Franchise

Question 1

What’s the liability and amount of owners of Franchise?

Answer 1

Liability type depends and there may be thousands of owners.

Question 2

What’s the source of finance for Franchises?

Answer 2

Shares and income.

Question 3

What are the advantages of Franchises?

Answer 3

• Increased sales, people know the quality of the product
• Right to sell known product/brand in a certain area without competition
• Reduced risks and capital investment

Question 4

What are disadvantages of Franchises?

Answer 4

• Can’t sell business without approval from the franchise
• Can’t buy stock from cheaper sources
• All businesses are the same.