Benefit Franchisor Flashcards
(9 cards)
1
Q
1
A
Becoming a franchisor means allowing independent businesses to use your brand name
2
Q
2
A
This means that the franchisee provides the capital to open new branches/stores
3
Q
3
A
Therefore reducing the capital required for expansion
4
Q
4
A
Leading to the franchisor being able to expand much quicker
5
Q
5
A
Able to benefit from marketing economies of scale
6
Q
6
A
Fixed costs of advertising spread of < more units/outlets
7
Q
7
A
Lower fixed cost per unit, making advertising more affordable
8
Q
8
A
Able to increase marketing budget and advertise more
9
Q
9
A
Stronger brand image
