Franchise's Flashcards
An advantage for the franchiser is……
A low risk form of growth as the franchisee invests the majority of capital
An advantage for the franchiser is….
Receives a percentage of all franchisees profits each year
A disadvantage for the franchiser is….
The reputation of the whole franchise can be tarnished by one poor franchise
A disadvantage for the franchiser is…
Only a share of profits is received rather than all the profits as it would be if they owned each branch
An advantage for the franchisee is…
The franchise is a well-known business with an existing customer base
An advantage for the franchise is….
industry knowledge and training is provided by the franchiser
An advantage for the franchisee is…
The franchise benefits from national advertisements carried out by the franchiser
A disadvantage for the franchisee is…
There is very little autonomy over decisions as the franchiser decided on products, store layout, uniforms etc
A disadvantage for the franchisee is…
Royalties have to be paid each year
A disadvantage for the franchisee is…
There are high initial start up fees
