Types of Retail Businesses VOCABULARY In your notebook

Types of Retail Businesses

VOCABULARY In your notebook, please copy down these vocabulary words leaving a space for the definition and notes. 1. 2. 3. 4. 5. 6. 7. 8. 9. Corporation Entrepreneur Franchisee Franchisor Limited Liability Ownership Partnership Sole Proprietorship 10. Stockholders 11. Store Chain 12. Unlimited Liability

THINK ABOUT SOME OF THE PLACES OF BUSINESS WHERE YOU SHOP.

NOW CONSIDER WHO OWNS THE BUSINESS Some businesses are owned by local merchants, others by large national chains, and others by international business conglomerate. The types of business ownership vary from the very small, one-owner business to the huge corporation with thousands of stockholders as owners.

Selling without the use of a retail outlet, distribution, broker or wholesale or any other form of middle person.

• Start up cost $5 - $1, 000 • Work from home • Almost no risk

Also considered a MLM Direct Sales - is a marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit.

Direct personal presentation, demonstration and sales of product service.

JAFRA COSMECTICS INTERNATIONAL In 1956, Jan and Frank Day founded Jafra out of their home in Malibu, CA. (PARTNERSHIP). They wanted to create a company where a woman could be seen for her true value. Today Jafra is a DIRECT SALES Company, established 50 years ago. Jafra Cosmetics International is a worldwide leader in the skin care and beauty industry, with an international network of nearly 400, 000 women in 22 countries. http: //www. mlm-thewholetruth. com/mlm-companies/jafra/

SOLE PROPRIETORSHIP • Unincorporated Business that is owned by one individual y ers r e f v wn o s s ee he o risk f p ll t. u e s t h t a t r e Sta s are es all l ass l e tak a i t i r l bi der s fo ife a i L r un nes d L ility e si mite Liab n u Li ted Ow the b i m i l Un : Exa le mp ’ Y D AD D BIG IZZA P S

In-N-Out Burger History In 1948, the first In-N-Out Burger was founded by Harry and Esther Snyder in Baldwin Park. Harry's idea of a drive-thru hamburger stand where customers could order through a two-way speaker box was quite unique. Harry's idea caught on and California's first drive-thru hamburger stand was born. http: //shop. in-n-out. com/history. aspx

SOLE PROPRIETORSHIP The current owner is Lynsi Snyder, the only grandchild of the Snyders.

PARTNERSHIP • Unincorporated business organization in which multiple individuals participate in ownership. • Partners have unlimited legal responsibility of debts and unlimited liabilities. • Start-up costs are split among partners. (May vary) • All profit is divided by all owners • Limited life

PARTNERSHIP …a business owned by two or more persons who combine their capital, experience and ability in order to share their risk of loss and their profit.

Stater Bros. Markets is a privately own supermarket chain, based in San Bernardino, California. Founded in Yucaipa, California in 1936 by brothers: Cleo Leo, and Lavoy Stater. As of 2014 Stater Bros. Market consists of 168 stores. TODAY Stater Brother Market is a Sole Proprietorship.

HISTORY OF STATER BROTHERS MARKET Stater Bros. traces its beginnings back to a small grocery store on West Yucaipa Boulevard in Yucaipa, California. Twin brothers Cleo and Leo Stater purchased the original Stater Bros. Market with a $600 down payment and opened for business on August 17, 1936. By the close of the 1940’s, the Stater brothers, joined by their younger brother Lavoy, had expanded the chain to 12 locations, with 225 employees. During the 1950’s, Stater Bros. Markets had almost doubled to include 23 locations in the three counties of San Bernardino, Riverside and Los Angeles. PARTNERSHIP

In 1968, the Stater brothers sold their interest in the Company, and Stater Bros. Markets became a division of Petrolane Incorporated. (CORPORATION) By the end of the decade, Stater Bros. Markets totaled 35 locations in the four counties of San Bernardino, Riverside, Los Angeles and Orange.

In 1981, Stater Bros. launched its first television advertising campaign. In 1986, Jack Brown, in addition to being President and Chief Executive Officer, was elected Chairman of the Board. In 1988, Jack Brown announced that Stater Bros. Markets had reached a sales volume in excess of one billion dollars for the first time. Coming into the 90’s there were over 100 stores.

1986 A four-month battle for control of Stater Bros. is concluded with La Cadena Investments winning on all issues, and Jack Brown is elected Chairman of the Board. 1987 Stater Bros. becomes a private company. SOLE PROPRIETORSHIP

Stater Bros. is the largest privately owned Supermarket Chain in Southern California and the largest private employer in both San Bernardino County and Riverside County, with annual sales in 2013 of $3. 9 billion. The Company currently operates 168 Supermarkets, and there are nearly 18, 000 members of the Stater Bros. Supermarket Family. SOLE PROPRIETORSHIP

Distribution Center is the largest under-one-roof Supermarket Distribution Center in America and provides Stater Bros. with, what management believes will be, America’s most efficient system, which includes the shortest average mileage for store deliveries of 41 miles. http: //www. staterbros. com/bottommenu/company/history. aspx

A form of business organization in which a firm already has a successful product or service (the franchisor) enters into a continuing contractual relationship with the franchisee.

• • • Start up fee $350, 000 + Royalties paid out from profits to franchise. Low Risk – If you buy into a strong franchise Unlimited liability Franchise will train you and they do all the background work.

We Have Always Been A Franchising Company Mc. Donald's has always been a franchising company and has relied on its franchisees, our Owner/Operators, to play a major role in the System's success. Mc. Donald's remains committed to franchising as a way of doing business.

Financial Requirements/Down Payment An initial down payment is required when you purchase a new restaurant (40% of the total cost) or an existing restaurant (25% of the total cost). . Service fee: a monthly fee based on the restaurant's gross sales (currently a service fee of 4. 0% of monthly sales) Royalties

Generally, we require a minimum of $300, 000 of non-borrowed personal resources to consider you for a franchise.

Financing Mc. Donalds require that the buyer pay a minimum of 25% cash as a down payment toward the purchase of a restaurant.

CORPORATION • The most common form of business organization. • Consisting of a person or group of people who become shareholders. *Start up fee’s padded by shareholders *Limited liability *Limited risk

The History of Best Buy 1966: Richard M. Schulze and a partner establish Sound of Music, Inc. , a home and car stereo store in St. Paul, Minnesota. 1983: Company changes its name to Best Buy Co. , Inc. 1985: Company goes public. 1987: Best Buy gains a listing on the New York Stock Exchange; revenues reach $239 million from 24 stores. Today: Best Buy is the world’s largest multi-channel consumer electronics retailer with stores in the U. S. , Canada and Mexico. http: //investors. bestbuy. com/phoenix. zhtml? c=83192&p=IROL-IRhome

Limited Liability Company (LLC) The limited liability company (LLC) is a relatively new form of business organization. This business structure is a hybrid of a partnership and a corporation. Its owners (called members) are shielded from personal liability, and all profits and losses pass directly to the owners without taxation of the entity itself.

WHAT BUSINESS FIT YOU? • Do you like working from home? (Direct Sales Company) • Do you like having all the profit? (Sole Proprietorship) • Would you like to share your success with another person? (Partnership) • Do you like the safe risk of a Franchise? • Do you want to be a part of a Corporation? WHAT ARE YOUR LIFE PLANS? ?