Sally’s Business Idea Sally, your best friend from childhood, is a fourth-year student at the Culinary Institute of America (CIA). Whenever you hooked up, you two spent the entire time planning the “dream restaurant.” It was always an inspiration and, ultimately, what lead her to go to a culinary school. You would always tease her that she did not need to spend hundreds of thousands of dollars to operate a food truck. You were always intrigued by the hospitality industry and ended up at ERAU’s flight school. Sally would always tease you back by saying you did not need to learn to fly the plane to be a flight attendant. But she knew you were a wiz at business and felt comfortable with you managing the business end of the venture. “Just think,” Sally said. “Opening a high-end white-tablecloth restaurant with a fancy name, live entertainment with outdoor tables on a balmy cool-breeze night by a Florida beach – wouldn’t that be amazing?!” Sally said “After performing some preliminary research, it’s now or never!” You both have been pooling resources for some time. You have stockpiled a ton of money from your inventions, investments, and network marketing operations. Sally, too, has accumulated her share of funds from the lucrative government catering contracts. After discussing her notes, you suggested that she research the requirements for starting up the business, and you would complete those functions. You both realized that by investing in these activities early, there would be substantial cost savings. Sally agreed that it was best if she concentrated on the development of the back of the house functions in the kitchen design and restaurant layout. Sally has been experimenting with new food preparation technologies. Her goal is to create a menu that appeals to high-end customers who like to experiment with original exotic flavors and culinary delights. She has been in the experimental cooking labs at school learning cutting edge food preparation technics. You agreed that with her experience running her multi-million dollar catering business, it would be best if she will take the lead in providing direction for the design and management style of the food and beverage aspects backroom side of the company. As a student at the CIA, she has had multiple courses on restaurant management. Fortunately, you are enrolled in a business law course this semester covering the essentials of legal theory and business operations that should be helpful. The course design provides a hands-on use of authentic legal and business-planning tools and documentation required to start and operate a business. The course is going to provide a wealth of information. Sally agreed to handle and provide various issues that need documentation. As a lifelong friend of Sally, you remember one important thing; she always has many questions. Sally expects deadlines to be met on time and to perfection. You always tease Sally that it’s like having a professor around all the time; all you want to do is assign a grade to everything! So you have developed the habit of reading all the support material you can find and performing research that you can use to document everything using a standard legal format that demonstrates that you have good sources or documentation for your work. She expects that you will read your course textbook. You must perform outside research, and review all references provided as resources to assist you in constructing your work product critical to building a sound business plan and completing all of the requirements for a legally recognized company. Name of business will be Eazy Breezy Bistro, will have an upscale Florida beach vibe with diners as high as $250 a plate. Location of restaurant is 1424 N Federal HWY, Boca Raton, FL 33432 free-standing building with a total of 7615 square feet, with 6,000 square feet having air conditioning. Also, there is a 1,615 square foot outdoor covered patio and deck for outside dining. The property can seat 259 combined inside and outside, 93 parking spaces and covered patio seating with a full bar and wine case set up. Cost of property is $5,995,000 REQURIEMENTS Introduction • Present and describe the items you will use to address the concerns of your business plan. • Set the stage for the framework that will become your business plan. • Type of Business (product or service) • Describe the business, the product or services, location (Florida), and any other facts you want to report. Legal Form of Business • Pick the appropriate form of business except for a sole proprietorship. (The company form may change depending on future events). See Module on Formation. • Consider the costs associated with the chosen business form. • Explain why you have selected this form of business from a tax, company, and personal liability perspective. • Indicate what the advantages and disadvantages of this legal form. • Specify types of officers and duties that will be involved in the company’s management. • Using the business’s location, review all state and federal requirements for starting a business. • Using any new information or previously provided information, write a brief outline mapping the required steps required to qualify. • Using the fictitious name that you researched for availability, attach the information collected from your search. Legal Setting of Business • Expand upon the information you stated under the legal form of business. Describe any government laws or requirements that pertain to your business. • Describe any zoning requirements for the business. • Include any restrictions such as zoning, safety, environmental, easements, or other requirements. Location Requirements • Describe the property or location of your business. • Discuss the viability of the business in the chosen location from a population, transportation, and community income perspective. Have you considered transportation, ease of customer access, and utilities at this location? • Considering the debt acquired to purchase the property and discuss the viability of the profitability. Business License Research and Costs • Describe the business license and permit requirements for the location where you will be doing business (factor in the type of business and the impact it will have on the costs of governmental regulation). • Check the city and county websites for business license requirements and the costs for the business license. Insurance Requirements • Describe the types of business insurance required for operating this type of business. • Is bonding required? • If you have employees, describe the mandatory types of insurance to consider. Proprietary Rights • Describe any Intellectual Property that your business may own or create. • Consider trademarks, copyrights, design specifications, patents, and logos. • Discuss the steps required to protect all intellectual property associated with the business. Employment Law and Requirements • Attach a copy of the search for federal Labor laws obtained from your research of federal Employment Regulations. Describe your decision to hire or not hire employees vs. independent contractors. • Review IRS.gov for guidance on mandatory taxes. Purchase Orders and Contracts • What foreseeable types of pricing arrangements are you underneath? Contract pricing arrangement examples are firm fixed price, fixed price with economic price adjustment (EPA), etc. • Are the other Regulations that are required based on the mix and government contractor status cost-effective? Government contracts, direct hires, particular needs? • For other types of contracts, are you considering labor, time and materials, or multiyear- type? • Support your contract types with justification. Why are you planning on using these purchase orders and contracts? Torts and Crimes Protection Describe the types of torts and crimes relating to your business that you will have to protect from damages and disputes. Property and Requirements • Describe any company property (equipment, computer systems, or building requirements) that may be necessary for startup and planned for business operations. • Do you plan of leasing, renting, or buying any business property? Please support your decision. UCC Considerations • You will learn in this course, that the Uniform Commercial Code (UCC) governs many types of business requirements such as contracts for lease or sale of goods, transactions, fraud, the passing of title, risk of loss, and other contract requirements. Describe how you plan to comply with the UCC for your business. Other Considerations • Describe any other requirements you have learned in this course that you will have to consider in starting, operating, and eventually closing your business. Conclusion • Your Plan Conclusion should summarize the main concepts addressed in this paper. Restate the blueprint of your businesses’ success. Restate important ideas and recap your findings.
