Franchising Flashcards
0
Q
Who is the franchiser and the franchisee in the agreement?
A
Franchiser : is the business owner
Franchisee : is the individual who opens the store.
1
Q
What is a franchise?
A
A franchise is a branch or company which allows the rights to people to sell their goods.
2
Q
Why do businesses allow this?
A
Because it allows them to expand and have another input source of money.
3
Q
What does the franchisee agree to this?
A
They can use the brand name, they are provided with training and equipment, they are able to operate in an exclusive area, and advertising is all sorted.
4
Q
What are the draw backs to opening a franchise?
A
start-up cost can be expensive, you have to pay a certain amount to the owner, less control over decisions.
