Franchises And Entreprenuers Flashcards
What is a franchisee?
What is a franchisor?
What a franchise?
The entrepreneur - the person buying the franchise
The business owner - providing the franchise
Franchise - the right to run a business over someone else’s name who already owns the business
What are some benefits of a franchise?
Training - Given to the franchisee by the franchisor
Equipment - the business is already established and has all the necessary equipment
Support - guidance given by the franchisee to ensure the job is getting done correctly
What are some disadvantages of a franchise?
The upfront cost can sometimes be expensive and/or unaffordable
The franchisor can stop the deal at anytime without warning or compensation
Profit and royalties can be taken away by the franchisor
Why is location an important factor when setting up a business?
It determines the types and amounts of customers that a business will expect
What is an entrepreneur?
A person who owns a business, runs it and takes risks
What is an enterprise?
A willingness by an individual or a business to take risks, show initiative and undertake new ventures
