Franchise

Question 1

Define franchise

Answer 1

This is a method where one business(franchiser) grants another business(franchisee) legal permission to sell products and services under the franchisers name/trademark

Question 2

Advantages of franchises

Answer 2

> Allows franchisee to gain start up costs easier as they are provided by the franchiser
Marketing strategies would already be provided by franchisor
Training, research and development would be provided by the franchisor

Question 3

Disadvantages of franchising

Answer 3

> Franchisees must adhere strictly to the franchisors way of operating
Franchisees would be limited to only products & services that the franchisor offers
Franchisees would have to pay an up-front fee and an ongoing royalty for the grant of the franchise