need to know

• define the term relocation

  a business moving from one place to another
• define the term premises

  all the buildings and land that a business occupies
• define private sector

  part of the economy that is not run by the government - owned by groups of individuals
• what are disadvantages to the franchisee (3 marks)

  a disadvantage to the franchisee is a royalty payment

  this means that the franchisee has to send a payment to the franchisor for the sales turnover of the franchise

  therefore the royalty payment may reduce the franchisee's profitability and cash flow over time
• royalty

  royalty is a payment made to the franchisor from the franchisee based on the sales turnover of the franchise