General Franchising

    Cards (4)

    • A franchise is when a business gives another business the right to supply its product or service
    • The franchisee normally pays an initial fee to the franchisor and then a percentage royalty on sales
    • Franchising classes as a form of organic or internal growth for the franchisor
    • How a franchise works:
      • franchisee sells the franchisor's products or services
      • trade under the franchisor trade mark or trade name
      • benefit from the franchisor's help and support
      • franchisee owns the outlet he or she runs, but the franchisor maintains control over how products are marketed and sold and how their business idea is used