advantages and disadvantages of franchises Flashcards
An advantage of franchises to the franchiser is…
they a\re a low risk form of growth as the franchisee invests the majority of the capital.
An advantage of franchises to the franchiser is…
Receives a percentage of all franchisee’s profits for each year (called royalties).
An advantage of franchises for the franchisee is…
The franchise is a well-known business with an existing customer base.
An advantage of franchises for the franchisee is…
Industry knowledge and training is provided by the franchiser.
An advantage of franchises for the franchisee is…
The franchisee benefits from national advertisements carried out by the franchiser.
A disadvantage of franchises for the franchiser is…
The reputation of the whole franchise can be tarnished by one poor franchise.
A disadvantage of franchises for the franchiser is…
Only a share of profits is received rather than all profits as it would be if they owned each branch.
A disadvantage of franchises for the franchisee is…
There is very little autonomy over decisions as the franchiser decides on products, store layout and uniforms etc.
A disadvantage of franchises for the franchisee is…
Royalties have to be paid each year.
A disadvantage of franchises for the franchisee is…
There are high initial start-up fees.
