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Is the franchisee required to purchase equipment and supplies from the franchisor or other suppliers?
yes
What is the purchaser of a franchise called?
The purchaser of a Franchise is called a Franchisee, and the person who grants the Franchise is called the Franchisor.
How does the franchisor make a profit?
The Franchisor makes a profit form the initial franchise fee paid by the franchisee to secure the franchise. Continuing profit is then made from ongoing royalty fees which are based on turnover of the franchised outlet on an annual basis. Profit is also made from the supply of goods or services to the franchisee from bulk buying discounts gained by the franchisor when central buying contracts are in place. The franchisee gains continuity of supply and consistency of quality of goods and still benefits from a lower price generally than they could negotiate individually.
How are the profits of a franchise business distributed?
franchisee gets all of it, apart from a small percentage of the revenue which is paid to the franchisor on a weekly, monthly and annual basis
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?
paid a deposit to the franchisor
The share of profits or percentage of sales a franchisee pays to a franchisor?
Royalty
Is the franchisee required to purchase equipment and supplies from the franchisor and other suppliers?
yes
Is the franchisee required to purchase equipment and supplies from the franchisor or other suppliers?
yes
Why is a franchising such a fast growing form of retail organizations?
Franchising also allows for increased distribution of a product. Franchisee's money expands the business while the franchisor collects initial fees and royalties, creating a successful business for the franchisee and brand expansion for the franchisor
What is the purchaser of a franchise called?
The purchaser of a Franchise is called a Franchisee, and the person who grants the Franchise is called the Franchisor.
How does the franchisor make a profit?
The Franchisor makes a profit form the initial franchise fee paid by the franchisee to secure the franchise. Continuing profit is then made from ongoing royalty fees which are based on turnover of the franchised outlet on an annual basis. Profit is also made from the supply of goods or services to the franchisee from bulk buying discounts gained by the franchisor when central buying contracts are in place. The franchisee gains continuity of supply and consistency of quality of goods and still benefits from a lower price generally than they could negotiate individually.
How are the profits of a franchise business distributed?
franchisee gets all of it, apart from a small percentage of the revenue which is paid to the franchisor on a weekly, monthly and annual basis
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?
paid a deposit to the franchisor
Who owns a franchise?
A Franchise is a business established or operated under an authorization to sell or distribute a company's goods or services in a particular area, and consists of a Franchisor, and a Franchisee, whereas the Franchiser is the company which or person who grants franchises, and the Franchisee is someone who holds a Franchise.
What is a franchise owner?
A Franchise Owner, is a Franchisee - a person who purchases the rights of the business from the Franchisor, or the Founder of the Business in other words, and pays ongoing royalty's based on a percentage of Gross Sales, such as owning a McDonald's Franchise for instance.
What is a business franchise?
A franchise is a small business, which operates under the name of a larger corporation ie. many McDonalds restaurants are owned by a local company (known as the franchisee), which often will own several restaurants in an area. The franchisee operates the restaurant with the benefit of advertising and name recognition from the franchisor (for example the main McDonalds Corporation). The franchisor will receive payment from the franchisee in accordance with the franchise agreement.Your question in general, equates to a single Franchise, whereas Franchise programs are all different. It depends on what kind of Franchise are you interested in? A Business Franchise, a Restaurant Franchise, or a Work from Home Franchise? Then you will have a totally different question, such as "How much does it cost to own a McDonald's Franchise?"
How does a franchise operate?
The franchisor allows franchisee to use its brand or names.But it controls continously on franchisees that they must follow the same standard of operation of the store.It sends assistances to franchisees to help them accounting and purchasing system.Franchisees need to pay a fixed periodable fee to franchisors for trade mark patent,promotional and advertising expenses and method pf operating of the business. The advantage of franchise is that franchisor can expand its shops in a relatively short period of time.Franchisees can learn the way they operate from franchisors and make cost-effective operation by bulk purchasing,effective advertising and promotion of stores.
