Franchising (franchiser)

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  • Created by: emily_284
  • Created on: 01-01-22 13:38

Franchising (franchiser)

Advantages

  • a low risk form of growth as franchisee invest the majority of the capital
  • receives a percentage of the franchisees profits each year (known as royalties)

Disadvantages

  • the reputation of the whole franchise can be tarnished by one poor franchisee
  • only a share of profits is received rather than all profits as it would be if they owned each branch

Evaluation

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