Franchises

Created by

Matthew Hurst

Cards (72)

What does a franchise allow a local business to do?
Use an international brand
Who owns the brand in a franchise?
The franchisor
How are franchisors and franchisees related?
They are separate companies
What is an example of a popular franchise brand mentioned?
KFC
Where can KFC be found according to the material?
Across the Caribbean
What is a key difference between a franchise and a multinational?
A franchise allows local use of a brand
Who acquires the rights to use the brand in a franchise?
The franchisee
What is a multinational company?
A company with branches in different areas
What governs the relationship between the franchisor and franchisee?
Franchise license and contract
What are some examples of franchises mentioned?
Pizza Hut, McDonald's, Hilton
What are some advantages of being a franchisee?
Use an international brand and receive training
Why is starting a franchise considered fast?
It provides a ready-made business model
What type of support do franchisees receive from franchisors?
Advice and training
What is McDonald's University?
A training program for franchisees
What is a significant disadvantage for franchisees?
Regular payments to the franchisor
What is a significant advantage of using an established brand for a franchise?
It is internationally recognized.
Why do tourists prefer franchises like KFC?
They know what to expect from the brand.
What is a disadvantage of being a franchisee?
You lose some independence in operations.
What happens if a franchisee violates the license agreement?
They may lose the right to use the brand
What must franchisees regularly pay to the franchisor?
Regular payments based on their agreement.
What is a major advantage for franchisors in expanding their brand?
They can enter new markets internationally.
What do franchisees lose when they operate a franchise?
Some sense of independence
How did Starbucks adapt when entering the Chinese market?
They localized their menu to fit local tastes.
What happens if a franchisee strays too far from brand guidelines?
They risk losing the rights to the brand.
What is a disadvantage for franchisors if a franchise is poorly managed?
The overall brand reputation may suffer.
What is an advantage for customers of franchises?
They experience international standards of goods and services.
Why might a franchise not guarantee success for a franchisee?
Franchisees must still manage competently.
What can happen if a franchisee fails to meet operational standards?
The franchisor may revoke their rights.
What are the advantages and disadvantages of franchising from the franchisee's perspective?
Advantages:
Established brand recognition
Access to a proven business model

Disadvantages:
Regular payments to franchisor
Loss of independence in operations
What are the advantages and disadvantages of franchising from the franchisor's perspective?
Advantages:
Ability to enter new markets
Gain local knowledge from franchisees

Disadvantages:
Brand reputation risk from poorly managed franchises
What are the implications of international standards for customers at franchises?
Assurance of quality and service
Potential loss of local food variety
What factors contribute to the success or failure of a franchise?
Management competence of the franchisee
Alignment with local market preferences
Adherence to franchisor guidelines
What is a disadvantage for customers in the Caribbean regarding franchises?
They may lose local variety and choices.
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 is the main topic of today's discussion?
The franchise
What does a franchise allow a local business to do?
Use an international brand
Who owns the brand in a franchise relationship?
The franchisor
What is the role of a franchisee?
Acquires rights to use the brand
What governs the relationship between franchisors and franchisees?
Franchise license and contract