Franchise and Franchisor

What is a franchisor responsible for in a franchise business?

• Keeping the profits from the outlet

• Financing new outlets and increasing sales

• Buying the licence from the franchisee

• Appointing franchisees and receiving a licence fee

What does a franchisee need to do to operate a franchise business? (There are 2 answers)

• Buy the licence from the franchisor

• Pay for advertising

• Make important decisions on prices

• Obtain products from the franchisor

What could happen if a franchisee manages the business poorly?

• Bad reputation for the whole business

• More independence in decision-making

• Expansion of the business

• Increase in sales and profits

What is a benefit of operating a franchise business in terms of training?

• No need for training

• Training provided by the franchisor

• Training provided by the franchisee

• Training paid for by the franchisee

Who makes decisions regarding the menu and pricing at a restaurant franchise?

• Franchisor

• Customers

• Local area

• Franchisee

What does a potential homebuyer have to pay in addition to the down payment?

• Property taxes

• Home insurance

• Mortgage interest

• Closing costs

What is a disadvantage of operating a franchise business in terms of decision-making?

• No need to follow franchisor's guidelines

• Complete control over prices

• Unable to make decisions for the local area

• More independence in decision-making

Who benefits from the profits of the outlet in a franchise business?

• Local area

• Customers

• Franchisor

• Franchisee