husband has stated he has no interest in the operation or management of the coffeehouse, but we are not told if he is willing to take on any liability of the business. Shania could open her business as a sole proprietorship. A sole proprietorship is the quickest, simplest,

However, there are many items to look at before entering into a franchise. When purchasing a franchise, a person is actually buying into the “know-how” of the business from the franchisor (Kavaliauskė & Vaiginienė, 2011). According to Kavaliauskė & Vaiginienė (2011), in a franchise, the franchisee must follow standardized strategies, specifications, and procedures. This may inhibit Shania from being able to make her coffeehouse a Christian coffeehouse. By owning a franchise, the person is at the mercy of the franchisor and how successful they are. The franchisor has the ability to introduce new products and remove current products from their product line. Kubasek, Brennan, & Browne (2015) show that there are many fees associated with a franchise. There are many successful franchises these days, but Shania wants a Christian coffeehouse, and it is best for her to have an independent business. By having an independent business, she can sell the brands and flavors of coffees that she chooses, she can choose her own hours of operation, and run the business as she sees fit. Shania will be able to choose who she purchases supplies and products from, and not have all the extra fees that come with a franchise. Also, she will not be tied to having to purchase a certain amount of product as is required by some

He is not a Christian. First, as the business grows and Shania needs to hire employees, she should only hire Christians. Carlos is correct in thinking that the “Christian thing” has potential, but Christ will not be shining through him, which Shania would most likely want in an employee. As Matthew 5:14 [NKJV] states, “You are the light of the world.” Shania would want employees to be the salt and light for non-believing patrons that came into the business. Another issue with hiring Carlos is that he is Shania’s neighbor. If he was hired and the employment did not work out, they may be some tension between them and their families. It is best for Carlos to look for a second job