Case Study: Jasmis Fast Food by Lily Galiza

Full Control and Decision-Making

lezgaliza — 2025-09-25 19:40:35 UTC

As a sole trader, the founder of Jasmis would have full control over all business decisions. This means he could shape the menu, opening hours, and company image as he wished. Many entrepreneurs value this independence, but it does mean all the pressure is on one person.

Risks and Liabilities

lezgaliza — 2025-09-25 19:40:35 UTC

Operating as a sole trader puts all risks and financial liabilities on the owner. If the business struggled or faced legal issues, the founder’s personal assets could be at risk. This option can be risky, especially with the fast food industry's competition in Bahrain.

All Profits Go to the Owner

lezgaliza — 2025-09-25 19:40:35 UTC

One big advantage: all profits belong to the founder. No need to share with others. However, this also means dealing with business losses alone.

Simpler Setup and Management

lezgaliza — 2025-09-25 19:40:35 UTC

Setting up as a sole trader is straightforward in Bahrain and requires less paperwork compared to partnerships or companies. Managing taxes and accounts is also simpler.

Shared Responsibilities

lezgaliza — 2025-09-25 19:40:36 UTC

In a partnership, the founder would have shared responsibilities. From managing the kitchen to financial planning, each partner could specialize and contribute different skills.

Pooling Capital and Ideas

lezgaliza — 2025-09-25 19:40:36 UTC

Partnerships allow pooling of capital, which could help the business expand faster. Multiple partners bring new ideas to the table, which can spark innovation.

Sharing Profits (and Losses)

lezgaliza — 2025-09-25 19:40:36 UTC

Profits are split between partners, meaning less for each individual. However, this also means risk and loss are shared too, which might help in tough times.

Disagreements and Decision-Making

lezgaliza — 2025-09-25 19:40:36 UTC

While partnerships can bring strength in numbers, disagreements about business direction, finances, or workload can occur. An official partnership agreement is essential in Bahrain to avoid conflicts.

Case Study: Jasmis Fast Food

lezgaliza — 2025-09-25 19:42:03 UTC

Jasmis is one of Bahrain’s most famous fast-food chains today. But when it first started, the founder had two choices:

Run the restaurant alone as a sole trader, keeping full control and all profits but carrying all the risks.

Form a partnership, sharing capital, responsibilities, and ideas with others, but also sharing profits and facing possible disagreements.

What are two advantages and two disadvantages if Jasmis had started as a sole trader?

lezgaliza — 2025-09-25 19:42:50 UTC

Why might a partnership have helped Jasmis grow faster into a chain of restaurants?

lezgaliza — 2025-09-25 19:43:09 UTC

How should the founder decide between sole trader and partnership? Which would you recommend, and why?

lezgaliza — 2025-09-25 19:43:28 UTC