Franchises

• What is the focus of section 1 in the study material?

  The nature of the business objective 6
• What was covered in the previous session regarding objective 6?

  Sole trader versus partnership and companies
• What type of business model is being discussed today?

  Franchise
• What does a franchise allow a local business to do?

  Use an international brand
• Who owns the brand in a franchise?

  The franchisor
• What is the relationship between franchisors and franchisees?

  They are separate companies
• What governs the relationship between franchisors and franchisees?

  Franchise license and contract
• What is a franchisor?

  A person that owns the brand
• What is a franchisee?

  A person who acquires rights to use the brand
• Name some popular franchise brands mentioned.

  KFC, Subway, McDonald's
• Why is KFC used as an example in the discussion?

  It is widely found across the Caribbean
• What does a franchise allow a local person to do?

  Acquire rights to use the franchisor's brand
• What is a key difference between a franchise and a multinational?

  A franchise is a local business using a brand
• What is an example of a multinational company?

  Microsoft
• How are franchises and multinationals different in terms of operations?

  Franchises are separate entities using a brand
• What governs the operations of a franchise?

  License agreement and contract
• What happens if a franchisee violates the contract?

  They may lose the right to use the brand
• Name some examples of franchises besides fast food.

  Hilton, UPS, Hyatt
• What are some advantages of being a franchisee?

  Use an international brand and receive training
• Why is startup fast for a franchisee?

  They receive support and established branding
• What type of training do franchisees receive?

  Advice on operations and branding
• What is a significant advantage of using an international brand?

  Brand recognition and established customer base
• What is a disadvantage for franchisees?

  Regular payments to the franchisor
• What do franchisees lose when they join a franchise?

  Some sense of independence
• What is the role of the franchisor in a franchise?

  To provide the brand and support
• What is the relationship between a franchisee and the franchisor?

  Franchisee pays for rights to use the brand
• What is the significance of the franchise license?

  It outlines the rights and responsibilities
• How does a franchise benefit customers?

  Provides recognizable brands and consistent quality
• What is a potential risk for franchisees?

  Health violations can lead to losing rights
• What is the importance of following the franchise contract?

  To maintain the right to use the brand
• What is a common misconception about franchises?

  They are the same as multinationals
• What is the role of training in a franchise?

  To ensure consistency and quality in operations
• How do franchises differ in terms of ownership?

  Franchisees own their businesses, not the brand
• What is a key benefit of established branding for franchisees?

  Attracts customers familiar with the brand
• What is the significance of the franchise agreement?

  It defines the terms of the franchise relationship
• What is a disadvantage of being a franchisee regarding independence?

  Franchisees must adhere to franchisor guidelines
• What is a potential challenge for franchisees in terms of payments?

  Regular payments can affect profitability
• How does the franchise model support local businesses?

  By providing access to established brands
• What is the impact of brand recognition on franchise success?

  It significantly boosts customer trust and sales
• What is the role of the franchisor in training franchisees?

  To provide essential operational knowledge