Franchisees

This refers to a person/ company that is granted a license to do business under the franchisor's trademark and trade name.

• FRANCHISOR

• PARTNER

• SOLE PROPRIETOR

• FRANCHISEE

TRUE or FALSE: A franchisor is a person/ company that grants a franchisee a license for the conducting another business branch.

• TRUE

• FALSE

Which of the following business are examples of FRANCHISING? (Choose 2)

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What a Franchisor does?

• Gains the benefits of an established brand name or product without the initial risk.

• Gets support and materials from the franchisee enterprise

• Operates day-to-day operations independently of the franchisor

• Establishes a proof of concept with the business

What a Franchisee does?

• Gains the benefits of an established brand name or product without the initial risk.

• Gets support and materials from the franchisee enterprise

• Operates day-to-day operations dependently of the franchisor

• Purchases right to franchisee

the franchisee does not deliver the service properly, the brand name of the franchisor will suffer.

• Problems of Inconsistent Quality

• Highly Publicized Disputes Between Franchisees and Franchisors

•  Initial Investment

• Difficult in Motivating Franchisees