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A franchise fee is a continuous fee paid by the franchiser usually based on a percentage of the franchisee’s gross revenue. True or false?
Vivian Jin
paid a deposit to the franchisor
Layne Kunze
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What are the drawbacks of franchising to franchisees?
franchisees must pay to use the franchiser's name, products, and assistance. Usually franchisees must pay a one-time franchise fee as well as continuing royalty and advertising fees,
In what way is a franchisee's control over the business greatly reduced?
The answer is between the following answers: Most franchisers are located near the franchisee. The franchisees are technically employees of the franchiser. The franchisee is bound by the terms the franchise contract. The franchisee is completely dependent on the franchiser for funding.
What support will franchiser give to the franchise?
The level of support given by a franchisor to its franchisees differs between franchisors and franchise systems. The relationship between a franchisor and its franchisees, including the level of support to be provided to is franchisees, is primarily governed by the terms of the franchise agreement. The franchise agreement should contain specific sections whereby the franchisor's "support" obligations are identified and defined. Typically a franchisors "support" obligations relate to (a) initial training and (b) ongoing support respecting the day-to-day operations of the franchise business, including administrative activities, marketing and management. When entering into a franchise relationship, prospective franchisees must recognize that the terms of their franchise agreement may be "broadly" drafted and that the franchisor's on-going "franchisee support" obligations may not be clearly defined. Accordingly, prospective franchisees must reach potential "franchise opportunities" and engage in a detailed due diligence investigation that should include contacting and speaking with existing franchisees to inquire as to that franchisees satisfaction with the level of support and training that has been provided by the franchisor.
What are key considerations franchisees should entertain in entering into a franchise agreement?
Potential franchisees need to determine not only what protection they will receive for their earnings if they are successful, but also what obligations they will be responsible for if the franchise fails.
What franchise opportunities are there besides fast food?
You can be a franchise owner of a haircutting place such as Supercuts or you can be a franchiser for gas stations. These are generally more expensive than a fast food franchise.
Do Franchisees typically pay the franchiser a monthly or annual fee based on a percentage of sales or profits?
The amount that a franchisee pays to a franchiser varies depending on the franchise. The fees can be monthly or annually. They normally are based off sales, which in turn are based off profits.
What are the drawbacks of franchising to franchisees?
franchisees must pay to use the franchiser's name, products, and assistance. Usually franchisees must pay a one-time franchise fee as well as continuing royalty and advertising fees,
In what way is a franchisee's control over the business greatly reduced?
The answer is between the following answers: Most franchisers are located near the franchisee. The franchisees are technically employees of the franchiser. The franchisee is bound by the terms the franchise contract. The franchisee is completely dependent on the franchiser for funding.
What support will franchiser give to the franchise?
The level of support given by a franchisor to its franchisees differs between franchisors and franchise systems. The relationship between a franchisor and its franchisees, including the level of support to be provided to is franchisees, is primarily governed by the terms of the franchise agreement. The franchise agreement should contain specific sections whereby the franchisor's "support" obligations are identified and defined. Typically a franchisors "support" obligations relate to (a) initial training and (b) ongoing support respecting the day-to-day operations of the franchise business, including administrative activities, marketing and management. When entering into a franchise relationship, prospective franchisees must recognize that the terms of their franchise agreement may be "broadly" drafted and that the franchisor's on-going "franchisee support" obligations may not be clearly defined. Accordingly, prospective franchisees must reach potential "franchise opportunities" and engage in a detailed due diligence investigation that should include contacting and speaking with existing franchisees to inquire as to that franchisees satisfaction with the level of support and training that has been provided by the franchisor.
What is a franchise type of company?
A franchise is a right sold by one person or firm to another which allows the franchise to make a profit by selling goods carrying the franchiser's name. The reputation on the franchiser is an important element in this transaction. By amelia :)
What are key considerations franchisees should entertain in entering into a franchise agreement?
Potential franchisees need to determine not only what protection they will receive for their earnings if they are successful, but also what obligations they will be responsible for if the franchise fails.
What franchise opportunities are there besides fast food?
You can be a franchise owner of a haircutting place such as Supercuts or you can be a franchiser for gas stations. These are generally more expensive than a fast food franchise.
What is a franchise agreement?
The franchise agreement is the cornerstone document of the franchisee--franchiser relationship. It is this document that is legally binding on both parties, laying out the rights and obligations of each.
When your profitable franchise fails simply because other franchisees have failed this is known as the?
Royalty rate
What problems might arise when a potential franchise in the process of evaluating a franchise attempts to consult previous franchisees?
There shouldn't be any problems. It is an appropriate and suggested action when looking at investing in a franchise.
Is franchise limited or unlimited?
Limited Liability because the franchisee just looses the money invested. The great loss is the Franchiser's.
How do you form a franchise company?
There are many ways to go around for turning a business into a franchise or to build a franchise from the start. Once you can guarantee the market can work as a franchise because it has a systemized operating system, can provide a significant return on investment for franchisees, and possess the structure of a franchise company, then you can start the process of registering your business as a franchise.To form a franchise company you have to:Have a legal audit - check for trademarks including, brand name, logos, and property rightsDraft a pilot operation manual - this will guarantee that franchisees follow the franchisor's methods of operationObtain funding - look for loans, special funding from banks or other corporations to start the franchise companyProvide legal documentation - get all permits, licenses, and create your franchise disclosure agreementMarketing - start marketing the opportunity to potential franchisees
