franchising

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  • Created by: katiejw24
  • Created on: 11-05-17 11:46
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  • franchising
    • franchisor
      • the business that gives the franchisee the right to sell its products or service
      • more people selling their products
      • royalties are paid by franchisee
      • high start up costs so gain high income from franchisees buying into the franchise
      • still has total controll over what happens within the store
      • easier to expand as franchisees buy into creating a store
    • franchisee
      • a business that agrees to manufacture, distribute a branded product under licence by the franchisor
      • gets an established brand name
      • training is provided
      • equiptment is provided
      • on going support is given
      • access to goods and services
      • advertising and promotion is provided
      • operate in an exclusive area

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