Over the last forty years the sandwich shopBlimpie has undergone many forms of ownership to grow and mature. Starting as a partnership, the struggling company then changed into a sole proprietorship. Eventually the owner of Blimpie, Tony Conza, changed again to a franchise operation. The franchise operation helped his business along. The new franchises worked for Conza for many reasons. With an established product already on the market, they were now able to get management and investor assistance. Also with a nationally recognized name they were able to expand Blimpie into different areas. With these advantages the failure rate of opening a new store dropped dramatically.
Although Conza still ran a private ownership with 150 franchises, he still needed to do something to add more capital. In 1983, the owner of Blimpie went public changing to a corporation. They were now able to raise extra funds by selling stock to the public.
With extra funds they were able to grow in size. The change in ownership limited Conza's liability if the business were to hit some adversity. Being its own separate entity now gave Blimpie perpetual life. If the owner died the company would keep going. With the company on the rise the sandwich shop was now able to attract more talented employees. The separation of ownership and management was set, and Blimpie was on the rise. However, changing to a corporation had its downfall to. There was an initial cost and extensive paperwork Conza had to go through to incorporate. Not only did the owner of Blimpie have to file two tax returns, but also received double taxation on net income, and then on the shareholder's dividends.
As the company grew up until 1997, the sandwich owner wanted to raise profits by finding another food brand that...