FRANCHISES/MULTINATIONALS

• What is a franchise?


  A franchise is a license to operate in the name of the franchiser.
• What do franchisees pay to the franchiser?

  Franchisees pay royalties and a share of the profit to the franchiser.
• What advantage does a franchisee gain from a franchise?

  A franchisee gains access to an established market and brand exposure.
• What is a potential disadvantage of franchising?

  Franchising may be expensive to set up and they must abide by the rules of the franchiser
• What are multinationals?

  Multinationals are large public limited companies that operate globally.
• Where do multinationals produce and manufacture their goods?

  Multinationals produce and manufacture their goods in countries other than their ’host’ country.
• What type of companies are considered multinationals?

  Big public limited companies that have gone global are considered multinationals.
• What is a key characteristic of multinational companies?

  Multinational companies produce and manufacture goods in various countries.