Drawback Of Franchisee Flashcards
(9 cards)
1
Q
1
A
Becoming a franchisee means paying to use another businesses brand name
2
Q
2
A
This will lead to higher costs, as
fees and royalties will need to be paid
3
Q
3
A
Increase cash outflows
4
Q
4
A
Lower net cash flow
5
Q
5
A
Possibly reduce cash reserves
6
Q
6
A
Lower liquidity acid test
7
Q
7
A
May be unable to pay day to day bills
8
Q
8
A
Forced to sell non-current assets
9
Q
9
A
Disruption to operations
