1 of 4 Celestial Enterprises, Inc. Celestial Enterprises, Inc., operated and licensed others to operate expedited-service restaurants under the name Luna's. The menu featured burgers and a limited selection of Mexican foods. The first Luna's was opened in Santa Fe, New Mexico, on June 9. 2003. Ten years later there were 298 restaurants in operation in 27 states, of which 111 were operated by the company and 187 by franchisees. In addition, 4 restaurants were under construction by the company, and 64 by franchisees. A balance sheet as of June 30, 2013, is included in Figure 1. Each Luna's restaurant was built to the same specifications for exterior style and interior dcor. The buildings, constructed of yellow brick, were located on sites of approximately one acre The parking lots, depending on the exact size and shape of the land, were designed for 30 to 35 cars. The standard restaurant contained about 1.900 square feet, seated 81 persons, and included a pickup window for drive-through service. Locations were chosen in heavily populated areas since success depend-ed upon serving many customers. All the restaurants offered the same menu. Three sizes of burgers were featured: the Gaucho (quarter pound), the Soldado (half pound), and the Matador (three-quarter pound). The names were integrated into the company's advertising and media advertising targeted each one of the three themes The prospective franchisee signed a document that included the option of operating a specified number of Luna's restaurants in a prescribed geographical area. Each new location required an initial payment of $18,000. In addition, a royalty of 5 percent of gross sales was specified. It was also stipulated that franchisees must spend at least 2 percent of gross receipts on local advertising. Celestial Enterprises, Inc., believed that properly trained employees were the key to success. Therefore, managers and company trainees were required to attend a three-week program covering all aspects of company operations. More than 600 people were graduated from the school during 2009. Celestial Enterprises, Inc, planned to begin construction on five new compa restaurants during 2014. The act size of the buildings had not been determined although the specific sites had already been selected 1 of 4 Celestial Enterprises, Inc. Celestial Enterprises, Inc., operated and licensed others to operate expedited-service restaurants under the name Luna's. The menu featured burgers and a limited selection of Mexican foods. The first Luna's was opened in Santa Fe, New Mexico, on June 9. 2003. Ten years later there were 298 restaurants in operation in 27 states, of which 111 were operated by the company and 187 by franchisees. In addition, 4 restaurants were under construction by the company, and 64 by franchisees. A balance sheet as of June 30, 2013, is included in Figure 1. Each Luna's restaurant was built to the same specifications for exterior style and interior dcor. The buildings, constructed of yellow brick, were located on sites of approximately one acre The parking lots, depending on the exact size and shape of the land, were designed for 30 to 35 cars. The standard restaurant contained about 1.900 square feet, seated 81 persons, and included a pickup window for drive-through service. Locations were chosen in heavily populated areas since success depend-ed upon serving many customers. All the restaurants offered the same menu. Three sizes of burgers were featured: the Gaucho (quarter pound), the Soldado (half pound), and the Matador (three-quarter pound). The names were integrated into the company's advertising and media advertising targeted each one of the three themes The prospective franchisee signed a document that included the option of operating a specified number of Luna's restaurants in a prescribed geographical area. Each new location required an initial payment of $18,000. In addition, a royalty of 5 percent of gross sales was specified. It was also stipulated that franchisees must spend at least 2 percent of gross receipts on local advertising. Celestial Enterprises, Inc., believed that properly trained employees were the key to success. Therefore, managers and company trainees were required to attend a three-week program covering all aspects of company operations. More than 600 people were graduated from the school during 2009. Celestial Enterprises, Inc, planned to begin construction on five new compa restaurants during 2014. The act size of the buildings had not been determined although the specific sites had already been selected