Wireless Security Limited ( Zsl ) Is A Home And Commercial Security Company

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Zenith Security Limited (ZSL) is a home and commercial security company founded with the sole purpose of providing security services in Halifax. In order to continue the company 's expansion, ZSL is planning on expanding into Ontario and Quebec. Unlike atlantics Canada where Zenith owns and operates all of its locations in the other provinces its purpose is to become a franchiser and thus allow local entrepreneurs to purchase rights to be Zenith security provider in their communities. In order to ease the strategic shift Paolo Santiago the sole shareholder of the company has hired Jason Armand early in the fiscal year as the manager of the 2 provinces. Jason 's inclusion in the project has so far led to the opening of 15 franchises throughout Ontario and Quebec during the year. Furthermore 5 locations have also been opened and are operated by the company alone. Issues There are several issues associated with the company after analyzing the case. Zenith Security Limited, as was previously mentioned expanded throughout Canada. Because the company switched to franchising, there are issues attached to revenue recognition. The group agrees with the $225 000 cost of acquiring a franchise, however, the installments for collection poses a problem for the company. Only $75 000 is collected within six months of signing the franchise agreement. This leaves a bulk of the cash ($150 000) to be collected a year and half later. This is a problem particularly because Zenith has no

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