FRANCHISE

Which is a franchisor?

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

Franchiser owns the brand

• True

• False

Franchisee does not have the right to use the brand

• True

• False

Franchisor and Franchisee are the same company

• True

• False

Which of the following is not an advantage of the franchisee

• Can use an international brand

• Start up is fast

• Receives advice and training

• Can enter new markets

Which of the following is the disadvantage of the franchisor?

• May loose local variety and choice

• Regular payments to franchisor

• looses Independence in running the business

• if badly run, the brand will suffer

What is a franchise?

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

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