Franichises for business GCSE

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Franchise
A franchise is a right granted to an individual or group to market a company's goods
or services within a certain location e.g. McDonald's, Subway, and Domino's Pizza.
There are many different types of franchises. There are over 120 different types of
franchise businesses available today, including automotive, cleaning & maintenance,
health & fitness, financial services, and pet-related franchises.
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jjjjjjjjjjjjjj How Franchising Works
If you are thinking about buying into a franchise system, it is important that you
understand exactly how franchising works, what fees are involved, and what is
expected of you from the franchise company. An individual who purchases and runs a
franchise is called a "franchisee." The franchisee purchases a franchise from the
"franchisor." The franchisee must follow certain rules and guidelines already
established by the franchisor, and in most cases the franchisee must pay an ongoing
franchise royalty fee, as well as an up-front, one-time franchise fee to the franchisor.
Franchising has become one of the most popular ways of doing business in today's
marketplace.
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jjjjjjjjjjjjjj The History of Franchising
Franchising began back in the 1850's when Isaac Singer invented the sewing machine.
In order to distribute his machines outside of his geographical area, and also provide
training to customers, Singer began selling licenses to entrepreneurs in different parts
of the country. In 1955 Ray Kroc took over a small chain of food franchises and built it
into today's most successful fast food franchise in the world, now known as
McDonald's. McDonald's currently has the most franchise units worldwide of any
franchise system. Today, franchising is helping thousands of individuals be their own
boss and own and operate their own business. Franchising allows entrepreneurs to be
in business for themselves, but not by themselves. There is usually a much higher
likelihood of success when an individual opens a franchise, since a proven business
formula is in place. The products, services, and business operations have already been
established.
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jjjjjjjjjjjjjj Advantages of Buying a Franchise
Corporate image - The corporate image and brand awareness of the company is
already established. Consumers are always more comfortable purchasing items
from a familiar name or company they trust.
Training - The franchisor usually provides extensive training and support to the
franchise owner.
Savings in time - Since the franchise company already has the business model in
place you can focus on running a successful business.
There is a reason why franchising has been around for decades. It is a great way for
individuals to own and operate their own business.

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