Franchises Flashcards
An advantage for the franchiser is…
They are a low-risk form of growth as the franchisee invests the majority of the capital.
An advantage for the franchiser is…
They receives a percentage of all franchisee’s profits for each year called royalties.
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 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 franchisee is…
Industry knowledge and training is provided by the franchiser.
A disadvantage for the franchisee is…
There is very little autonomy over decisions as the franchiser decides on products, store layout and 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.
An advantage for the franchisee is…
The franchisee benefits from national advertisements carried out by the franchiser.
