Franchising Flashcards
1
Q
Franchisor
A
The business that gives franchisees the right to sell its product or service
2
Q
Franchisee
A
A business that agrees to manufacture, distribute or provide a branded product, under licence by a franchisor
3
Q
What does the franchisee get when they buy a franchise
A
An established brand name Training Equipment Ongoing support Access to goods and services Advertising and promotion Operate in an exclusive area
4
Q
Benefits of a franchise
A
Reputation already established Expensive marketing costs covered by the franchise Access to tried and tested products Possibly an established customer base Higher chance of survival Specific support and training provided
5
Q
Drawbacks of a franchise
A
Start up costs can be expensive Royalty payments Complicated application process Lack of autonomy and control Limited flexibility to make your own decisions
6
Q
Why is location important
A
Proximity to competition
Cost
Busy
Access to parking
