franchise

Question 1

what is a franchise?

Answer 1

a franchise is a business based upon the use of brand names, promotional logos and trading of an existing successfull business

Question 2

3 advantages of franchisee

Answer 2

• the chances of business failure is reduced because a well known product is being sold
• the franchisor pays for advertising
• training and management is provided by the franchisor

Question 3

3 disadvantages of franchisee

Answer 3

• less independence than operating a non franchised business
  -may be unable to make decisions that would suit the local area
• license fee must be paid to the franchisor and possibliy a percentage of annual