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- established brand.

- promotions ect.

- less risk.

- get advice & guidance.

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Q: What are the disadvantages of a franchisor?
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What are the advantages and disadvantages of becoming a franchisor?

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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'.


What is the purpose of a franchisor business?

known solutions, needs only sell


The share of profits or percentage of sales a franchisee pays to a franchisor?

Royalty


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


Advantages and disadvantages of franchising from the point of view of franchisor?

advantage for the comapany is to grow without using it's cash, credit, or dilution of stock and receive ongoing income stream without the associated G & A costs of expansion disadvantage is a somewhat loss of direct operational control


What are some examples of a franchisor?

a person who starts a business a determined business man or woman


What are the advantages and disadvantages of franchising?

The advantages of franchises include the following; Getting assistance from financial institutions Training of personnel Ability to access market research They are able to access standard stock control systems The disadvantages include; Franchisor may not renew the contract at the end of the term Buying a franchise requires payment Long decision-making processes Limited territory within which to operate