Franchises and Franchisees ✔️

Question 1

Franchiser

Answer 1

A franchiser is a company that grants the right to use its brand, products, services, and operating systems to independent business owners (franchisees) in exchange for a fee and ongoing royalties.

Question 2

Franchisee

Answer 2

A franchisee is an individual or company that operates a business using the trademark, products, services, and operating systems of a franchiser in exchange for a fee and ongoing royalties

Question 3

Factors affecting the use of a franchisee to a business

Answer 3

• cost e.g. Franchise fees, royalties
• control
• market demand
• competition
• legal considerations
• brand recognition
• opperating system of the business
• support and training costs

Question 4

The impact and importance of franchising to the stakeholders of a business

Answer 4

• franchisee : franchising offers the opportunity to own and operate a business with the support and resources of a larger, established company.
• franchiser : franchising can provide a means of expanding the business and increasing revenue through franchise fees and royalties.
• customer : franchising can provide access to consistent and reliable products and services.
• supplier : it can provide a larger market for their products and services, as well as the opportunity to establish relationships with multiple franchisees.
• employees : it can provide job stability and opportunities for career advancement within the franchise system.
• investors : it can provide an opportunity to invest in a proven business model with a lower risk of failure compared to starting a new business from scratch.

Question 5

Co-operative

Answer 5

A organization which is owned and run jointly by its members, who share the profits or benefits