Insights into Business

Insights into Business

Franchising

Aims:

To acquire key vocabulary;

Explain;

Describe advantages and disadvantages of the topic;

Expand reading and listening comprehension.

Key vocabulary

• A business system in which a company sells an individual the right to operate a business using the established system or format -

• franchising/franchise;

• A person or company that has been given a franchise -

• franchisee;

• A ____ sells the right to open stores and sell products or services using its brand -

• franchisor

Key vocabulary

• The franchisee pays an initial sum of money, which is called -

• a franchise fee or front end fee

• The franchisor provides ____ which contains all the information that the franchisee needs to run his or her business -

• an operations manual

Open Ended

Think of examples of franchise operations in our country. Think about the following sectors: fast food, clothing and other.

Clothing franchise

• Zara

• Bershka

• Stradivarius

• Pull & Bear

• Mango

Fast Food Franchise

• MC Donald's

• KFC

• Cili Pica

• Double Coffee

• Turkebab

Other

The Body Shop

Narvesen

Swarovski

Statoil

Advantages and disadvantages

of the franchise systems for a franchisee.

Exercise

Decide if the points below refer to (a) franchisees or (b) franchisors (c) both

Multiple Choice

1 They can easily get advice on how to deal with specific problems.

• (a) franchisees

• (b) franchisors

• (c) both

Multiple Choice

2 They do not have to borrow large amounts of capital to expand.

• (a) franchisees

• (b) franchisors

• (c) both

Multiple Choice

3 They must respect certain rules.

• (a) franchisees

• (b) franchisors

• (c) both

Multiple Choice

4 They have to buy supplies from particular sources

• (a) franchisees

• (b) franchisors

• (c) both

Multiple Choice

5 They are responsible for national advertising.

• (a) franchisees

• (b) franchisors

• (c) both

Multiple Choice

5 They are responsible for national advertising.

• (a) franchisees

• (b) franchisors

• (c) both

Multiple Choice

6 They can only sell certain products.

• (a) franchisees

• (b) franchisors

• (c) both

Multiple Choice

6 They can only sell certain products.

• (a) franchisees

• (b) franchisors

• (c) both

Multiple Choice

7 They have to seek approval before selling the business.

• (a) franchisees

• (b) franchisors

• (c) both

Multiple Choice

8 They provide regular reports on the level of sales.

• (a) franchisees

• (b) franchisors

• (c) both

Multiple Choice

9 They can develop their business without having to deal with the problems of recruiting and managing personnel.

• (a) franchisees

• (b) franchisors

• (c) both

Listen and check your answers.

(a) franchisees or (b) franchisors (c) both

1 They can easily get advice on how to deal with specific problems. 

2 They do not have to borrow large amounts of capital to expand. 

3 They must respect certain rules.

4 They have to buy supplies from particular sources.

5 They are responsible for national advertising. 

6 They can only sell certain products. 

7 They have to seek approval before selling the business.

8 They provide regular reports on the level of sales.

9 They can develop their business without having to deal with the problems of recruiting and managing personnel. 

(a) franchisees or (b) franchisors (c) both

1 They can easily get advice on how to deal with specific problems. (a)

2 They do not have to borrow large amounts of capital to expand. (b)

3 They must respect certain rules. (c)

4 They have to buy supplies from particular sources. (a)

5 They are responsible for national advertising. (b)

6 They can only sell certain products. (a)

7 They have to seek approval before selling the business. (a)

8 They provide regular reports on the level of sales. (a)

9 They can develop their business without having to deal with the problems of recruiting and managing personnel. (b)

Reading (15 minutes)

1 You are going to read a text about a typical day in the life of Vanessa Stein, a McDonald's restaurant franchisee. Using the categories given below, make a list of the things you think she has to do during the day.

a people management 

b time management

с networking

d administrative work

e unskilled work

f working at home

Read the text and decide if the following statements are true (T) or false (F)

1 Vanessa Stein starts to organise her day before she gets to work.

2 In the future Vanessa will continue to work in exactly the same way as she does today.

3 The restaurant has not changed since the Steins bought it.

4 The majority of McDonald's restaurants in the UK are not franchises.

5 Vanessa's husband did his training after having been accepted as a franchisee. 

6 Every two weeks they receive an independent evaluation of how their business is performing. 

7 Vanessa feels that she is best at working directly with customers. 

8 All of the adininistrative work is now done in electronic form. 

9 If she didn't have children, she would probably stay longer at work.

Read the text and decide if the following statements are true (T) or false (F)

1 Vanessa Stein starts to organise her day before she gets to work. T

2 In the future Vanessa will continue to work in exactly the same way as she does today. F

3 The restaurant has not changed since the Steins bought it. F

4 The majority of McDonald's restaurants in the UK are not franchises. T

5 Vanessa's husband did his training after having been accepted as a franchisee. F

6 Every two weeks they receive an independent evaluation of how their business is performing. F

7 Vanessa feels that she is best at working directly with customers. F

8 All of the adininistrative work is now done in electronic form. F

9 If she didn't have children, she would probably stay longer at work. T

Vocabulary

• maintenance - keeping equipment in good condition

• booking - reservation

• a report - documents

• to tackle - to deal with

• to update - to review and include recent changes

• records - written documents containing information about the past

Vocabulary

• a payroll - a list of employees and the wages they are paid;

• focus - to pay special attention

• paperwork - work involving written or printed

Poll

How well do you know key vocabulary?

• 100%

• 80%

• 60%

• 40%

• less than 40%

Poll

Can you explain what is franchising and say what are advantages and disadvantages?

• Very well

• I can try if revise

• Not really

• No, I can't