Boston Chicken Case free essay sample

Boston Chicken implemented a franchising strategy that differed from most other franchising companies at the time. Boston Chicken focused its expansion through franchising the company through large regional developers rather than selling store franchises to a large number of small franchisees. In that, an established network of 22 regional franchises that targeted their operations in the 60 largest U.S. metropolitan markets and in order to do so, the franchisee would have been an independent experienced businessman with vast financial resources and would be responsible for opening 50 – 100 stored in the region. Boston Chicken focused on widespread continuous expansion of its operations to become to developed across the board food chain. Scouting for real estate assured the highest standards for developing properties and was critical to the company’s future success. To assist in future growth of the franchises, Boston Chicken implemented a communications infrastructure, which provided a supporting link for communication between its networks of stores. We will write a custom essay sample on Boston Chicken Case or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In addition in efforts to improve operating efficiency, the company locked in low rates from its suppliers and developed flagship stores, which did most of the initial food preparation which inadvertently reduced employee training costs. Many of these regional developers were given a revolving credit line to help support expansion. This type of financing came with credit risk while the franchises average revenue from operations were not sufficient enough to cover the expenses which raises doubt for the repayment of such loans. 2. The accounting policy of reporting the franchise fees from Boston Chicken’s area developers as revenue seemed most controversial. These franchise fees, which accounted for more than 50% of total revenue, did not represent revenues from operations. Also, the source of most of the ranchise fees came from the financing provided by Boston Chicken, the franchiser, where the money coming in was the same money that was going out. This overstated earnings of the company. Since the debentures can be converted into shares of common stock, most of the revenue from franchise fees should have been deferred. Reporting revenues that included these franchise fees his the fact the most of the franchised stores were operating at a loss, which provided a false impression to investors. While Boston Chicken, the franchiser reported a net income from operations of $24,611 in 1994, if they excluded the income provided by franchise fees, they company-operated stores would have been operating at a loss, which would have been a more accurate picture for the company’s operations and its question of having a profitable future. 3. Boston Chicken, the franchiser, reports revenue based on franchise fees (includes royalties, initial franchise development costs, interest income from area developer financing, lease income, software fees, and other related franchise fees), and company operated stores. The revenue reported on the income statement does not reflect the operating income or losses generated by the area developers, with most of these area developers operating at a loss. Since the franchiser provides financing to the area developers, it seems that consolidation of the financial statements would provide vital information to the users of the financial statements especially since the repayment of loans relies heavily on the profitability of the franchisees. Basically, Boston Chicken was not reporting the results of operations from its area developers because Boston Chicken did not have an equity position in these firms; rather their stake in these franchises was reported as debt financing. In doing so, Boston Chicken did not have to report the losses that were incurred in these operations. By manipulating the financial statements, the company gave a false impression on its future prospects of the company, allowing them to more freely raise capital through the issuance of common stock, and inadvertently inflating tock prices.

Saint Marys College in California Admissions Facts

Saint Mary's College in California Admissions Facts ​Saint Marys College in Moraga, California accepts most applicants each year, with a high acceptance rate of 80  percent, although applicants tend to have strong academic records. Students interested in applying to the school will need to submit an application (the school accepts the Common Application; more on that below), high school transcripts, a letter of recommendation, SAT or ACT scores, and a personal essay. Check out Saint Marys website for more information on how to apply. Admissions Data (2016) Saint Marys College of California Acceptance Rate: 80  percentTest Scores: 25th / 75th PercentileSAT Critical Reading: 480  / 590SAT Math: 470  / 590SAT Writing: - / -What these SAT numbers meanSAT score comparison for California collegesACT Composite: 22 / 28ACT English: 22  / 28ACT Math: 20  / 27What these ACT numbers meanACT score comparison for California colleges Saint Marys College Description Saint Marys College of California is a Catholic, Lasallian, liberal arts college located in Moraga, California, about 20 miles east of San Francisco. The college has an 11 to 1  student/faculty ratio  and an average class size of 20. Students can choose from 38 majors, and among undergraduates, business is the most popular program. Specifically, the most popular majors are Accounting, Business Administration, Communication Studies, Drama, English, Liberal Studies, Psychology. One of the defining features of the Saint Marys curriculum is the Collegiate Seminar, a series of four courses that focus on the major works of Western civilization. All students, including those in pre-professional fields, take these seminars- two in the first year, and two more before graduation. In athletics, the Saint Marys Gaels compete in the NCAA Division I  West Coast Conference. Enrollment (2016) Total Enrollment: 3,908  (2,802 undergraduates)Gender Breakdown: 40 percent male / 60 percent female93  percent full-time Costs (2016-17) Tuition and Fees: $44,360Books: $1,107 (why so much?)Room and Board: $14,880Other Expenses: $2,700Total Cost: $63,047 Saint Marys College Financial Aid (2015 -16) Percentage of New Students Receiving Aid: 96  percentPercentage of New Students Receiving Types of AidGrants: 95 percentLoans: 61 percentAverage Amount of AidGrants: $25,400Loans: $8,018 Graduation and Retention Rates: First Year Student Retention (full-time students): 86  percent4-Year Graduation Rate: 60  percent6-Year Graduation Rate: 73  percent Intercollegiate Athletic Programs: Mens Sports:  Basketball, Golf, Cross Country, Soccer, Tennis, Track and Field, BaseballWomens Sports:  Lacrosse, Rowing, Softball, Soccer, Tennis, Basketball, Volleyball, Cross Country If You Like Saint Marys College, You May Also Like These Schools: San Jose State University: Profile | GPA-SAT-ACT GraphUniversity of San Diego: Profile | GPA-SAT-ACT GraphPepperdine University: Profile | GPA-SAT-ACT GraphCal Poly: Profile | GPA-SAT-ACT GraphUniversity of California - Irvine: Profile | GPA-SAT-ACT GraphStanford University: Profile | GPA-SAT-ACT GraphUniversity of California - Santa Cruz: Profile | GPA-SAT-ACT GraphLoyola Marymount University: Profile | GPA-SAT-ACT GraphSanta Clara University: Profile | GPA-SAT-ACT GraphUniversity of San Francisco: Profile | GPA-SAT-ACT GraphSan Diego State University: Profile | GPA-SAT-ACT Graph Saint Marys and the Common Application Saint Marys College uses the  Common Application. These articles can help guide you: Common Application essay tips and samplesShort answer tips and samplesSupplemental essay tips and samples Data Source: National Center for Educational Statistics