FRANCHISING

Which is a franchisor?

• Takes over a business

• Starts 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 keep all the profits

• Where you have full control

Probability of franchise success is/are because

• Probability of franchise success is/are because

• Proven line of success

• Training support

• All of the above

Franchise is costly because

• franchisee is required to pay advertising fee

• High investment cost

• Initial franchise fee

• All of the above

This is the most widely used form of franchising

• manufacturing production on processing franchise

• product or distribution franchise

• business format franchising

It is the legal document which details the rights and obligations of the franchisor and the franchisee

• franchise agreement

• franchise disclosure document

• franchise contract

It is the total investment cost and its inclusions as well as the date of franchisor is to be paid

• investment amount and fees

• royalty fees

• intital fees

It is an up front lumpsum fee which is also referred to as a franchise fee

• ongoing fees

• initial fee

• various one off fees

These are renewal fees such as advertising fees,training fees etc

• Initial Fees

• Various on one off fees

• On going Fees

He/She is the second party to the franchise agreement

• Franchisor

• Manager

• Franchisee