Franchising Flashcards
What is meant by the term franchiser
A franchisor is the business that gives franchisees the right to sell its products or services
What is meant by the term franchisee
A franchisee is a business that agrees to manufacture distribute or provide a branded product under license by a franchisor
What is the point of a franchise
To expand the business and establish it through licensing the right for entrepreneurs to set up their own business using the name and selling its products.
in return they gain a fee or share of the sales revenue
What does a franchisee get when starting up as a franchise
A franchisee gets ongoing support and training. Also they gain yes dubbist brand name and access to goods and services. There is no need to advertise or promote the business as usually franchises are world known
What are the benefits of setting up as a franchise
In the long run there is a higher chance of survival through brand image and reputation which is already established. Also expensive marketing costs are all covered by the franchise its self
What are the drawbacks of a franchise
The start-up cost for a franchise can be expensive and with a complicated application process, it makes it difficult to set up a business. Also there is limited flexibility to make your own decisions and as a manager you lack control of the business
Why is choosing the perfect location for a franchise important
When setting up as a franchise you need to think about many aspects of the location such as access to parking and how busy the passing trade is. Also you need to look at the cost of premises and the proximity to competition in the area
What is a franchise
I franchise is right given by one business to another business just so good so services using its name. the businesses that buy into a franchise remain as independent businesses
