Unscramble these businesses Mdlc Donas Hoalidyn Ion Sbartkucs

Unscramble these businesses • • • Mdlc. Donas Hoalidyn. Ion Sbartkucs Donomizziesa Waybus Potoffscie • • • Mc. Donalds Holiday Inn Starbucks Dominoes Pizza Subway Post Office What do these businesses all have in common?

Franchises A franchise is a marketing arrangement allowing another business to trade in the same style as an existing business

Franchises • An established business (the franchisor) offers for sale to other businesses or individuals (the franchisee) the rights to use its products, services or logos (usually in a specific geographical area). • Usually there is: – An initial set up fee (can be costly) – A % of sales turnover is paid annually (royalty)

Key terms • Franchisor – The person or business who offers to franchise to other businesses its trading methods, products and business logos • Franchisee – A person or business buying the franchise • Royalty – A payment made to the franchisor based on the sales turnover of the franchise

Assessing a franchise opportunity • • • Location of franchise Successes of other franchises What the business is / how it operates Competition in same market sector How long the franchisor has been in business – and how financially secure it is

• Training and support offered. • Conditions and restrictions (I. e. how long is agreement, how it is run) • Initial and ongoing costs – I. e. Mc. Donalds initial cost is between £ 150, 000 and £ 500, 000

Who wants to be a millionaire franchising quiz • www. quia. com/rr/176871. html