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Unformatted text preview: her industry. Almost six hundred new fast food restaurants, representing fifty-two different national chains, were launched in
1996 thanks to government-backed loans. The chain that benefited the most from SBA loans was Subway. Of the 755 new Subways opened
that year, 109 relied upon the U.S. government for financing. the world beyond pueblo
THE FRANCHISE AGREEMENT THAT Dave Feamster signed in 1984 gave him the exclusive right to open Little Caesars restaurants in the Pueblo area. In addition to the franchise fee, he had to promise the company 5 percent of his annual revenues and contribute an additional 4 percent to
an advertising pool. Most Little Caesars franchisees have to supply the capital for the purchase or construction of their own restaurants. Since
Feamster did not have the money, the company gave him a loan. Before selling a single pizza, he was $200,000 in debt.
Although Feamster had spent four years in college at Colorado Springs, less than an hour away, he’d never visited Pueblo. He re...
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This note was uploaded on 02/25/2014 for the course MGMT 120 taught by Professor Litt during the Spring '08 term at UCLA.
- Spring '08