Franchising

• What is a franchise?

  A readymade business with an established name
• What does a franchise allow you to do?

  Manage a shop of a big company
• What do you gain access to when you own a franchise?

  Access to their suppliers
• What are the advantages of a franchise?

  • Established name and customer base
  • Training course provided
  • Support when struggling
  • Lower startup costs compared to starting own
  • Business built for you
• What are the disadvantages of a franchise?

  • Initial fee required
  • Percentage of profit paid as royalty
  • Limited choice on products sold
  • Lack of independence
  • Restrictions on location setup
• What is a disadvantage of starting a franchise related to fees?

  You must pay a fee to start
• What is a royalty in the context of a franchise?

  A percentage of profit paid annually
• What support do franchises provide when struggling?

  Help can be a wide range of things
• What is a limitation regarding product choices in a franchise?

  You don’t have much choice on what they sell
• Why might lack of independence be a downside for franchise owners?

  It’s not your own business
• What do franchises build for you?

  All the necessary parts of the business
• What is a limitation regarding the location of a franchise?

  You can only set them up in certain places