Class12-Entreprenuership-Franchising

What is a franchise?

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

Which is a franchisor?

• Allows others to use their brand and business for a fee

• Takes over a business

• Buys into an existing brand

Fee paid from franchisee to franchisor based on percentage of sales

• royalty fee

• license fee

• advertising fee

Which is a franchisee?

• Provides financing to a business

• Takes over a business

• Buys into an existing brand and proven business

What is a royalty?

• A business award by the queen
• A type of business
• A payment to a franchisor

A franchise is a very flexible business with a lot of operational freedom

• True

• False

A franchisor offers lots of training to the new franchisee

• True

• False

A franchisor uses the money received from franchisee to pay for advertising and marketing materials

• True

• False

Benefits of owning a franchise business

• Proven business model

• Easier to get financing

• Protected territory

• All of the Above

A franchisor expands the brand by using other people's money

• True

• False