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  • Franchises
    • occurs when a franchisor sells and existing business idea to a franchisee
    • Advantages of buying a franchise
      • idea already exists - reduces risk of setting up  a business
      • brand name may be well established - easier to get customers early on
      • franchisor provides support, training and existing methods
      • other franchisees can share ideas
      • some costs can be shared between the franchisees
    • Disadvantage
      • if theres a problem with one of the franchisees, this will reflect badly on other franchisees
      • may be disputes over balance of power between franchisor and franchisee
      • can only sell produtcts of the franchise


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