0
What else can I help you with?
What is a franchisor?
A franchisor is a company that sells the right to use its name and/or operating systems to independent business owners. One of the best known franchisors is McDonald's.
What type of support is provided by the franchisor?
they dont get any
What is the seller of a franchise called?
The seller of a franchise is called a 'franchisor'.
The share of profits or percentage of sales a franchisee pays to a franchisor?
Royalty
What is the purpose of a franchisor business?
known solutions, needs only sell
Which best describes what a franchise does?
A franchise ensures wide distribution of a franchisor's trademark, business model, and goods. A franchise protects a franchisor against companies imitating its trademark, business model, and goods. A franchise stops franchisees from using a company's trademark, business model, and goods. A franchise limits the use of a franchisor's trademark, business model, and goods.
Is the franchisee required to purchase equipment and supplies from the franchisor or other suppliers?
yes
Is the franchisee required to purchase equipment and supplies from the franchisor and other suppliers?
yes
How much room for negotiation does a new franchise owner have in relation to the parent company?
very little the agreement is written for the benefit of the franchisor all they are obligated to do is to provide use of their brand and trademarks and propriatary systems, and initial training there may be some flexibility in the design of the territory, depending on the franchisor's circumstances, but not in the fees, royalities, term of agreements, etc
What are the disadvantages of a franchisor?
- established brand. - promotions ect. - less risk. - get advice & guidance.
What are some of the dangers of becoming a franchisor?
There are many risks when one becomes a franchiser. This includes high upstart costs, commercial property risks and risks associated with personal liability.
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
