TYPES OF BUSINESS Chapter 2 Mr Singh FRANCHISE

TYPES OF BUSINESS Chapter 2 Mr. Singh

FRANCHISE • Written contract between the franchise seller and buyer • Franchisee is allowed to use the franchisor’s name, products, and packaging • Eg. Mc. Donalds • For a fee, the franchisor provides support to the franchisee in the areas of financing, operations, human resources, marketing, advertising, quality control, etc.

ADVANTAGES & DISADVANTAGES Advantage • You already have brand recognition • You know there already is a market for your product • Franchisees have personal ownership of their business • Franchisor helps with training, management Disadvantage • Very expensive to buy • Have to pay an ongoing fee (or royalty) to the franchisor • Can only buy products from the franchisor • Have to follow certain rules and regulations

GROWTH IN CANADIAN BUSINESS Changing Technology • Over the last 150 years we’ve seen the creation of railways, automobiles, airplanes, motion pictures, computers and internet • Technological Revolution – New technology has changed the way people do business • How has it? Information Age • Information can give you a competitive edge • Information technology such as laptops and cell phones give employees fast access to information • How does Canada Post use Information Technology?

GROWTH IN CANADIAN BUSINESS Increased Globalization • Information age and communication technology have reduced the impact of the geographic barriers • Globalization is when economies have been integrated • Doing business internationally is the simple way to describe globalization • Globalization has increased competition for markets • Globalization has opened up customers and businesses to not just sell in their domestic market but international as well

GROWTH IN CANADIAN BUSINESS Growth of Small Business • • • Small business is independently operated (normally 1 or 2 people) Not dominated in its field Meets certain size limits in terms of employees and annual sales Small businesses have less than 50 employees Small businesses tend to develop a close relationship with their customers Examples of Small businesses include: Dance Studio, Youth Sports, and………. Coach B Training!

GROWTH IN CANADIAN BUSINESS Home-based Small Business • Home based businesses are considered the fastest form of small business • Factors that help make home business possible are: • Growth of information technology • Growth of a service business • Disappearance of many traditional jobs • People wanting to be their own boss or to change their lifestyle

GROWTH IN CANADIAN BUSINESS Growth of the service sector • Service sector has had the most significant growth in Canada • One reason for growth is that Canadians have more money and less time than they had 50 years ago • People are willing to pay others to care for their children, to prepare and serve their food, to do their accounts, or even to wrap presents • Let’s talk about a successful service business that exists today that may not have existed 50 years ago