All profits need to be shared with the Franchiser, a franchisee buys the right from a franchisor to copy a business format a business format and a franchisee doesn´t restrict your ability to introduce changes to the business YOU MIGHT ALSO LIKE... THIS SET IS OFTEN IN FOLDERS WITH...
20) There are two main risks in purchasing a franchise. First, that of the franchiser's experience and business system, and second: A) the brand name recognition of the franchise.
A) traditional areas of franchising, where costs are from $2,500 to $250,000. B) innovative, nontraditional franchisers with fresh approaches. C) gas stations and fast foods. D) hotel/motels and retail outlets. B) innovative, nontraditional franchisers with fresh approaches.
A franchisee can gets more recognisition and more customers. The risk of business failure is very low because you have help from a franchise because its famous and succesful. No prior experience is needed because you will be getting getting training sections and banks are more likely to lend money because the business is popular and have lots of money and they can repay it because is a very popular business. Eg - McDonalds
The risk of business failure is very low because you have help from a franchise because its famous and succesful. No prior experience is needed because you will be getting getting training sections and banks are more likely to lend money because the business is popular and have lots of money and they can repay it because is a very popular business. ...
The company that allows an individual (known as the franchisee) to run a location of their business.
All profits need to be shared with the Franchiser, a franchisee buys the right from a franchisor to copy a business format a business format and a franchisee doesn´t restrict your ability to introduce changes to the business
Unfortuanely, a franchisee have to buy the franchise, pay management service fees, there are restrictions on how you can run the business and all profits are usually shared with the franchisor.
the Uniform Franchise Offering Circular, one format for the disclosure document which provides information about the franchiser and franchise system to the prospective franchisee
a licence that describes the relationship between the franchiser and franchisee including use of trademarks, fees, support and control
the legal, written contract between the franchiser and franchisee which tells each party what each is supposed to do
the franchise is licensed by the parent company to produce and distribute its products, using supplies bought from the franchiser