1.4.1 - Franchising

What is a franchise?

• A government grant for small businesses

• A method of online marketing

• A type of investment in the stock market

• A way of doing business involving a franchisor and a franchisee

What is one of the main benefits of purchasing a franchise?

• You have complete control over the business

• You don't have to pay any fees

• You can utilize the reputation of the franchisor

• You can create your own brand from scratch

Which of the following is NOT an example of a successful franchise?

• Starbucks

• Amazon

• Subway

• Skechers

What is a significant drawback of purchasing a McDonald's franchise?

• High initial investment cost

• Complete freedom in decision making

• No support or training provided

• No established brand name

What is the annual franchise fee range for McDonald's in the UK?

• 1% to 5% of net sales

• 25% to 30% of net sales

• 12.25% to 21% of net sales

• 5% to 10% of net sales