Zusammenfassung der Ressource
Business Studies - AQA - GCSE - Franchisee and Franchisor
- Franchisee
- Disadvantages
- Has to abide by the franchisor's rules
- A percentage of all profits go to the franchisor
- Costs can be great
- For example, McDonalds - Paying for
the name, the furniture, the signs, etc.
- Restricted
territory of
promotion
- Ongoing payment
fees to the
franchisor
- Advantages
- Possibility to
get many
customers
from the start
- Brand
recognition/well-known
names
- Relationships
with suppliers
have already
been established
- Good way to find talented workers
- Management
training
- Assistance with site
selection, building, etc.
- Ongoing support
from the franchisor
- Franchisor
- Disadvantages
- Confidential information
is shared with franchisees
- Minimal control
over managers
- 'Shared' ownership
- Loss of flexibility as business
grows
- Risk of franchisee tarnishing public
image if they do not deliver (e.g.
poor customer service, etc.)
- Advantages
- Cost effective labour force
- Get money without having to
run the business themselves
- Franchisees own their
business, more commitment
- Franchisee advertises
brand by owning business