Business: Section 1 (Franchises)

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  • Franchises
    • Advantages
      • Less risk as its already an established company.
      • Adverting is done for you by the franchisor.
      • Some franchises train staff for you
    • Disadvantages
      • Dont have as much control over your business.
      • Costs more to set up as you have to pay an initial fee.
      • The franchisor gets a percentage of your profits.
    • Frachisees or Franchisor?
      • Franchisees - The firms selling their products.
      • Franchisor - The product manufacterer (Original)
    • Franchisor - Pros and cons
      • Pros: Increase market share without increasing size of own firm , very profitable
      • Cons: Franchisee can ruin their repuatation.

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