FRANCHISES

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FRANCHISE? DEFINITION?
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 by a franchisee.
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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

Preview of the back of card 3

Card 4

Front

Regular financial rewards (royalty payments). The franchise grows, perhaps internationally. Franchisor controls quality, marketing and all major decisions

Back

Preview of the back of card 4

Card 5

Front

Reputation may be damaged by a franchisee.

Back

Preview of the back of card 5

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