Franchises Flashcards
0
Q
Give 4 examples of a franchise
A
Toni & Guy
The body shop
Subway
Burger King
1
Q
What is a franchise?
A
A franchise is where a business sells their rights to another company/business to use their name, product or process
2
Q
What is a franchisee?
A
A franchisee is the person who asks to become a franchise
3
Q
What is a franchisor? (And give an example)
A
A franchisor is the business ( eg. The body shop )
4
Q
Give advantages of being a franchisee
A
- less risk
- easy start up
- national marketing
5
Q
Give disadvantages of being a franchisee
A
- must pay a % of profits (royalties)
* no flexibility, must follow franchise model
6
Q
What are the benefits of opening a franchise?
A
- No need to think of your own idea
- Less risk
- Easy start up
- All advertising is done for you
7
Q
Give advantages of a franchisor
A
- Keep control
- Business grows
- Regular royalty payments
8
Q
Give the disadvantages of being a franchisor
A
- could receive all profits if set up alone
* reputation is reliant on others
