Franchises Flashcards
1
Q
What is a franchisee
A
Legally binding agreement where a large company will set the lights to use their business ideas, name and products to someone who wants this sell up their business
2
Q
What is a franchisor
A
The business who receives loyalty payment for the use of their business idea, name or product
3
Q
What is a royalty payment
A
Yearly fee paid by the franchise to the franchisor to allow them to use their business name
4
Q
Benefits of franchisee
A
Don’t have to build brand up
Trainings ongoing
Marketing done for you
5
Q
Benefits of franchisor
A
Gives support Offers assistance Expands business Less risk Local knowledge
