A Franchise Flashcards
What is needed to set up a franchise?
A license from the franchisor
What key liability does a franchisee assume?
Operational financial risk
What support do franchisors provide?
Market research and training
What is a key advantage of running a franchise?
The franchisee benefits from an established brand and proven business model.
What is a disadvantage of running a franchise?
High start-up costs and ongoing royalties can affect profitability.
What is the role of the franchisor in a franchise?
The franchisor provides the brand, business model, and support, and controls key aspects of the operation.
What is a key restriction for franchisees?
Limited creativity and ability to innovate or alter the business model.
What is the financial responsibility of a franchisee?
The franchisee is responsible for securing funding for the franchise fee, setup costs, and operational expenses.
What economies of scale do franchisees benefit from?
Franchisees benefit from bulk purchasing of supplies and collective advertising efforts.
