A FRANCHISE is often a successful business which is owned by a FRANCHISOR, who then sells and grants the legal rights of selling it's products and services to a FRANCHISEE
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BENEFITS FOR FRANCHISEE
Lower risk as you trade under an established brand name. Franchisor provides advice, support and training. Easier to raise money as a more recognised business
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DISADVANTAGES FOR FRANCHISEE
Costs may be high. Have to pay royalty payment (to use the franchise name) every year. Less independence for the owner in decision making
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BENEFITS FOR FRANCHISOR
Regular financial rewards (royalty payments). The franchise grows, perhaps internationally. Franchisor controls quality, marketing and all major decisions
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DISADVANTAGES FOR FRANCHISOR
Reputation may be damaged
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Other cards in this set
Card 2
Front
Lower risk as you trade under an established brand name. Franchisor provides advice, support and training. Easier to raise money as a more recognised business
Back
BENEFITS FOR FRANCHISEE
Card 3
Front
Costs may be high. Have to pay royalty payment (to use the franchise name) every year. Less independence for the owner in decision making
Back
Card 4
Front
Regular financial rewards (royalty payments). The franchise grows, perhaps internationally. Franchisor controls quality, marketing and all major decisions
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