Introduction to Franchises

Which is a franchisor?

• Starts a business
• Takes over a business
• Buys into an existing brand
• Allows others to use their brand name

What is a franchise?

• Where a business sells the rights to their brand
• Where you have full control
• Where you keep all the profits

What liability is a franchise?

• Limited
• Unlimited
• It depends (could be either)

Fee paid from franchisee to franchisor based on percentage of sales

• royalty fee
• franchise fee
• advertising fee
• license fee

Which is not a major advantage of franchising for a franchisor

• increased revenue
• brand awareness
• new locations without financial responsibility
• none of these

When should you consider franchising if you want to expand your business?

• lack money
• lack time
• lack personnel
• all of above

True or False:  A Franchisee has total control of their business

• TRUE
• FALSE

TRUE or FALSE - The Franchisee can benefit from using the brand name of the Franchise, as well as advertising and marketing

• TRUE
• FALSE

True or False - There is no set up fee involved in setting up a Franchise

• TRUE
• FALSE

Opening a branch of a successful business as a Franchise, is a guaranteed way of making money

• TRUE
• FALSE