A buyer that uses the name, logo and trading systems of an existing successful business.
Advantages
- Less chance of failing because of brand name
- Franchisor gives advice and training
- National advertising done by franchisor
- Supplies sent to you and already quality cheched
- Franchisor will not open another branch in same area
Disadvantages
- Franchise fee must be paid at the start (McDonalds = $250,000)
- Shared of profits must be paid every year to franchisor
- Local promotions still franchee's responsibilt
- No choice of supplies or what supplies to use
- Reduced control for franchisee as can't change prices or layout branch
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