For the franchise Snap On Tools

• Provide the following:

1. The name of the franchise and a brief description of the business.
2. Discuss what the franchisor offers to help a franchisee be successful.
3. Provide the franchise fee and the total cost/investment required to own and operate the franchise (itemize a list of cost/investment). Calculate the cost of financing. If a range is given, provide the range and calculate the average of the range as the total investment. Be very careful of the information you get from websites and read it very thoroughly. For example, Allstate isn't a franchise.
4. Assume you will finance the cost of the total investment (or average total investment) and present the following scenarios:

• Assume a 5-year loan period at 5% interest rate per year and provide the following:
  • Amount borrowed
  • Monthly payment
  • Total interest cost for the life of the loan
  • Total of payments for the life of the loan (not number of payments)
• Assume a 10-year loan period at 6% interest rate per year and provide the following:
  • Amount borrowed
  • Monthly payment
  • Total interest cost for the life of the loan
  • Total of payments for the life of the loan (not number of payments)

5. Based on the information you have compiled for your selected franchise, do you believe the franchise is a worthy investment? Why or why not?
6. Compare the two loan types, select the option of your choice and explain your choice (why?)