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Your neighbour is investigating the operation of a coffee shop. Her options are:- 1. Purchase of a Coffee Break franchise at $300,000 plus 7.5% royalties.

Your neighbour is investigating the operation of a coffee shop. Her options are:- 1. Purchase of a Coffee Break franchise at $300,000 plus 7.5% royalties. 2. Purchase of an independent coffee shop that has been operating successfully for 5 years at a purchase price of $180,000. 3. Start her own new coffee shop. Your neighbour hears that you are studying accounting and seeks your advice about the best option. Justify your recommendation.

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