Corporate Governance and Franchising

The restaurant business is booming in Florida. According to statistics by Bykov (2016), more than 44 million people visited South Florida in 2018 and spent an average of $315 per person on food and beverage during their visits, for an estimated total of $8.8 billion (Bykov, 2016). Additionally, sales of drinks and food in the United States increased tremendously to 745.61 billion U.S. dollars in 2018 from 42.8 billion in 1970 (Girma, 2019). It implies that the industry provides an excellent opportunity for business development, and it can be the right industry to venture. In this article, the focus is on developing a business plan for Table du Paradis. Since the company will be operating in Florida, where the competition is stiff, and the industry is dynamic, the idea is to cover all the essential aspects of the business that will be critical to make Table du Paradis successful in the stiff restaurant market in Florida.

Type of Business

The business plan describes a company under the brand name of Table du Paradis. The company is a local high-end and exotic food dining restaurant located in the town of Orlando, Florida.  Orland is centrally placed in Florida, but the aim is to make it one of the best places to get the best dishes of the exotic seafood for the natives and the travelers. Table du Paradis will have diverse roles (Berry, 2019). It will be providing both food and other numerous social services. The restaurant will source exceptional ingredients from different parts of the world. Therefore, it aims to be the best on services provision and exotic food in Orlando. Seafood will be the leading exotic food the company will focus on, and it seeks to provide the best quality for its customers. Blackened Snapper, Pacific Halibut, Oysters on the Half Shell, Big Fin Swordfish Filet Mignon, and Blue Crab Crusted Grouper are some of the exotic seafood that will be part of the menu. Spider Roll, Australian Rock Lobster, Florida Stone Crab Claws, and Stuffed Shrimp are also on the menu.

Additionally, the restaurant will also specialize in gourmet coffee as well as other kinds of food made to order. In Orlando, most of the competitors offer regular coffee (Bykov, 2016). However, Table du Paradis aims for the prime gourmet coffee and plan to have the best quality for the customers at reasonable prices (Berry, 2019). Others will be Dole Whip, Turkey leg, and Alligators. It will have unique spaces for meetings and conferences for those who will require such areas for hire (Bykov, 2016).  It will also have an ample parking space for the customers, all of which will be working towards getting the best for the customers. The aim will be to give the customers the best experience that will make them come for more of such services at the restaurant.

The legal form of business

Table du Paradis will operate under a limited partnership, which is made up of two or more partners. General partners oversee and run the business while limited partners do not assist in managing the business. Sally will be responsible for providing capital to set up the restaurant. Sally will provide capital for renting the space for the company, obtain legal requirements, procuring lease obligations, and equipment that will be critical for the business start-up.

As Sally will be carrying the financial burden for the business start-up, others will be in charge of managing the restaurant as they have the necessary experience. Such partners will oversee a lot of operations to ensure that the business penetrates the market and make a good start. They will manage human resources, marketing, and also the financial aspect of the company. The limited partnership will be critical for this business because it has many advantages that will be important to the partners. The first advantage is that it has tax benefits. The profits and losses in a limited partnership flow through the business to the partners. It means that partners share such gains and losses, thereby limiting their impacts. Also, they are taxed based on personal income or income tax returns; therefore, it means that the partners have limited liabilities. Also, it is the general partners that take charge of the company and ensure that all the daily operations are running appropriately (Wang, Li, Zhen & Zhang, 2016). Finally, it is an excellent opportunity to invest because the person does not necessarily belong to a team that will be running the business.

 Despite such merits, the general partners face the risk of financial losses as they carry the burden of the business debts and obligations. If the company is sued or enters into bankruptcy, all debts and liabilities are the responsibility of the general partners. Also, each general partner can make decisions on behalf of the company, and those decisions become the responsibility of all the general partners (Berry, 2019). The cost of the limited partnership varies from one state to next. For instance, to become a limited liability general partnership or a limited liability limited partnership, a statement of qualification must be filed by the partnership with the State of Florida and pay a filing fee of $25.

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The Legal Setting of the Business

Table du Paradis will operate as a limited partnership business, which implies that it will be under the regulations of Florida partnership laws. Chapter 620 of the Florida statutes outline the Florida partnership laws that guide every citizen or business person that wish to establish any partnership business in the state (Bykov, 2016). Under Chapter 620 of the Florida statutes, there are specific requirements for all the partnership businesses, such as the limited partnership, the general partnership, the limited liability partnership, and the foreign limited partnership. There are various requirements for different types of partnerships, including the creation of the business, the paperwork and fees associated with creation, and the ongoing upkeep and maintenance of such partnerships.

Chapter 620 of the Florida statutes require that the company must have a name that will entail Limited, Limited partnership, LTD, or LP. It is also a legal requirement that the company must be in a position to find and list a registered agent who can legally be served for the LP. Also, the Florida statutes mention that since the company will be registered under the limited partnership form of business, it must have one limited partner and another general limited partner (Berry, 2019). More importantly, the Florida laws require that the business owners must file for a Certificate of Limited Partnership on the Florida Division of Corporations website or mail the form into the Florida Division of Corporations’ office (Wang, Li, Zhen & Zhang, 2016). In this form, the business owners must fill in the name and the address of the registered business agent, the name of the LP’s office, and the name of the general partners taking charge of the business. The agent will need to sign on the form. The last part of the form requires the business owner to state when the LP is beginning its operation and also email to the Florida state agents when and how the information regarding the business should be received.

 Zoning is another critical issue the business should consider.  For the smooth running of the restaurants, there will be a need to obtain the zoning code or permit from the municipal government that will allow for the modification of the property. Such a license will allow for transforming the property into a commercial building that will suit the restaurant’s business. The home-based enterprises are thriving in Orlando and Florida as a whole. A significant consideration for a home-based business is the low cost of the rent than companies operating from the streets. However, running from home may not be appropriate for Table du Paradis for two reasons. First, the zoning ordinance of the Orland in Florida limits such business to be operating in the home. From the zoning law of the Orland city in Florida, there are specific distance restaurants should maintain from home, churches, schools, and main roads. Therefore, it will not be appropriate for the business to be located at home where its distance from homes or public places may limit its proper operations. Next, Table du Paradis is expected to outshine its competitors in the market (Berry, 2019). Hence, its location will be critical for its success in the market. It needs a widely accessible place with enough parking space. It should be available to customers from the main road as this will give it an edge in the market (Wang, Li, Zhen & Zhang, 2016). Table du Paradis will acquire a health certificate to certify that its operations are safe for both employees and the public. Therefore, an occupancy certificate, a health department permit, a sign permit, and a flammable permit will also be necessary for the business.  Such certificate certifies that the company is operating in a legal and safe environment for the customers and the workers

The Location Requirements

Table du Paradis’s location is Orlando in Florida. Orlando will be the best choice because one of the best restaurants that were operating in this place just closed down, and this provides an excellent opportunity for Table du Paradis to thrive. Orlando is also best for this business because of its population (McGinley, 2016). It has a total of 285,713 people, and more than 50% of the people are above the lower class (McGinley, 2016). These are the target of the business.

Furthermore, the city reports more than six million tourists every year, including almost 4 million from outside the U.S (McGinley, 2016). Since Table du Paradis looks forward to offering the best exotic food, it is likely to be the destination of most of the tourists, and this provides the best chance for the business to thrive in Orlando (McGinley, 2016). Orlando is the most visited city in the United States.  There are numerous attractive sites in this city, including Walt Disney World Resort, the Universal Orlando Resort, SeaWorld, Gatorland, and Wet ‘n Wild Water Park (Lai, 2019).  Also, its diversity means that the restaurant can provide a variety of services tuned to different ethnic groups, and this will boost its operations.

Furthermore, Orlando is the best location because it has many nearby suppliers for the restaurant ingredients and food that will be critical for the success of the business (Wang, Li, Zhen & Zhang, 2016). Orlando is closer to suppliers such as WebstaurantStore and many warehouses that can deliver products within a day. Therefore, Orlando is the best for the business because it is the most visited, it has a good population size, it makes it easy to access the supplies, and it has a history of success in the restaurant business.

License Cost and Requirements

Before starting the business, there is a need to understand the legal requirements and also other certificates that will aid in the smooth running of the company. Like most states in the United States, Florida State has strict regulations on any business that provides food service to the citizen (De Ascaniis & Gretzel, 2013). It means that the company must get approval for standard health safety for the clients and workers, and also get proper business permits, all of which come at a cost. The first is the submission of the service plan review. The restaurant’s owners must submit a food service plan to the Division of Hotels and Restaurants (DHR) for approval. Since Table du Paradis will be a new restaurant, it will be critical for it’s to submit the form before the construction to avoid any cost of modifications. The license fee is also a crucial requirement for the business. The license fee varies from one state to another, but for Florida, the charge is about $50.

Also, tax registration is another requirement for the business as well as the employer identification number. The restaurant owner is also required to allow for inspection (Lai, 2019). At Orlando, the following are also needed for restaurants operating within the local city, a Certificate of occupancy, Flammable materials permit Health department permit, and a Sign permit.

Insurance Requirements

In Florida, the restaurant owners must obtain numerous insurance policies, some of which depend on the size of the business and the services it provides to its customers.  The first is general insurance that caters for the operations and premise liabilities. Therefore, a company gets the protection if the customer or an employee is injured within its premise. The next is the general restaurant insurance coverage (Kennedy & Sakis, 2017).  It covers the restaurant owners and the restaurant’s property as well as liability damage based on the specific eating establishment’s potential perils. Also, getting building insurance could be significant in Florida to cover for any damages on the structure of the business premises. For a restaurant of this nature, it is also advisable to get a content insurance cover that will include critical restaurant furniture and equipment for the business. Food contamination insurance is also a good one for the company since any issues of food contamination may arise; this could be important in covering for the cost.

The company will also have some workers who will be serving the customers and also working on different orders to ensure that the customers get the best delicacy. Therefore, insurance policies covering the employees are critical for the business (De Ascaniis & Gretzel, 2013). The first is the workers’ compensation policy that will protect the workers while working at the restaurant. These may include work-related accidents, injuries, and deaths. Also, Florida requires that the restaurant owners have unemployment insurance. Sometimes this is included in the taxes that the business pays; other times, it is a separate cost for the business owner.

Proprietary Rights

Like other businesses, restaurants need to be vigilant with their economic source less they risk running losses due to their competitors taking advantage of their most essential inventions to outshine them. In a restaurant business, there issues such as the recipe and logos, which can sometimes become important for the business. In case the competitor can steal such information, they can outshine the company. Therefore, Table du Paradis will be vigilant with an essential recipe for its seafood. In case of any necessity, the business must take the necessary steps to obtain the intellectual property right to protect such invention and use them as a competitive advantage (Kennedy &Sakis, 2017). The issues of intellectual property cannot be ignored in the current dynamic business world due to the rate at which employees access vital information in the business and share them online. In case such a case occurs, it could be divested if the competitors access such information (Lai, 2019).  Therefore, protecting them could be essential for its competitiveness in the market. The business will ensure that it has a unique brand name and unique logo, all of which will be under its trademark. The company will look forward to protecting its logo and brand name and use them to influence the customers.

Employment Law and Requirements

The United States has different laws that protect employees from discrimination. Although states have different regulations, they depend on the United States constitution and therefore apply to all the states in the country. Table du Paradis will consequently adhere to some labor laws in the country that protect the employees from discrimination. For instance, the business will have to comply with the wage standard in Florida as stipulated by the fair labor standard Act in the state (Garden & Slater, 2017). The business will also be looking forward to protecting the employees from any occupational risk. Therefore, The Occupational Safety and Health (OSH) Act will be the priority for the business. Also, the company will be looking forward to compensating its workers according to the workers’ compensation policies in the state. The business will be keen on the Long hours and Harbor Workers’ Compensation Act (LHWCA), Energy Employees Occupational Illness Compensation Program Act (EEOICPA) and Federal Employees’ Compensation Act (FECA) regulations. The policies will ensure workers get the right compensation for the effort they Make to oversee the business operations.

It will be critical to have employees rather than independent contractors because the employees are much cheaper for a business such as restaurants than independent contractors. Also, since the company is just starting, it will be easy to pay hourly or monthly rather than paying the accumulative amount after a given contract. Therefore, having employees will still be the best option for business. The business is under limited partnerships; consequently, it will not be subjected to any mandatory tax in the state of Florida.

Purchase Orders and Contracts

For outsourcing, the best contract for the business will be the fixed price with economic price adjustment contract (FP-EPA). In the restaurant industry, where there are stiff competition and dynamic business operations, there is a need to use a flexible contract that can allow easy-adjust when the necessity arises. Therefore, it would be easy to use the fixed price with economic price adjustment contract (FP-EPA), which is a lease wherein the buyer pays the reseller a fixed price that has already decided on. It follows the contract (De Ascaniis & Gretzel, 2013).  Therefore this contract is flexible and negotiable and thus allows pre-defined adjustment to the price or rate of the contract. Consequently, it will enable this business to adjust its prices depending on the market in which it will be operating.

For this business, other necessary contracts, such as those for the supply, cleaning, and furniture modifications, will depend on the time and materials because this will be a business that may need a lot of adjustments during its operations. The time and materials consideration contract involves both parties agreeing on predetermined unit rates for labor and materials. The advantage of this approach is the fact that it does not have fixed pricing for each contract, therefore, allowing a chance for price negotiations. Additionally, issues such as labor rate per hour for the contractors, and price make-up are easy to adjust when using this form of contract because the price determination is negotiable.

Torts and Crimes Protection

The torts apply to the restaurant environment, and there is a need to have strict regulations to avoid any form of negligence that will make the business liable for damage to the customers. In the restaurant industry, for instance, negligence leading to injuries such as slip and fall are legal issues that the company needs to look into because the customer has a right to sue the company when they take place (Haddad, 2017). For instance, if the floor is slippery and the business does not warn the customers, any fall and injury resulting from the wet floor can lead to the lawsuit.

Furthermore, there are some instances where crime occurs in a restaurant, and this could lead to the restaurant being sued. For example, if a drunken customers cause a fight in a restaurant and cause harm to another customer who was not involved in the battle, the customer has the right to sue the restaurant for negligence (Lai, 2019).  Furthermore, if the restaurant serves a customer contaminated food, the customer has a right to sue the restaurant, and the restaurant must be liable for damages to their clients. Therefore, it will be necessary that Table du Paradis remain vigilant on these matters of tort and petty crime that may result in legal issues that could tarnish the name of the business.

Property and Requirements

The modification for this business will be the introduction of modern technology for the company. Within the facility, the plan is to introduce Wi-Fi that will allow the customers to browse as they wait for or enjoy their services. Table du Paradis will also market through online social media platforms such as Face, Twitter, and Instagram. These online platforms will also allow the management to get some feedback from the customers who will be awarded some points for doing an honest review and also making them make consecutive visits (De Ascaniis & Gretzel, 2013). Renting will be the best option for this business, it will be the cheapest of all.

UCC Considerations

Based on the UCC code, the restaurant must understand and comply with UCC demands to reduce any form of discrimination. The UCC code provides that where the buyer and seller have agreed to a contract but have not agreed on the price, the price is not what the seller subsequently demands. The cost is thus reasonable for the goods at issue. Therefore, the restaurant must ensure that it does not oblige the customer to pay for anything more than the reasonable price of services, meals, or parking that they offer. Therefore, the restaurant must ensure that all services and foods are within the range of the trending market prices for the customers. In this sense. It will be in line with the UCC considerations.

Other Consideration

Marketing consideration will be critical for this business as it will give it a significant push for its success in the restaurant industry. For this business, thus, the following will be the four Ps for considerations. The product will mostly be exotic food, as already described. The pricing strategy will be penetrative pricing, but premium since the restaurant is likely to invest in premium food for tourists. Online promotion will be critical, and the use of Facebook, YouTube, Twitter, and Snapchat for promoting the business will be essential. Lastly, the store will be of high class with technologies such as Wi-Fi incorporated to attract more customers and increase their experiences.

Overall, Table du Paradis will be a restaurant that gives its clients the best experience by allowing them a chance to enjoy the best exotic food in Orlando. For the smooth running of a business, there are rules and regulations that it must follow to ensure that it is within the legal framework. Furthermore, following such regulations will ensure that there are proper contract measures, there is safety for the clients and the employees. Therefore, there will be no discrimination for employees.

References

Berry, E. (2019). Limited partnership law and private equity: an instance of legislative capture? Journal of Corporate Law Studies, 19(1), 105-135.

Bykov, O. (2016). Vindication of Federal Statutory Rights: The Future of Cost-Based Challenges to Arbitration Clauses after American Express v. Italian Colors Restaurant and Green Tree v. Randolph. UCDL, Rev., 50, 1323.

De Ascaniis, S., & Gretzel, U. (2013). Communicative functions of Online Travel Review titles a pragmatic and linguistic investigation of destination and attraction OTR titles. Studies in Communication Sciences, 13(2), 156-165.

Garden, C., & Slater, J. E. (2017). Comments on Reinstatement of Employment Law (Third), Chapter 1. Emp. Its. & Emp. Pol’y J., 21, 265.

Girma, T. (2019). Development of Service Quality Assessment and Improvement Approach of a Motor Insurance Company in Ethiopia (Doctoral dissertation, Addis Ababa University).

Haddad, N. S. (2017). Do green building strategies influence customers’ and owners’ perceptionsof the restaurant business? (Doctoral dissertation).

Kennedy, D. B., &Sakis, J. R. (2017). From crime to tort: Criminal acts, civil liability, and behavioral science. In Psychology and law (pp. 133-156). Routledge.

Lai, K. (2019). HK mulls limited partnership regime for private equity funds. International Financial Law Review.

McGinley, P. (2016). Excerpt from Florida Elements of an Action 2016-2017 Edition. Florida Elements of an Action, 2017.

Wang, X., Li, X. R., Zhen, F., & Zhang, J. (2016). How smart is your tourist attraction? Measuring tourist preferences of energetic tourism attractions via an FCEM-AHP and IPA approach. Tourism Management, 54, 309-320.